Netflix reported revenue of $12.6 billion for the second quarter of 2026, marking a 13.4% year-on-year increase, supported by subscriber growth, higher subscription prices and a steadily expanding advertising business. Net income for the quarter stood at $3.4 billion.
The company recorded double-digit revenue growth across all regions, with quarterly revenue exceeding $4 billion in Europe, the Middle East and Africa (EMEA) and crossing $1.5 billion for the first time in both Latin America (LATAM) and Asia-Pacific (APAC).
Netflix reaffirmed that it expects its advertising business to generate around $3 billion in revenue in 2026. The company said advertiser commitments from its U.S. upfront negotiations are nearing completion, while continued investments in AI-powered advertising tools, the Netflix Ads Suite and programmatic capabilities are helping strengthen its ad offering. Live programming, including the 2027 FIFA Women's World Cup, NFL games, WWE and MLB events, is also attracting increased marketer interest.
Alongside its earnings, Netflix released its latest What We Watched report, revealing that members watched more than 97 billion hours of content during the first six months of 2026—the highest six-month viewing period in the platform's history. Viewing increased 2% year-on-year, with non-English content contributing more than one-third of total watch time.
India recorded its strongest-ever half-year on the platform, led by Dhurandhar, which attracted 37 million views to become Netflix's most-watched non-English film during the period. Other strong performers included Accused, Made in Korea, and Taskaree: The Smuggler's Web Season 1.
The company also highlighted its growing use of generative AI across nearly 300 titles in 2026, primarily for post-production workflows such as visual effects, shot planning, crowd enhancement and world-building. The Indian title Glory was among the productions that incorporated AI-assisted workflows.
On the advertising front, Netflix is expanding programmatic access to Pause Ads and live inventory while noting that revenue generated from ad-supported subscribers is moving closer to that of its standard subscription tier. The company also increased its sales and marketing investments, with spending rising 15.5% year-on-year during the quarter.
Beyond streaming, Netflix said its gaming business continues to grow. Its cloud gaming titles FIFA World Cup: Launch Edition and Unhinged have become its biggest launches to date, while Netflix Playground, the company's children's gaming app, has tripled its daily active users since its April launch.
Looking ahead, Netflix expects 12% revenue growth in the third quarter and maintained its full-year outlook, forecasting $51-$51.4 billion in annual revenue, driven by continued subscriber gains, pricing actions and a sharp increase in advertising revenue.
