Netflix Revenue Growth Slows for Two Consecutive Quarters
Netflix's revenue growth has slowed to 16.2% in Q1 and 13.4% in Q2 of 2026, down from a peak of 17.6% in the previous quarter. Management expects around 12% growth for Q3, signaling continued deceleration but still double-digit expansion. Despite this slowdown, Netflix's demand metrics remain strong: viewing hours increased year-over-year and advertising revenue is on track to nearly double by the end of 2026. The company has maintained profitability with second-quarter operating income rising 11% to $4.2 billion. Management forecasts an improved operating margin for 2026, suggesting continued profit growth even as revenue expansion slows. Netflix's stock is currently trading at a price-to-earnings multiple of about 19 times next year’s expected earnings — significantly lower than its recent high but not necessarily undervalued. The slowdown appears to be more due to tough comparisons from the strong performance in late 2025 rather than declining demand. Netflix's guidance suggests growth is stabilizing around a mid-teens rate, and while this may not excite investors seeking rapid acceleration, it still represents solid long-term fundamentals.
Tickers: $NFLX
Topics: Netflix revenue growth stock valuation streaming industry