Netflix shares plunged 8% in New York trading after the streaming giant reported second-quarter results that, while profitable, failed to meet market expectations for growth momentum.
The company posted net income of $3.4 billion, an 8.8% increase year-over-year, with diluted earnings per share rising to $0.80 from $0.72 in the same period last year.
Despite the top-line profit growth, the market’s reaction was driven by a disappointing revenue print and a subsequent reduction in the company’s full-year guidance.
The sell-off underscores investor frustration with the streaming sector’s maturing growth profile.
While Netflix continues to generate substantial cash flow, the inability to sustain previous revenue acceleration rates has prompted a repricing of the stock.
The guidance cut signals that management sees headwinds persisting into the latter half of 2026, likely due to increased content costs and competitive pressure in the global streaming market.