Netflix Shares Slide on Weaker-Than-Expected Q3 Outlook
Synopsis
The streaming company’s shares fell more than 8% in after-hours trading after the streaming giant issued third-quarter revenue and earnings guidance below Wall Street expectations.
Key Highlights
- Netflix shares down on Q3 outlook that missed the mark
- Company is forecasting for Q3 Revenue of US$12.8 billion and EPScan expect USD0.82 Per Share
- Quarterly revenue and profit rose from a year ago.
Netflix shares fell 8.2% to around $68 after the company posted a third-quarter outlook of weaker-than-expected results. Netflix expects US$12.8 billion in revenues and diluted earnings per share of 82 cents. Analysts were looking for US$13 billion in revenue and US$0.84 per share, based on LSEG data.
Second-Quarter Results
Netflix had a second quarter of US$12.56 billion, an increase from US$11.08 billion on a more outdated quarter a year ago. Net income increased to US$3.40bn from US$3.13bn, while operating profit rose to US$4.19bn from 2017’s earnings of US$3.77bn.
Starting with January 2027, Netflix has also said it will provide annual instead of twice-a-year totals for its most popular titles list.
The company says this adjustment is designed to keep it focused on the company’s core financial key performance indicators (KPIs), including revenue and operating profit Netflix stopped publishing monthly subscriber numbers in 2025.
Source: Capital Brief
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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