Netflix beats on EPS but misses on revenue in Q2; stock drops on weak Q3 guidance

Netflix reported Q2 EPS of $0.80, slightly beating the $0.79 estimate, while revenue of $12.56 billion (up 13.4% YoY) narrowly missed Bloomberg consensus of $12.58 billion. Shares fell over 7% in extended trading after the company's Q3 revenue guidance of $12.86 billion fell short of Wall Street's $13 billion expectation, with Q3 EPS guidance of $0.82 also below the $0.84 consensus.

Why it matters: Netflix announced it will stop publishing detailed quarterly viewership metrics and instead report them annually starting in 2027, while US and Canada revenue growth slowed to 10% YoY in Q2.