Netflix is set to report quarterly earnings on Thursday for the period ended June 30, as the media industry faces consolidation, spinouts and intensified competition. The streaming giant has been navigating increased scrutiny over its ad-supported tier progress and business strategy amid a shifting media landscape. The report comes as traditional pay TV faces disruption from streaming services and tech platforms like Google's YouTube and TikTok continue to capture more screen time from conventional media formats.
Analysts Project 79 Cents EPS for Q2
Analysts polled by LSEG estimate Netflix will report earnings per share of 79 cents and revenue of $12.59 billion for the period ended June 30.
Netflix Targets $3 Billion Advertising Revenue in 2026
Earlier this year, Netflix said it was on track to reach $3 billion in advertising revenue in 2026. This would double its ad revenue year over year. Wall Street has been particularly interested in the progress Netflix has made with its cheaper, ad-supported tier. As streaming subscriber additions have slowed in recent years, advertising has once again become a major revenue driver for media companies.
Netflix Walked Away from Warner Bros. Discovery Deal Late Last Year
Late last year, Netflix made a play for Warner Bros. Discovery's film and streaming business before ultimately walking away from the deal. The proposed deal set off a flurry of speculation about if Netflix is now interested in buying other assets. Earlier this year when defending its move to acquire assets from WBD, Netflix management said it was facing intense competition in a broad landscape of viewing choices.
Netflix Stock Falls 40% Over Past Year
Netflix's stock has fallen about 40% in the past year, which was further accelerated when it sought to acquire WBD. A Keybanc report earlier this week said investor sentiment and concerns are a callback to 2022, when the company reported a loss of subscribers for the first time in more than 10 years. That prompted Netflix to ramp up various business initiatives, including its ad-supported tier and a crackdown on password sharing.
Netflix Reports 325 Million Global Paid Members in January
In January the company said it had 325 million global paid members. Still, Netflix is considered far ahead of the streaming pack when it comes to its subscribers.
Netflix Forecasts 13% Q2 Revenue Growth in April Statement
In April, Netflix said it expects second-quarter revenue to rise 13%, but reiterated its earlier warning that higher content spending would be weighted in the first half of the year due to the timing of releases. The company said at the time that it expects the content amortization growth rate to lower in the second half of the year.
FAQ
What are analysts expecting from Netflix's Q2 earnings report?
Analysts polled by LSEG estimate Netflix will report earnings per share of 79 cents and revenue of $12.59 billion for the period ended June 30.
How much advertising revenue is Netflix targeting in 2026?
Earlier this year, Netflix said it was on track to reach $3 billion in advertising revenue in 2026, which would double its ad revenue year over year.
