NEW YORK, July 18, 2026, 16:53 EDT
- Netflix, Inc. NASDAQ:NFLX ended Friday’s session at $68.95, falling 7.26% on the day and slipping 6.0% over the week.
- Revenue for the first half climbed 14.7%, as reported viewing hours were up 2%.
- An initial breakdown estimates implied revenue-per-hour growth at 12.5%, accounting for about 85% of total top-line growth.
Shares of Netflix fell 6.0% for the week. Early estimates of growth drove investor focus onto monetization. U.S. stock markets remained closed on Saturday.
Of that division, about 85% of first-half revenue growth was driven by an increased implied yield for each reported viewing hour. Revenue grew by 14.7%, in contrast with a 2% rise in viewing hours.
The implied revenue-per-hour increase reached roughly 12.5% compared to the previous year. This means that most of the growth is being driven by pricing, membership expansion, and advertising.
The ratio is not an official company-reported metric. It is calculated using rounded viewing growth and total revenue.
Netflix plans to release What We Watched once a year starting in 2027, moving to annual publication instead of twice yearly as before .
The data indicates a deceleration in revenue growth, while operating margins remain steady. H1 numbers are based on Netflix’s disclosed six-month results.
| Period | Revenue growth, y/y | Viewing-hours growth, y/y | Implied revenue/hour growth | Operating margin |
|---|---|---|---|---|
| Q1 2026 actual | 16.2% | — | — | 32.3% |
| Q2 2026 actual | 13.4% | — | — | 33.4% |
| H1 2026 actual | 14.7% | 2.0% | 12.5%* | 32.9% |
| Q3 2026 forecast | 11.7% | — | — | 33.2% |
Initial estimate; figure not reported by the company. Calculation uses approximate viewing growth and overall first-half revenue.
Second-quarter results were nearly in line with expectations. Revenue totaled $12.56 billion and diluted earnings came to $0.80.
Netflix forecast third-quarter revenue at $12.86 billion, while analysts had expected $13 billion. The company projected earnings of $0.82, two cents below the Wall Street consensus.
Shares finished Friday at $68.95, a decrease of 7.26%. The stock underperformed the Nasdaq Composite by 5.9 percentage points. Trading volume came in at 142 million shares, 3.2 times the usual level
Ben Barringer, an analyst at Quilter Cheviot, said the decline was linked to less transparency. “Whenever you take away a data point from investors … you will get punished by the market,” he said. Reuters
Netflix states that not all viewing hours are equal in importance. While live programming is set to account for just above 5% of content spending in 2026, it will represent roughly 1% of total viewing. However, live events generated six out of its 10 highest sign-up days
Netflix maintained robust profit margins, reporting a 33.4% operating margin for Q2 and reiterating its 31.5% target for 2026. The company continues to anticipate about $3 billion in advertising revenue this year.
Second-quarter cash generation declined. Free cash flow for Q2 dropped 33% to $1.53 billion. Increased tax payments, in part related to a termination fee on a deal, pressured cash flow. The company maintained its full-year guidance sta
Netflix continued to trade at nearly 20 times forward earnings, despite the decline. The Walt Disney Co. NYSE:DIS traded at 13.5 times, while Comcast Corp. NASDAQ:CMCSA traded at 6.6 times. Following the report, at least 18 analysts lowered their price targets for Netflix.
Regular trading will restart Monday at 09:30 EDT. Alphabet Inc. NASDAQ:GOOGL is set to report on Wednesday, with Comcast following on Thursday. The companies’ results may provide insight into advertising demand a
Uncertainties persist regarding the provisional measure. Rounded viewing figures may misrepresent the projected yield. Softer advertising demand or cancellations following price increases could also impact results .
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