Netflix reported second-quarter earnings that were slightly above expectations for profit but narrowly missed revenue estimates.

The company posted $12.56 billion in revenue, a 13% increase from the previous year, driven by subscriber growth, higher prices, and rising advertising revenue.

Net income increased to $3.40 billion compared with $3.13 billion a year earlier.

Despite the solid results, Netflix shares fell more than 7% as investors reacted negatively to the company’s future earnings outlook, CNBC has reported.

Netflix maintained its growth forecast for 2026 while slightly narrowing its expected annual revenue range.