Netflix Inc (NASDAQ:NFLX) reported second-quarter revenue of $12.56 billion on Thursday, falling short of analyst expectations of $12.59 billion. The revenue represented a 13% increase year-over-year but was below the consensus estimate, according to Benzinga Pro.
Regional Performance
Revenue breakdown by region showed mixed results. In the U.S. and Canada (UCAN), revenue reached $5.43 billion, a 10% increase from the previous year. Europe, the Middle East, and Africa (EMEA) generated $4.03 billion, marking a 14% rise. Latin America (LATAM) revenues increased by 21% to $1.58 billion, while the Asia Pacific (APAC) region saw a 16% increase, totaling $1.51 billion.
Earnings and Future Guidance
Netflix's earnings per share were reported at 80 cents, surpassing the consensus estimate of 79 cents. The company noted strong engagement, with view hours up 2% year-over-year in the first half of 2026. Looking ahead, Netflix expects third-quarter revenue of $12.86 billion, a 12% increase year-over-year, though this also falls short of the Street estimate of $13.01 billion. Earnings per share for the third quarter are projected at 82 cents, slightly below the consensus of 84 cents.
Netflix emphasized its focus on live programming, which is expected to account for about 5% of its content spending for 2026. The company is also anticipating over $3 billion in ad-related revenue for the same year, with strong interest noted in its live events lineup.
The disappointing revenue guidance could lead to a decline in Netflix's stock price, affecting investor sentiment in the streaming sector. Analysts will closely watch advertising revenue growth and membership trends as indicators of future performance. Investors will watch for the third-quarter earnings report scheduled for October, which will provide further insights into Netflix's financial trajectory.