Netflix reported second-quarter-2026 revenue of $12.56 billion, a 13% increase year over year, and announced it will shift to an annual schedule for its viewing-metrics reports beginning in 2027. The company's shares fell more than 10% on Friday, July 17, 2026, following the release of its financial results and guidance update.

Netflix reported earnings per share of $0.80 for the quarter and an operating margin of 33.4%, down from the same period the previous year. The company forecasted third-quarter-2026 revenue of $12.86 billion and updated its full-year revenue outlook to a range of $51 billion to $51.4 billion. Netflix also reiterated its target of a 31.5% operating margin for 2026.

The company repurchased approximately $4.7 billion of its stock during the second quarter. Shares had closed at $74.35 on Thursday, July 16, 2026, before falling 8% to 9% in after-hours trading that evening. The decline extended into the following session, with shares dropping more than 10% on Friday.

Netflix announced the change to its viewing-metrics reporting schedule, stating it will release the reports annually instead of every six months starting in 2027. Co-CEO Greg Peters addressed the relationship between engagement and financial performance. "There is not a linear relationship between view hours and revenue and profit because all hours are not created equal," Peters said.

The company provided details on its investments in live programming. Netflix stated that live programming is expected to account for just over 5% of its content spend in 2026, roughly $1 billion of its projected $20 billion total. Live programming accounted for about 1% of view hours during the year.

Netflix stated that live event programming accounted for six of the top 10 new member sign-up days over the last five years. The company outlined its upcoming live programming lineup, which includes the 2027 FIFA Women's World Cup, an expanded NFL slate with five games in the upcoming season, WWE, and MLB events.

"So live events do a lot of lifting for us for [subscriber] acquisition," Peters said. "They're good for monetization. They drive ad revenue, fandom."

On the advertising front, Netflix stated that 2026 U.S. upfront advertising negotiations are in advanced stages and commitments are expected to close in the next few weeks. Peters also addressed speculation about a free tier, stating the company is considering a free ad-supported service but has no near-term plans to launch one.

Co-CEO Ted Sarandos provided updates on content performance and production innovation. Sarandos stated that second-season viewing for Netflix shows is performing within expectations and there is no material change compared to season one. He also noted that AI-enhanced footage in the documentary "The American Experiment" was produced twice as fast and at half the cost.

CFO Spencer Adam Neumann provided context on the company's market position. Neumann stated that Netflix has penetrated less than 45% of its roughly 800 million addressable households worldwide and that the company accounts for only about 5% of global TV viewing. The company also maintains a TV licensing partnership with TF1 in France.

Netflix's decision to reduce the frequency of its engagement reporting comes as the company continues to expand its live programming offerings and advertising business. The shift to annual metrics reports will provide investors with less frequent data on viewer behavior as the streaming market matures and competition intensifies. The company's financial results and guidance reflect continued revenue growth, though the operating margin declined slightly year over year.

The stock repurchase program and market reaction suggest investors are weighing the company's growth trajectory against its strategic decisions around transparency and content investment. Netflix's positioning in live sports and events represents a shift toward programming that drives subscriber acquisition and advertising revenue, areas the company has identified as growth opportunities.