Netflix, Inc. 8-K
PositiveEarningsNew guidance
Higher content amortization weighed on operating-profit growth; advertising revenue is projected to roughly double as the FY revenue range narrows.
Filed 2026-07-16 16:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 and FY2026 guidance. Revenue grew 13.4% Y/Y to $12.56B, driven by membership growth, pricing and advertising; Netflix narrowed its FY2026 revenue range while keeping its operating-margin outlook. It will publish its view-hours report annually in Q1 starting in 2027, rather than twice a year.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $12.6B | $11.1B | 13.4% |
| Operating income | $4.19B | $3.77B | 11.1% |
| Operating margin | 33.4% | 34.1% | -70 bp |
| Net income | $3.40B | $3.13B | 8.83% |
| Diluted EPS | $0.80 | $0.72 | 11.1% |
| Operating cash flow | $1.74B | $2.42B | -28.0% |
| Non-GAAP free cash flow | $1.53B | $2.27B | -32.7% |
- Revenue grew in all regions; operating income and margin were slightly ahead of forecast due to expense timing. Higher first-half content amortization growth weighed on operating-income growth; Netflix expects content amortization to grow slower in H2.
- Operating cash flow and free cash flow were lower partly because of higher cash tax payments, including the impact of the Warner Bros. termination fee.
- Share repurchases were $4.71B vs $1.65B a year earlier; diluted shares outstanding fell 2.0% Y/Y to 4.261B. Cash was $9.10B, gross debt $14.4B and non-GAAP net debt $5.24B. The board authorized an additional $25B in repurchases in April; $27.1B of authorization remained at quarter-end.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue; Y/Y growth | Q3 2026 | $12.86B; 11.7% (11% FX-neutral) | — | — |
| Operating income | Q3 2026 | $4.268B | — | — |
| Operating margin | Q3 2026 | 33.2% | — | — |
| Net income | Q3 2026 | $3.452B | — | — |
| Diluted EPS | Q3 2026 | $0.82 | — | — |
| Revenue; Y/Y growth | FY2026 | $51.0B-$51.4B; 13%-14% (≈12% FX-neutral) | — | Narrowed |
| Operating margin | FY2026 | 31.5%, reported and at 1/1/2026 FX rates | 31.5% | Reaffirmed |
| Advertising revenue | FY2026 | ≈$3B; projected to roughly double | — | — |
| Non-GAAP free cash flow | FY2026 | ≈$12.5B | — | — |
| Cash content spend to amortization ratio | FY2026 | ≈1.1x | — | — |
| Content amortization growth | FY2026 | ≈10% | — | — |
| Operating income growth | FY2026 | 20%+ | — | — |
Investor Takeaways
- Q3 results will show whether revenue growth and operating margin track the forecast.
- FY2026 revenue, operating margin, advertising revenue and free cash flow will test the full-year outlook.
- Netflix expects US upfront advertising commitments to close in the next few weeks.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3