Netflix reports higher profits as investors worry about growth

This is read by an automated voice.Please report any issues or inconsistencies here.

See more from the L.A.Times in Google Search.

Set us as preferred 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.The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue.The latter is expected to reach $3 billion this year, the company said.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.Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing adve...