Netflix, Inc.

Management guided Q3 to 12% reported revenue growth and 11% FX-neutral revenue growth. For full-year 2026, it reiterated 13% to 14% top-line growth, roughly 12% FX-neutral or about $6 billion of incremental revenue year over year. Greg Peters said view hours grew 2% in the first half of 2026, or 1.5 billion incremental hours versus the same period last year, compared with 1.5% growth in 2025. Ted Sarandos said content expense is forecast to be up about 10% this year, above the 8% average over the last 5 years and below the 14% average over the past decade. On capital return, Spence Neumann said Netflix repurchased $4.7 billion of shares in Q2, its largest quarter of buybacks ever, and still has about $27 billion of remaining authorization. Management did not provide revenue or EPS for the quarter in this interview format.

Ted Sarandos framed the quarter as evidence that Netflix’s core content strategy is working across the world, citing strong examples in series, film, live events, and local-language programming. He stressed that Netflix is disciplined on content spend, growing it slower than revenue, and that new bets like live, video podcasts, vertical clips, and games are being added gradually as the company sees signals of value. His tone was confident and expansive, repeatedly describing Netflix as still early in a very large global opportunity.

Spence Neumann focused on top-line durability and 2026 execution, saying Netflix is not managed quarter to quarter but toward sustained healthy revenue and profit growth. He said Q3 revenue growth is expected to be 12% reported and 11% FX-neutral, with drivers similar to Q2: membership growth, pricing, and ads. He also pointed to a large operating runway, saying Netflix is under 45% penetrated into roughly 800 million addressable households and captures only about 7% of an estimated $670 billion addressable revenue market. On capital allocation, he said there is no change in philosophy, strong liquidity and a healthy balance sheet remain intact, and the company returned excess cash via $4.7 billion of share repurchases in Q2.

Analysts pressed on the slight slowdown in FX-neutral revenue growth, but management said the guide reflects normal quarter-to-quarter noise and a back-half-weighted comparison from last year, not a change in trend. Questions on engagement drew a detailed response that Netflix uses quality, variety, and quantity together, and management said raw view hours are only one input because different hours have different business value. On second-season viewing, Ted Sarandos said there has been no material deterioration and no need to change release strategy. On live regional events like the World Baseball Classic, he said they can bring higher churn because they attract sign-ups quickly, but the net effect is positive and consistent with expectations. On M&A speculation, management reiterated that Netflix is primarily a builder, not a buyer, and said large deals face a very high bar.