Netflix reports its Q2 2026 results after the closing bell on 16 July, with the stock down 41.5% over the past 12 months. Netflix’s share price (NASDAQ: NFLX) has been weighed down by concerns over revenue momentum and high-profile M&A missteps on the year, sitting within a few percentage points of multi-year lows.
Analysts expect earnings per share of US$0.79, up from US$0.72 in the prior corresponding period. Revenue is forecast at US$12.58 billion, for a 13.56% Y/Y growth rate.
What to watch
Subscriber growth remains the key focus. Investors will scrutinise net additions across regions, particularly in markets where Netflix faces renewed competition following the Paramount Skydance merger and ongoing industry consolidation.
Revenue per member and churn rates will also matter. The company served up disappointing Q2 revenue guidance earlier in the year, confirming that top-line growth is decelerating. Any update on pricing strategy, ad-tier adoption, or regional ARPU trends could shift sentiment quickly.
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Gaming is back in the spotlight. Netflix launched two new titles in June at no additional cost to subscribers: FIFA World Cup Launch Edition on 11 June, featuring 48 national teams and over 1,200 real-world players, and Unhinged on 30 June, a story-driven horror game developed by its Night School Studio and starring Zoë Kravitz and Sadie Sink.
The company is positioning gaming as a lever to drive engagement beyond streaming, but analysts remain sceptical. Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on 6 July but cut the price target from US$120 to US$110, citing uncertainty around the gaming pivot and broader revenue visibility. The revised target still implies 44% upside from current levels.
The Setup: Netflix Under Pressure, Yet Remain Market Leader
Netflix entered 2026 under pressure. The company’s interest in acquiring most of Warner Bros. Discovery at a steep price raised concerns about capital discipline, and its eventual decision to cede ground to Paramount Skydance created a stronger competitor in an already crowded streaming landscape.
With Netflix shares having sold off more than 40% from the highs of last year, analysts are now divided on whether the sell-off represents a reset or the start of a longer period of margin compression and subscriber saturation.
Goldman Sachs maintains a Buy rating with a US$110 price target, citing Netflix’s scale advantages and content library depth, but the firm’s recent target cut reflects caution around near-term growth rates. Other analysts have flagged concerns over slowing international momentum and the unproven economics of the gaming expansion.
The Q2 print will test whether Netflix can stabilise its growth narrative or whether the market needs to reprice expectations lower. Subscriber trends, guidance quality, and management commentary on strategic priorities will determine whether the stock can begin clawing back losses or faces further downside pressure.
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