Netflix Q2 EPS Beat But Engagement Concerns Linger: Ackman Stake, Ads $3B Target, $80 Support
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- Netflix reported a Q2 2026 revenue of $12.56 billion and a diluted EPS of $0.80, beating consensus estimates by $0.01.
- Despite the earnings beat, investor concerns grew over weaker Q3 revenue guidance of $12.86 billion and decelerating user engagement of 97 billion hours, representing a 2% year-over-year growth.
- The company aims to offset engagement challenges by scaling its advertising revenue toward a $3 billion target for 2026 and maintaining a full-year free cash flow guidance of $12.5 billion.