Netflix (NFLX) investor relations material

Executive summary

• Q2 2026 revenue reached $12.56 billion, up 13% year-over-year, with robust profit growth and strong membership acquisition and retention trends; full-year top-line growth expected at 13%-14% reported, 12% FX-neutral, adding about $6B in incremental revenue year-over-year.

• Net income for Q2 2026 was $3.40 billion, a 9% increase from Q2 2025, with operating income up 11% to $4.19 billion.

• Operating margin for Q2 2026 was 33.4%, down 0.7 percentage points year-over-year due to higher technology, development, and marketing expenses.

• Membership acquisition and retention trends remain healthy, with price adjustments performing well and ad revenue increasing.

• A $2.8 billion termination fee from the canceled WBD transaction significantly boosted other income in the first half of 2026.

Financial highlights

• Six-month revenue rose 15% year-over-year to $24.81 billion, with six-month net income at $8.68 billion.

• Q3 2026 revenue guidance: 12% reported growth, 11% FX-neutral, driven by subscription and ads revenue.

• View hours grew 2% in H1 2026, an incremental 1.5B hours year-over-year, slightly accelerating from 2025.

• Largest-ever quarterly share repurchase in Q2: $4.7B, with $27B remaining authorization; $5.9B in stock repurchases completed in H1 2026.

• Cash and short-term investments totaled $9.13 billion as of June 30, 2026.

Outlook and guidance

• Full-year 2026 guidance: 13%-14% reported revenue growth, 12% FX-neutral.

• Management expects continued investment in global original content and sufficient liquidity from operations, available funds, and access to financing for the next twelve months and beyond.

• Continued focus on expanding addressable market and increasing engagement through new content formats and partnerships.

• Ongoing focus on operating margin growth and global expansion.