Netflix lifts revenue and buybacks as growth momentum slows

what happened

TradingView reports that Netflix generated about $12.6 billion in second-quarter revenue, up 13% year over year. Operating income reached $4.19 billion, an 11% increase, while margins remained stable. Constant-currency growth in Asia and Latin America was 15%, although the company pointed to competition from YouTube. Engagement increased by about 2%, but growth slowed and Emmy wins fell to a decade low.

Netflix is expanding its ad-supported plan, limiting password sharing and raising subscription prices. The company spent $4.7 billion on repurchases in the second quarter, reducing shares outstanding by about 6% since the program began. It also plans to cut roughly 5% of its workforce, or about 800–850 jobs, from a staff of around 16,000. Content spending is being directed toward live events, gaming, podcasts and licensed third-party catalogs, including a distribution agreement with French broadcaster TF1.

TD Cowen maintained a Buy rating and a $100 target, forecasting more than 10% revenue growth from member additions and the ad-tier rollout. Netflix shares fell about 42% between the announcement of its pursuit of Warner Bros. Discovery and the deal’s termination. The stock declined 0.8% to $70.96 on Oct. 9. The average target from 35 analysts is about $94.40, with a range of roughly $57–$135; the P/E is near 21.

why it matters

For markets, the key issue is whether advertising, broader content offerings and buybacks can offset slower engagement growth. Planned layoffs and differing valuation views also highlight scrutiny of Netflix’s efficiency and strategy.

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