Netflix has forecast third-quarter revenue and earnings that fell short of Wall Street targets and said it would cut the frequency of viewing-hours reports as the company seeks new avenues of growth.<\/p>\n
Shares of Netflix fell nearly 8.6% in after-hours trading to $67.99 on Wall Street last night.<\/p>\n
The company led by co-CEOs Ted Sarandos and Greg Peters said it expected $12.86 billion in revenue from July to September and diluted earnings per share of 82 cents. Analysts had forecast $13 billion in revenue and diluted EPS of 84 cents, according to LSEG.<\/p>\n
After years of rapid subscriber gains, Netflix is working to grow by building advertising, live events and video games. The company’s stock has lost about a fifth of its value this year as investors question how it will sustain growth.<\/p>\n
Third-quarter projections “appear to reflect a combination of management caution and a naturally maturing growth profile, rather than any sudden deterioration in the business,” PP Foresight analyst Paolo Pescatore said.<\/p>\n
He added that they would “reinforce the view that Netflix remains strong but is entering a steadier phase of growth with considerably less room for error given the always-high expectations.”<\/p>\n
Netflix said it would cut its twice-yearly release of a viewing-hours report to once a year starting in January 2027 “to keep the focus on our primary financial metrics – revenue and operating profit.” It stopped publishing quarterly subscriber numbers in 2025.<\/p>\n
For the just-ended quarter, Netflix revenue and EPS were roughly in line with analyst estimates. Earnings per share came in at 80 cents for the three-month period, which featured hits including crime drama “I Will Find You” and animated feature “Swapped.” Revenue totaled $12.56 billion.<\/p>\n
“Our financial performance remains solid and we’re on track to meet our objectives for the year,” the company said in its quarterly letter to shareholders.<\/p>\n
Netflix is facing competition from all corners of the entertainment industry, from traditional media companies such as Walt Disney to YouTube, a growing presence in living rooms, and mobile viewing on apps such as TikTok.<\/p>\n
In April, Netflix said it had more than 325 million paying members and still had room to increase that number.<\/p>\n
The company is building an advertising business and offering video games, two initiatives still in the early stages. It repeated an earlier forecast that ad revenue would reach $3 billion by the end of the year.<\/p>\n
The company is counting on its growing number of live events, including an expanded NFL slate, to draw more advertising dollars.<\/p>\n
On a post-earnings video, Peters said the company was considering whether to offer a free option with advertising in some markets but had no near-term plans to launch one.<\/p>\n
Netflix said engagement, or the amount of time people spend watching the service, was “healthy.” Viewing hours grew by 2% in the first half of the year, compared with 1.5% a year ago.<\/p>\n
It said it aimed to stay ahead of the competition in part by using technology to improve all aspects of its business.<\/p>\n
Use of generative artificial intelligence by producers is “scaling quickly” and has been employed in about 300 titles, mostly in post-production, the company said.<\/p>\n","protected":false},"excerpt":{"rendered":"Netflix has forecast third-quarter revenue and earnings that fell short of Wall Street targets and said it would…\n","protected":false},"author":2,"featured_media":554356,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,61,60],"class_list":["post-554355","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/554355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=554355"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/554355\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/554356"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=554355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=554355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=554355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}