Netflix told investors it expects $12.86 billion in revenue and diluted earnings per share of $0.82 for the July through September quarter, figures that sit below Wall Street forecasts. Following the announcement, the stock dropped about 4% in after-hours trading to $71.30.
Analysts surveyed by LSEG had penciled in $13.00 billion in revenue and diluted EPS of $0.84 for the period. The guidance represents a modest miss relative to those estimates, while the company said it would change how it communicates engagement metrics going forward.
Current quarter results and disclosure changes
For the quarter that just closed, Netflix reported revenue of $12.56 billion and diluted earnings per share of $0.80, results the company described as being roughly in line with analyst expectations. The period included audience gains for titles such as the crime drama "I Will Find You" and the animated feature "Swapped."
At the same time, Netflix said it will reduce the frequency of its viewing-hours report from twice a year to once a year beginning in January 2027. The company framed the move as an effort to keep the conversation focused on core financial metrics - revenue and operating profit. Netflix had previously stopped publishing quarterly subscriber counts in 2025.
Growth priorities and engagement
Netflix reiterated its plan to build an advertising business and to expand its gaming offerings, noting both efforts remain at early stages. The company repeated a prior forecast that advertising revenue would reach $3 billion by the end of the year.
To bolster ad monetization, Netflix pointed to an expanding slate of live events, including a wider presence with NFL programming, as a way to attract more advertising dollars. The streaming service said engagement - measured as the time users spend watching - remains healthy. It reported that viewing hours rose 2% in the first half of the year, compared with a 1.5% increase a year earlier.
Investor context
Heading into the earnings release, Netflix had lost more than a fifth of its market value as investors questioned the company’s ability to accelerate revenue and add new customers. In April, Netflix reported having more than 325 million paying members and said there was still room to grow that base.
The company is pursuing multiple product and monetization levers - advertising, games, and live-event programming - while narrowing some public engagement disclosures. Management described its financial performance as solid and said it remains on track to meet its objectives for the year.
What this means
- Netflix’s near-term guidance undershot consensus, contributing to a negative market response.
- Disclosure changes reduce the cadence of a commonly watched engagement metric, shifting emphasis to revenue and operating profit.
- Management continues to prioritize ad sales, gaming, and live events as growth levers while signaling steady, if modest, audience engagement gains.