Netflix Beats Q2 Estimates Despite Year-Long Share Decline

Netflix reported second-quarter 2026 revenue of $12.56 billion and earnings per share of $0.80, exceeding consensus estimates. The company provided full-year revenue guidance between $51 billion and $51.4 billion, targeting an operating margin of 31.5%.

Despite the quarterly beat, shares have fallen approximately 34% over the past year to $80.44. This decline is attributed to changes in how the company discloses engagement data rather than operational failures. To support shareholder value, the company repurchased $4.7 billion in shares during the second quarter.

Chief Financial Officer Spence Neumann stated that the company currently captures only 7% of a $670 billion addressable revenue market. Growth strategies focus on advertising revenue, which is expected to reach $3 billion in 2026. Analysts at 24/7 Wall St. issued a buy recommendation with a price target of $177.34, citing strong free cash flow guidance of $12.5 billion and operating margins that outperform competitors such as Disney and Spotify.