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.

Prepared by Christopher Adams and reviewed by editorial team.