Netflix, Inc. (NFLX) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to the Netflix Q2 2026 earnings interview. I'm Spencer Wang, VP of Finance and Capital Markets. Joining me today are co-CEOs Ted Sarandos and Greg Peters and CFO Spence Neumann. As a reminder, we will be making forward-looking statements and actual results may vary. We'll now take questions submitted by the analyst community. We'll begin with a question on our guidance and our business outlook. And this question comes from Steve Cahill of Wells Fargo. What is the main driver of FX neutral revenue growth slowing from 12% year-over-year in 2Q to 11% year-over-year as the guidance for the third quarter suggests? Spence, do you want to take that? Yeah, sure, sure. Thanks, Steve. So look, we don't manage the business on a quarter to quarter basis. Our goal is to sustain healthy revenue and profit growth. We talk about that in our letter every quarter. We're guiding, as you say, to 12% revenue growth in Q3 reported, 11% FX neutral. The Q3 revenue drivers are very similar to Q2. It's primarily growth in our subscription revenue from increases in memberships and pricing. and higher ads revenue. We continue to see healthy acquisition and retention trends on the membership side and our recent price adjustments are going well on the pricing side. Now recall, there is a little bit of quarter to quarter choppiness and growth because last year was more back half weighted. So that may be a little bit of what you see in the deceleration, but honestly, it's not what we managed to, we managed to the full year. And halfway through the year, we're making strong progress against our goals and we're tracking to our financial plan for 2026. We expect to deliver another strong year with, as we saw, as you see in the guide, 13% to 14% top line growth for the full y...