Netflix released its Q2 2026 financial report today and has reported $12.6 billion in revenue for the quarter, a 13% increase year over year, meeting the company’s expectations.
The growth was attributed to membership growth, pricing, and increased ad revenue. The company says that it’s on track to see similar growth in Q3 and plans to grow by focusing on three key areas: delivering more entertainment value, leveraging technology to improve every aspect of the service, and improving monetization.
Netflix notes that while it looks at time spent streaming when determining engagement numbers, it’s with the understanding that “not all hours are equal.” The company is aiming to improve quality, variety, and quantity of content to ensure a good customer experience. The Q2 content slate included a wide variety of titles including original series like Harlan Coben’s I Will Find You, the K-drama Teach You a Lesson, a rom-com Office Romance starring Jennifer Lopez, the Emmy nominated feature Remarkably Bright Creatures, and the documentary The Crash.
With the growing content library, Netflix continues to leverage technology to make the service more user friendly. The company is using AI to create more efficient workflows for everything from fine tuning discovery tools to managing ad sales.
Those ad sales have become a major part of Netflix’s quarterly revenue. The company is on track to deliver approximately $3 billion in ads revenue in 2026, according to today’s report, citing strong interest in ads for live events like upcoming NFL games.
Going forward, Netflix will be making one change in its reporting. Now, we’ll see annual What We Watched reports, which will be released in the first quarter of the year beginning in 2027, separate from the quarterly earnings reports.
The report says: “The goal of separating the publication of the report from our earnings results is to keep the focus on our primary financial metrics – revenue and operating profit. With this change, we will still report industry-leading title-by-title and total view hours data (including our weekly Top 10 lists for movies and series in more than 90 countries).”
Today’s report follows a price hike in March, the second increase in just over a year.