17 July 2026
If you are covering Netflix's latest financial results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
"With a lot of nervousness about the impact of the World Cup on Netflix, investors have been justified for their downbeat assessment of the company with its latest results. Netflix's latest engagement survey was okay compared to previous editions, but not great in the grand scheme of things and will now move to being carried out annually, instead of every six months. Whenever you take away a data point from investors when results aren't as good as they have been you will get punished by the market.
"Netflix saw revenues increase 12%, but the guidance going forward is for a deceleration to 11%. Investors have got accustomed to Netflix beating expectations and raising guidance so this is a disappointment. Ultimately, Netflix operates in a tech industry where the focus is on more of the pure AI names - Netflix is experimenting with AI content, but is hardly what we would describe as an AI winner at this stage.
"Netflix is entering a period of reinvention. Every few years it has a run of down quarters, and this looks to be no different as it aims to keep its disruptor status and the rest of the legacy media industry fighting for second place. Certainly, losing Reed Hastings takes a little shine off the company as he has been instrumental in the past at reinventing the company and the product it offers consumers. The company is looking at new types of content such as video podcasts and shorter form content, but has a fight on its hands with YouTube in this regard for viewer eyeballs.
"It remains a quality business operating in a market that isn't currently in its favour, so for now investors may need to stomach a bit of pain before Netflix comes good again."
