Netflix sinks nearly 10% as Q2 outlook misses and Hastings plans board exit
Netflix shares are sliding about 9.75% to $97.29 after the company’s Q2 2026 outlook came in below Wall Street expectations despite a Q1 revenue beat. The selloff is also being amplified by Reed Hastings’ planned departure from Netflix’s board in June.
1. What’s moving the stock
Netflix is dropping sharply today after issuing weaker-than-expected guidance for the second quarter alongside its quarterly update. Investors are looking past the prior-quarter beat and focusing on a softer profit outlook, while leadership headlines added to uncertainty as co-founder Reed Hastings is set to step down from the board in June when his term expires. (investing.com)
2. The key numbers investors are reacting to
For Q2 2026, Netflix guided to earnings per share of about $0.78 on revenue of about $12.57 billion, both below consensus estimates (roughly $0.84 EPS and $12.64 billion revenue). While Q1 revenue was around $12.25 billion (a beat versus expectations), the market is repricing the stock to the forward outlook rather than the backward-looking quarter. (investing.com)
3. Why the guidance miss matters now
With Netflix trading on expectations for continued monetization improvements (including pricing and advertising momentum), even a modest guidance shortfall can trigger an outsized move when positioning is crowded and valuation is sensitive to growth and margin assumptions. Today’s decline reflects concern that near-term profit delivery may not keep pace with what investors had priced in following recent gains. (investing.com)