Netflix Inc. (NASDAQ:NFLX) shares are heading for their worst day since April 2022, leaving the streaming pioneer more than 50% below the record high it set on June 30, 2025.
The stock fell as much as 11.8% in the opening minutes of Friday’s session, changing hands near $66.
What Went Wrong?
Second-quarter revenue rose 13% year-over-year to $12.56 billion, just short of the $12.58 billion Wall Street expected.
Earnings of 80 cents per share edged past estimates by a penny. Net income climbed to $3.40 billion from $3.13 billion a year earlier.
The problem was everything that comes next.
Netflix guided third-quarter revenue to $12.86 billion – roughly 12% growth, below consensus – and narrowed its full-year range to about $51 billion with a midpoint under estimates.
That landed badly at a moment when investors already question how much time viewers actually spend on the platform. Netflix said engagement remains healthy, reporting 97 billion hours viewed in the first half of 2026, up 2%.
How Is the Street Reacting?
The Street responded anyway.
According to Benzinga Analyst Ratings, several investment banks trimmed their 12-month price target on Netflix following the earnings report.
Guggenheim cut its price target to $75 from $120 while keeping a Buy rating. Pivotal Research went to $70 from $96 at Hold.
UBS trimmed to $115 from $130, Wedbush to $105 from $118 and Barclays to $80 from $85.
| Analyst Firm | Price Target Change | Rating Action |
|---|---|---|
| UBS | $130 → $115 | Maintains Buy |
| Wedbush | $118 → $105 | Maintains Outperform |
| TD Cowen | $112 → $100 | Maintains Buy |
| Bernstein | $100 → $95 | Maintains Outperform |
| Barclays | $85 → $80 | Maintains Equal-Weight |
| Guggenheim | $120 → $75 | Maintains Buy |
| Pivotal Research | $96 → $70 | Maintains Hold |
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