What to expect from Netflix’s earnings after the bell

• Netflix is on track to reach $3 billion in advertising revenue in 2026, doubling its ad revenue year over year from the cheaper, ad-supported tier launched recently
• The company expects content amortization to rise 13% but noted higher content spending is weighted toward the first half of the year due to timing of releases
• Investor concerns echo 2022 when Netflix lost subscribers, with current worries focused on engagement metrics and reports showing viewership drops after first seasons of series

Netflix Earnings Preview Summary

Key Event: Netflix reports second-quarter earnings Thursday after the bell, with an analyst call scheduled for 4:45 p.m. ET.

Expected Results (period ended June 30):

• Revenue: $12.59 billion estimated
• Earnings per share estimate not fully specified in article

Main Focus Areas:

*Ad-Supported Tier Performance:* Wall Street remains highly interested in Netflix's progress with its cheaper, ad-supported subscription option. The company previously announced it's on track to reach $3 billion in advertising revenue in 2026, representing a year-over-year doubling.

*Engagement Metrics:* Investors are concerned about platform engagement following reports showing viewership drops after first seasons of Netflix series. These concerns echo 2022 sentiment when the company experienced subscriber losses.

*M&A Activity:* The market will watch for updates on potential deals amid media industry consolidation. Netflix explored acquiring film and streaming assets from Warner Bros. Discovery late last year before withdrawing, sparking speculation about future acquisitions.

*Content Strategy:* Netflix indicated in April that content amortization would rise 13%, with higher spending weighted toward the first half of the year. The growth rate is expected to moderate in the second half.

Market Context: Netflix faces intensified competition from traditional streamers and tech platforms like YouTube and TikTok. The stock has fallen approximately 40% over the past year, accelerated by the failed WBD acquisition attempt.

Analyst View: Keybanc suggests the company will likely focus on content and product diversification to improve perceived quality and monetization per viewing hour.