Netflix stock drops after Q3 revenue falls short, co-CEO says not all views are 'created equal' - Yahoo Finance UK

Netflix (NFLX) shares dropped over 7% on Friday, July 17, 2026, after its third quarter guidance disappointed Wall Street and engagement trends failed to reassure investors.
Second quarter revenue rose 13.4% year over year to $12.56 billion, just below Bloomberg consensus of $12.58 billion, while growth slowed from 16.2% in the first quarter; earnings per share came in at $0.80, topping the $0.79 estimate and last year's $0.73.
The company guided current-quarter revenue to $12.86 billion versus Wall Street's $13 billion expectation, with EPS of $0.82 against the $0.84 estimate, and reaffirmed full-year 2026 revenue of $51 billion to $51.4 billion.
Regionally, the US and Canada segment grew 10% year over year, lagging its performance over the prior four quarters, and only Latin America saw growth accelerate from the previous quarter.
Bloomberg Intelligence senior media analyst Geetha Ranganathan noted a slowdown, questioning whether management has articulated a plan to reinvigorate the business, and said there was "nothing here to get excited about."
View hours surpassed 97 billion in the first half of 2026, a company record and 2% growth versus 1.5% in 2025, achieved despite competition from the Winter Olympics and World Cup, with management stressing "not all hours are created equal." Netflix stock has fallen 40% over the past 12 months.