Netflix Shares Plunge on Weak Q2 Guidance After Initial 8% Earnings Rally

Netflix Inc stock tumbled following weak second-quarter guidance signaling a likely revenue decline, reversing much of an 8% post-earnings surge from April 16. The company beat Q1 expectations with revenue near $12.16-12.18 billion, EPS around $0.76-0.78, and a guided 32.1% operating margin, but flagged higher risks from 10% increased film/TV spending in 2026 and paused buybacks tied to acquisitions. Investors pivoted to the soft outlook, amplifying short-term volatility and downside risk as noted in Schwab Network analysis.