Los Gatos shares slide as Netflix cuts growth outlook
PUBLISHED Jul 17, 2026, 9:38 AM ET
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LOS GATOS, California, July 17, 2026 – Netflix Inc. shares fell as much as 10% in premarket trading on Friday after the company issued a softer-than-expected revenue forecast for the third quarter, deepening investor concerns about a slowdown in its growth. The decline followed a challenging stretch for the streaming giant, whose stock is already down 21% so far this year amid intensifying competition and changes in viewing habits. While the market reaction focused on the outlook, the latest quarterly report showed that Netflix continues to generate solid profits and double-digit revenue growth, underscoring the contrast between its current performance and more cautious guidance. For the second quarter of 2026, the company reported net profit of $3.4 billion, or 80 cents per share, up 9% from $3.13 billion, or 72 cents per share, a year earlier and slightly above Wall Street’s consensus estimate of 79 cents. Revenue grew 13.4% year-over-year to $12.56 billion, just below analyst expectations of $12.58 billion. The company projected third-quarter revenue growth of about 12%, or $12.86 billion, compared with analyst forecasts of roughly 13% growth, or about $13 billion. The guidance marked a second consecutive quarter of slowing sales expansion and helped trigger the premarket sell-off in the shares.
By James Porter | JQJO News
Timeline of Events
- 2025 Netflix begins facing intensifying streaming competition
- Early 2026 Company warns of moderating subscriber additions
- 2026 year-to-date Netflix shares fall 21 percent
- Second quarter 2026 Profit rises nine percent year-over-year
- Second quarter 2026 Revenue slightly misses analyst expectations
- Third quarter 2026 forecast Revenue growth guided to twelve percent
- Friday July 17 2026 Shares drop ten percent premarket trading
- Today Investors reassess Netflix long-term growth trajectory
News Intelligence
- Netflix's falling shares could impact your investments if you hold stock in the company. It's a reminder to keep an eye on your portfolio and consider diversifying. If you're a Netflix user, this could lead to changes in pricing or content offerings down the line.
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