Netflix earnings forecast disappoints Wall Street, shares tumble

Netflix reported Q2 results roughly in line with estimates—$0.80 EPS and $12.56B revenue—but its Q3 guidance of $12.86B revenue and 82-cent EPS fell short of Wall Street's $13B and 84-cent forecasts. Shares dropped nearly 8.6% in after-hours trading to $67.99 as investors questioned the streaming giant's ability to sustain growth amid intensifying competition from Disney, YouTube, and TikTok.

Why it matters: Netflix announced it will reduce viewing-hours reporting from twice-yearly to once a year starting January 2027, while continuing to invest in advertising (targeting $3B in ad revenue by year-end), live events, and video games.