Netflix is expecting a slowdown in revenue growth for the second consecutive quarter. Its stock plummeted 8%.

Streaming giant Netflix has forecast a slowdown in revenue growth for the current quarter. This marks the second consecutive reporting period in which this has occurred, a trend that could heighten investors’ concerns about the service’s future prospects, Bloomberg notes. Market participants are also concerned about declining viewer engagement, and Netflix has decided to release viewing data less frequently. Netflix shares fell more than 8% following the release of the earnings report.

Netflix expects revenue for the current quarter to grow 12% year-over-year to approximately $12.9 billion, with earnings of $0.82 per share. Both figures fell slightly short of analysts’ expectations, according to Bloomberg. But what is causing investors more concern is the slowdown in revenue growth. In the second quarter, revenue totaled $12.6 billion, representing a 13% year-over-year increase, with earnings of $0.80 per share. Analysts surveyed by LSEG had expected revenue of $12.59 billion and earnings of $0.79 per share, according to CNBC. In the first quarter, revenue rose 16% compared with the same period a year earlier.

Netflix also narrowed its annual revenue forecast to $51–51.4 billion, down from the previous range of $50.7–51.7 billion.

Market concerns stem not only from the financial outlook but also from engagement trends. In the first half of 2026, users watched more than 97 billion hours of content on Netflix—a 2% increase year-over-year. The company described engagement as “healthy,” but decided to reduce the frequency of its viewership reports from twice a year to once a year. The engagement metric has taken center stage following reports that viewership of Netflix series declines after the first season, CNBC notes.

"The purpose of separating the publication of this report from our financial results is to maintain a focus on our key financial metrics: revenue and operating profit," the letter to shareholders states.

“There is no linear relationship between viewing hours and revenue or profit, because not all viewing hours are created equal,” Netflix Co-CEO Greg Peters said during a conference call, according to CNBC. Co-CEO Ted Sarandos also said Thursday that the company does not see “any significant changes” in viewership for second seasons of series compared to the first. “Our audience churn in second seasons has actually decreased slightly this year compared to last year, so we’re not changing our release strategy,” Sarandos said.

Advertising remains a key focus for both Netflix’s business and its investors: this segment has become a revenue driver in the media sector amid a slowdown in subscriber growth for streaming services, according to CNBC. On Thursday, the company confirmed that it still expects advertising revenue to roughly double year-over-year, reaching $3 billion.

Following the release of its earnings report, the streaming service’s stock plummeted by more than 8%. During the main trading session on Thursday, July 16, the stock rose 0.9% to $74.35.

Over the past year, Netflix’s stock has fallen by nearly 40%. The company’s attempt to acquire Warner Bros. Discovery and its subsequent financial results have led investors to fear that the streaming market leader is losing momentum, according to Bloomberg.

In the first half of the year, Netflix went through a period lasting several months without any major new hits, and many returning series failed to retain their audience in their new seasons. This dry spell ended with the release of *I Will Find You*, an adaptation of Harlan Coben’s novel: the project became Netflix’s most-watched new original series this year, according to Bloomberg.

Netflix sought to reassure investors by outlining a plan to sustain revenue growth in the coming years. The company is investing in new content formats, including live sports broadcasts and video podcasts. According to Netflix, podcasts attract more viewers during the day and on mobile devices, while live broadcasts help attract many new customers relative to their actual share of total viewing time.

In recent weeks, Netflix has also announced a series of deals with popular social media creators, including YouTube stars Alan Chikin Chow and Nick DiGiovanni, and separately highlighted the use of generative AI in approximately 300 shows. “We are increasingly using these tools to deliver higher-quality results faster and at a lower cost than with traditional methods,” the company wrote in a letter to shareholders. Netflix has also resumed offering free trial periods on a trial basis in select markets.

Analysts are generally positive about Netflix stock: the stock has 40 “buy” recommendations (Buy and Overweight ratings) and 15 “hold” recommendations, with no analysts recommending a sell, according to MarketWatch. The average price target is $112.77—that’s 52% higher than the closing price on July 16.

This article was AI-translated and verified by a human editor