Netflix shares tank on weak forecast as fears of slowing growth alarm Wall Street

Netflix offered third-quarter revenue and earnings projections on Thursday that hovered below Wall Street targets and said it would reduce the amount of information it discloses on viewing hours as the streaming video pioneer seeks new avenues of growth in a competitive media landscape.Shares of Netflix fell nearly 8% in after-hours trading to $68.45.The company said it expected $12.86 billion in revenue from July through September and diluted earnings per share of 82 cents.Analysts had forecast $13 billion in revenue and diluted EPS of 84 cents, according to LSEG.Third-quarter projections “appear to reflect a combination of management caution and a naturally maturing growth profile, rather than any sudden deterioration in the business,” PP Foresight analyst Paolo Pescatore said.

He added that they would “reinforce the view that Netflix remains strong but is entering a steadier phase of growth with considerably less room for error given the always-high expectations.”Netflix said it would cut its biannual release of a viewing-hours report to once a year starting in January 2027 “to keep the focus on our primary financial metrics — revenue and operating profit.” It stopped publishing quarterly subscriber numbers in 2025.For the just-ended quarter, Netflix revenue and EPS were roughly in line with analyst estimates.Earnings per share came in at 80 cents for the three-month period, which featured hits including crime drama “I Will Find You” and animated feature “Swapped.” Revenue totaled $12.56 billion.“Our financial performance remains solid and we’re on track to meet our objectives for the year,” the company said in its quarterly letter to shareholders.Netflix is facing competition from all corners of the entertainment industry, from traditional media companies such as Walt Disney to YouTube, a growing presence in living rooms, and mobile viewing on apps such as TikTok.Prior to the earnings report, the streaming giant had shed o...