Netflix (NASDAQ:NFLX) projected second-quarter results below Wall Street expectations and announced the planned departure of Chairman Reed Hastings, sending shares down more than 10% intraday Friday.
The company forecast second-quarter 2026 earnings per share of $0.78, below the consensus estimate of $0.84. Revenue was expected to reach $12.57 billion, also trailing analyst expectations of $12.64 billion.
In a shareholder letter released Thursday, Netflix stated that Chairman Reed Hastings would not seek re-election at the company’s annual meeting in June, marking his departure after 29 years with the streaming platform he co-founded, as he intended to focus on philanthropic efforts and other ventures.
Despite the softer outlook, Netflix reported strong first-quarter results. Earnings per share came in at $1.23, exceeding analyst estimates of $0.79 by $0.44. Revenue rose 16.2% year over year to $12.25 billion, also ahead of the $12.18 billion consensus estimate.
The company noted that first-quarter revenue growth of 16% year over year, or 14% on a foreign exchange-neutral basis, was primarily driven by subscriber growth, pricing increases, and expanding advertising revenue.
Netflix reaffirmed its full-year 2026 guidance, projecting revenue between $50.7 billion and $51.7 billion and an operating margin of 31.5%.
