On Thursday Netflix released its earnings report and it was abysmal. The stock dropped over 8% as the report centered around weak Q3 guidance, slow revenue growth, and no clear direction for the future.
Netflix reported a revenue of $12.56 billion, just shy of its $12.58 billion expectations. Company growth slowed from 16.2% in Q1. It delivered an EPS of $0.80, better than the $0.79 estimate.
The digital media company predicts a Q3 revenue of $12.86 billion, below Wall Street’s $13 billion expectation. Netflix also predicts an EPS of $0.82, just under the $0.84 consensus.
Growth has become a major obstacle for Netflix, its U.S. and Canada markets slowed to 10%. Latin America was the only region where growth accelerated.
The company hasn’t doesn’t have a clue on how it plans to reignite growth. Its growth initiatives are just lame answers to questions they don’t properly understand or are even attempting to understand.
Management’s solutions for its growth issue are: launching short-form content, expanding advertising, and increasing live sports. These aren’t groundbreaking concepts. It seems that Netflix CEOs did their homework 5 minutes before class started.
Viewing hours for Netflix reached 97 billion hours in the first half of 2026. Growth in viewing hours only increased 2%, showing that engaging isn’t accelerating dramatically.
Management’s only comment about that was “not all hours are created equal,” claiming live events generate subscribers and advertising revenue even if they don’t produce as many viewing hours.
This embarrassing engagement growth made Netflix now decide to stop reporting detailed viewing metrics every quarter and instead publish them once a year. Leadership gave a weak excuse of wanting its investors to focus more on financial performance instead of engagement performance.
It takes some real audacity to deliver atrocious results and then say they’re not going to show investors the numbers anymore because they’ll get mad. How do they expect anybody to properly invest in the company if the CEOs want to hide the numbers that drive the financials? It’s absurd, it’s conniving, and it’s insulting to the investor.
