Netflix stock is down approximately 13% year-to-date despite the streaming giant delivering strong first-quarter 2026 earnings that beat analyst expectations on both revenue and profit. The stock’s decline reflects investor concerns about the company’s forward guidance and slowing growth momentum ahead.
Quick Facts
- Q1 2026 revenue reached $12.25 billion, up 16.2% year-over-year, topping the consensus estimate of $12.18 billion
- Diluted earnings per share came in at $1.23, nearly doubling the prior-year quarter
- Netflix guided for Q2 2026 revenue of $12.57 billion and EPS of $0.78, both falling short of Wall Street expectations
- Stock fell 9% in after-hours trading on April 16 following the earnings release, weighed down by weak forward guidance
The disconnect between Netflix’s strong Q1 results and its declining stock price reflects a broader market pattern where growth companies face pressure when future outlooks disappoint, even if current performance impresses. Net income for the quarter reached $5.28 billion, with free cash flow at $5.09 billion—both up significantly year-over-year, though boosted partly by a $2.8 billion payment from Paramount Skydance related to a deal termination.
Netflix’s Q2 guidance projected only 13% revenue growth, down from the 16% growth achieved in Q1. The company reiterated its full-year 2026 revenue forecast of $50.7 billion to $51.7 billion, representing 12% to 14% growth. Wall Street had been anticipating stronger guidance, particularly after Netflix raised prices in late March, a move that would begin flowing through results in the second quarter.
The stock’s year-to-date decline also reflects a broader pullback from its June 2025 peak, when Netflix shares traded near $134. As of early June 2026, the stock closed around $82.18, representing a roughly 40% decline from those highs. Alongside the earnings release, Netflix announced new content initiatives while co-founder Reed Hastings announced his exit from the board, signaling a leadership transition at the company.
Sources
- Variety — Q1 2026 revenue, earnings per share, net income, free cash flow, and after-hours stock reaction
- Yahoo Finance — Year-to-date stock decline, peak pricing, and Q2 guidance figures
- MarketBeat — Q1 2026 earnings announcement date and EPS figures
- Dealroom — Year-to-date stock performance and comparison to June 2025 peak
