Netflix Q3 revenue forecast misses estimates, shares fall 8.6% after hours

Published Jul 17, 01:09 AM UTC

Netflix forecast third-quarter revenue of US$12.86 billion and diluted EPS of US$0.82, both below analyst expectations of US$13 billion and US$0.84 respectively, causing shares to fall nearly 8.6% in after-hours trading to US$67.99. The company also announced it will reduce its twice-yearly viewing-hours report to once a year starting in January 2027, shifting focus to revenue and operating profit. Netflix faces intensifying competition from Disney, YouTube, and TikTok, and its stock has lost about a fifth of its value in 2026 as investors question growth sustainability. For the just-ended quarter, revenue was US$12.56 billion and EPS US$0.80, roughly in line with estimates. The company is pursuing growth through advertising, live events, and video games.