Netflix reports higher profits as investors worry about growth
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Netflix reports higher profits as investors worry about growth Wendy Lee Thu, July 16, 2026 at 5:50 PM EDT 3 min read NFLX Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects. The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion. Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion to $51.4 billion. In a presentation with analysts, Netflix executives touted global expansion plans. "We're entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure," said Spencer Neumann, Netflix's chief financial officer, in the earnings presentation. "We believe we've got lots and lots of runway for solid growth ahead of us." Those comments appeared intended to assuage investors who've grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share. Netflix's share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data . The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% a year ago, Nielsen said. By comparison, YouTube has seen its share of the streaming audience grow. YouTube's TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said. Those worries have caused Netflix's stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. "The engagement elephant continues to rear its head and investors are on-edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual," wrote Morgan Stanley Research analysts in a research note. On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and "we know not all hours are equal" and that engagement on its platform is "healthy." "The entertainment industry remains dynamic and competitive," Netflix told shareholders. "We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization." In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller "I Will Find You," which had 11.5 million views; and the romantic comedy film "Voicemails for Isabelle," which garnered 8.6 million views. As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball's opening day game . This story originally appeared in Los Angeles Times .
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