Netflix revenue rises 13.4% to $12.6B in 2nd quarter

• Generative AI workflows used in roughly 300 Netflix productions this year

Netflix reported a 13.4% year-on-year increase in second-quarter revenue to $12.56 billion, driven by membership growth, higher subscription prices and increased advertising revenue.

The US-based streaming company said revenue rose from $11.08 billion in the April-June period a year earlier.

Operating income increased 11% to $4.19 billion, while the operating margin edged down to 33.4% from 34.1%.

Net income rose 8.8% to $3.4 billion from $3.13 billion, while diluted earnings per share increased to 80 cents from 72 cents.

For the third quarter, Netflix forecast revenue of $12.86 billion and net income of $3.45 billion.

The company narrowed its full-year revenue guidance to between $51 billion and $51.4 billion, representing annual growth of 13% to 14%.

Netflix also said advertising revenue is expected to roughly double this year to about $3 billion.

Viewing tops 97B hours

Netflix members watched more than 97 billion hours of content during the first half of 2026, up 2% from the same period last year, according to the company's "What We Watched" report.

Non-English-language productions accounted for more than one-third of total viewing, the company said.

Netflix also announced that the report will be published annually in the first quarter starting in 2027 instead of twice a year, saying the change will allow greater focus on key financial indicators, particularly revenue and operating profit.

The company said its creative partners are increasingly using generative artificial intelligence throughout the production process, from concept development to post-production.

It said generative AI workflows have been used in about 300 Netflix productions this year, with most applications focused on post-production.

According to Netflix, the technology is helping deliver faster, lower-cost and higher-quality results, while enabling productions to include scenes that might otherwise have been omitted.