TLDR NFLX stock has fallen 26.8% in 2026 as investors track slower revenue growth and rising costs. Second-quarter revenue increased 13.4% to $12.56 billion, down from faster growth in previo
Netflix (NFLX) shares have fallen 26.8% in 2026, leaving NFLX stock behind its industry. The decline comes as revenue growth slows, costs rise, and investors weigh a premium valuation against stronger competition. Netflix still expects double-digit annual revenue growth, but growth is slowing.
Netflix reported second-quarter revenue of $12.56 billion, up 13.4% from a year earlier. That rate slowed from 16.2% in the first quarter and 17.6% in the fourth quarter of 2025. UCAN revenue growth eased to 10%, while EMEA growth slowed to 14%.
For the third quarter, Netflix expects revenue of $12.86 billion, representing 11.7% growth. View hours rose only 2% in the first half of 2026. The company continues to rely on membership gains and higher prices, while it has started testing free trials again in several markets.
Netflix expects live programming to use just over 5% of 2026 content spending while generating about 1% of view hours. Recent market coverage showed Netflix shares falling as expansion concerns returned, adding attention to the company’s slower growth path.
Operating margin fell to 33.4% in the second quarter from 34.1% a year earlier. First-half capital spending rose to $414.8 million from $284.2 million. Free cash flow also dropped to $1.5 billion from $2.3 billion, partly because of higher tax payments.
Competition remains intense as Amazon, Disney, and Apple invest in streaming, sports, and advertising. Amazon’s expanding AI and cloud spending also shows how large technology companies can keep funding new services while competing for consumer attention and advertising budgets.
Netflix now expects 2026 revenue of $51 billion to $51.4 billion, equal to 13% to 14% growth. It still targets a 31.5% operating margin. Advertising revenue could roughly double to about $3 billion, while full-year free cash flow may reach $12.5 billion.
The company also has a broad content schedule through 2027, including WWE programming in Japan, series, NFL games, and major live events. Apple shares recently gained on stronger product demand, showing how deep-pocketed rivals continue to strengthen their consumer ecosystems.
NFLX stock trades at a forward price-to-sales ratio of 5.13, above the industry’s 3.52. Netflix also carries $14.4 billion in gross debt. With growth slowing and spending rising, current financial data leaves investors focused on execution, margins, and subscriber demand.
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