NFLX 2026 Q2

Q3 guidance implies FX-neutral revenue growth of 11%, down from Q2's 12%, which the CFO attributed mainly to prior-year comparison timing (2025 was more back-half weighted) rather than a genuine trend change.

“there is a little bit of quarter-to-quarter chop in growth because last year was more back half weighted”— Spencer Adam Neumann, CFO

Netflix is now testing free trials for non-rejoining new members in a number of countries, a reintroduction of a promotional acquisition tactic not previously used as part of its test-and-learn approach.

“we are now testing free trials for non-rejoining new members in a number of countries”— Gregory K. Peters, Co-CEO / Chief Product Officer

View hours grew 2% in the first half of 2026, a slight acceleration from 1.5% growth in 2025, as the company continues to focus on quality, variety and quantity of engagement.

“It is a slight acceleration compared to 1.5% growth in 2025.”— Gregory K. Peters, Co-CEO / Chief Product Officer

Countering analyst concern about declining Season 2 viewership, management said Season 2 fall-off actually improved slightly this year versus last year across the portfolio.

“our Season 2 fall-off has actually slightly improved this year relative to last year”— Theodore A. Sarandos, Co-CEO / Chief Content Officer

Four weeks into the TF1 integration in France, early member engagement and interaction results are described as very promising, a new distribution partnership model being tested for the first time.

“we are pleased with the performance we are seeing in that integration”— Gregory K. Peters, Co-CEO / Chief Product Officer

The ARM gap between the ads tier and standard-without-ads tier has been narrowing over the past year as ad tech, demand sources, and measurement improve, representing unrealized revenue growth still to be captured.

“there is still a gap between ad-tier ARM and the ARM for our standard without-ads tier. But that gap is narrowing”— Gregory K. Peters, Co-CEO / Chief Product Officer

Since scaling cloud-based TV games last October, monthly cloud game players increased 11x, with adoption significantly ahead of the curve seen for mobile games and higher retention value.

“monthly players for cloud games have increased 11x, and adoption is significantly ahead of the curve we had for mobile games”— Gregory K. Peters, Co-CEO / Chief Product Officer

Netflix Playground kids' games app saw 3x growth in daily players since launch, driving kids' mobile games engagement up 600% year over year.

“kids' mobile games, which is up 600% year over year”— Gregory K. Peters, Co-CEO / Chief Product Officer

Content expense growth is forecast at about 10% this year, higher than the 8% five-year average but below the 14% ten-year average, reflecting a slight uptick in investment pace while remaining disciplined.

“forecasting content expense up about 10% this year — a little higher than the 8% we averaged over the last five years”— Theodore A. Sarandos, Co-CEO / Chief Content Officer

GenAI workflows now used across roughly 300 titles are enabling faster, cheaper production (e.g., a documentary segment made twice as fast and at half the cost), with savings expected to be reinvested into more content.

“produced twice as fast and at half the cost of previous options”— Theodore A. Sarandos, Co-CEO / Chief Content Officer

Netflix repurchased $4.7 billion of shares in Q2, the largest quarterly repurchase in company history, with about $27 billion of remaining authorization capacity.

“we repurchased $4.7 billion of shares this quarter. That is our largest quarter of share repurchase in our history”— Spencer Adam Neumann, CFO