Q3 growth guidance of 11.7% is the lowest in at least five quarters; shares fell nearly 9% after the report

Flagship originals lose up to 85% of viewers in later seasons; K-drama 'Teach You a Lesson' on track to become Netflix's No. 2 Korean title after 'Squid Game'

Netflix's growth is visibly decelerating. On July 16, the company reported second-quarter 2026 revenue of $12.56 billion and net income of $3.4 billion — in line with Wall Street expectations — but guided to just 11.7% revenue growth for the third quarter, sending shares down nearly 9% in after-hours trading. It is the company's lowest quarterly growth forecast in at least five quarters.

넷플릭스, 2분기 매출 125억 6,000만 달러…‘시즌2 징크스’에 성장 둔화 경고음...희망은 K콘텐츠
넷플릭스, 2분기 매출 125.6억 달러로 시장 기대에 부합했지만, 3분기 성장률 전망을 5개 분기 만의 최저치인 11.7%로 낮춰. 간판작들이 후속 시즌에서 시청자를 최대 85%까지 잃는 ‘시즌2 징크스‘가 부각, 주가가 9% 급락. 희망은 K콘텐츠. ‘가르쳐 줄게’ 등 K-콘텐츠는 여전히 흥행 견인
K엔터테크허브 (K-EnterTech Hub)Jung Han

The underlying cause is the maturing of the streaming market. With less room to add new subscribers, Netflix is shifting its growth engine toward price increases, advertising, and live content, and its growth equation is being rewritten from 'subscriber counts' to 'watch time and revenue per member.' Add a 'season two slump' in which flagship originals shed as much as 85% of their audience, and investors are now reacting more sharply to engagement metrics than to the headline results themselves.