<\/p>\n
Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.<\/p>\n
The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion. <\/p>\n
Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion to $51.4 billion.<\/p>\n
The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.<\/p>\n
In a presentation with analysts, Netflix executives touted global expansion plans.<\/p>\n
\u201cWe\u2019re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,\u201d said Spencer Neumann, Netflix\u2019s chief financial officer, in the earnings presentation. \u201cWe believe we\u2019ve got lots and lots of runway for solid growth ahead of us.\u201d<\/p>\n
Those comments appeared intended to assuage investors who\u2019ve grown
concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.<\/p>\n
Netflix\u2019s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data<\/a>.<\/p>\n The streamer represented 7.8% of all TV viewing in the U.S. in April \u2014 the lowest percentage since May 2025. It was 7.5% a year ago, Nielsen said.<\/p>\n By comparison, YouTube has seen its share of the streaming audience grow. YouTube\u2019s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.<\/p>\n Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform\u2019s growing advertising business. It could also undercut Netflix\u2019s ability to raise prices<\/a> in the U.S. and other countries.<\/p>\n Those worries have caused Netflix\u2019s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. <\/p>\n \u201cThe engagement elephant continues to rear its head and investors are on-edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,\u201d wrote Morgan Stanley Research analysts in a research note.<\/p>\n On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and \u201cwe know not all hours are equal\u201d and that engagement on its platform is \u201chealthy.\u201d <\/p>\n \u201cThe entertainment industry remains dynamic and competitive,\u201d Netflix told shareholders. \u201cWe aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.\u201d<\/p>\n The Los Gatos-based company said it plans to spend more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign up days over the last five years, the company said.<\/p>\n In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller \u201cI Will Find You,\u201d which had 11.5 million views; and the romantic comedy film \u201cVoicemails for Isabelle,\u201d which garnered 8.6 million views. <\/p>\n Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.<\/p>\n As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games<\/a> and streaming Major League Baseball\u2019s opening day game<\/a>.<\/p>\n