Netflix’s Q2 Shows Price Increases and Ads Driving Growth, but Guidance Sends Shares Lower

Netflix reported second-quarter revenue of $12.56 billion, up 13.4% year over year, and net income of $3.4 billion. The company said recent membership growth and price increases contributed to results and projected approximately $3 billion of advertising revenue for 2026. Viewing hours increased about 2% in the first half to roughly 97 billion, but Netflix said it will move its detailed engagement report from twice yearly to annually beginning in 2027. Shares fell more than 8% after hours as third-quarter revenue guidance came below analysts’ expectations.