Netflix slides 3% ahead of Q2 earnings with $0.79 EPS target

Netflix shares extended their decline ahead of the streaming giant's Q2 earnings report on Thursday, with analysts forecasting EPS of $0.79.

Wall Street firms cut price targets on Netflix on Monday, citing valuation concerns as the stock continues its yearlong slide, according to analysts tracked by Bloomberg. At least two firms lowered their targets ahead of the July 16 report.

The consensus estimate of $0.79 per share would represent a year-over-year decline from the $1.00 reported in Q2 2025, reflecting pressure from slower subscriber growth and rising content costs. Revenue is expected to come in at $9.8 billion, up about 8% from a year earlier, though below the double-digit growth rates the company posted through much of the pandemic era.

Netflix shares have fallen roughly 12% over the past 12 months, underperforming the broader market as investors question the company's ability to sustain growth in an increasingly crowded streaming landscape. The stock closed at $487.32 on Monday, down about 3% from the prior session.

The Q2 report will be the first since Netflix began rolling out its ad-supported tier more broadly, a strategy aimed at capturing price-sensitive consumers and boosting average revenue per user. Analysts will be watching for subscriber additions in the ad tier and any update on the company's push into live programming, including its recent deal to stream NFL games on Christmas Day.

The earnings come at a pivotal moment for Netflix as it seeks to convince investors that its advertising push and password-sharing crackdown can reignite growth. The company's guidance for Q3, typically released alongside the Q2 report, will be the key signal for whether management sees the turnaround gaining traction. Shares could see a swing of 6% to 8% in after-hours trading depending on the results and forward outlook, options market data shows.

This article is for informational purposes only and does not constitute investment advice.