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Streaming giant Netflix (NFLX - Free Report) reported mixed second-quarter 2026 results last week. The company narrowly beat its bottom-line estimate but fell slightly short of revenue expectations.
Consequently, NFLX shares pulled back 7.3% on the trading day following the release — a level where the stock has largely hovered since its July 16 announcement — reflecting investor disappointment over the revenue miss and narrowed revenue guidance for 2026.
Meanwhile, Netflix bought back $4.7 billion of its shares in the second quarter — its largest quarterly share repurchases on record — demonstrating strong underlying financial health despite incurring higher cash tax payments tied in part to the Warner Bros. termination fee.
Amid this backdrop, the recent pullback in NFLX’s share price may offer a golden opportunity for exchange-traded fund (ETF) investors seeking diversified exposure to the world’s leading streaming powerhouse. ETFs provide a balanced route to capture Netflix’s long-term growth potential while buffering against the single-stock volatility that often follows quarterly releases.
Before diving into the specific ETFs, let us dig deeper into NFLX’s overall second-quarter performance.
A Brief Analysis of NFLX’s Q2 Results
Netflix’s second-quarter 2026 earnings beat the Zacks Consensus Estimate by 1.3%. Its revenues missed the consensus mark by 0.1%.
On a year-over-year basis, the company delivered double-digit revenue growth, driven by membership growth, pricing and increased ad revenues.
In terms of engagement quantity, in the first half of 2026, Netflix members watched more than 97 billion hours, reflecting 2% growth year over year. This was slightly faster than the 1.5% growth in 2025, despite the competitive impact of the Winter Olympics and the World Cup this year.
To expand the variety of its entertainment offering, NFLX has been launching new types of content like video podcasts, creators like Danny Go! and Salish & Jordan Matter, and cloud TV games, a trend it aims to continue in the near future as well, to boost viewership.
The company has made notable progress on its cloud-first video game strategy this year, including the addition of several new titles, where the market opportunity is nearly $150 billion in consumer spend, excluding China and Russia.
Netflix has also been witnessing positive growth in its kids section. Netflix Playground, which is NFLX’s app for kids games, has seen 3X growth in daily players since its launch. As a result, engagement in kids' mobile games has risen 600% year over year.
Netflix remains on track to deliver approximately $3 billion in ad revenues by the end of this year.
The company’s earlier announced partnerships with leading publishers including Condé Nast, Hearst, and People are set to bring their lifestyle content to members in the United States and several other countries beginning in August.
This fund, with a market cap worth $557.4 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Of these, Netflix accounts for roughly 9% of the fund’s shares.
FNGS has rallied 10.7% over the past year and charges 58 basis points (bps) in fees.
Vanguard Communication Services Index Fund ETF Shares (VOX - Free Report)
This fund, with net assets worth $5.7 billion, provides exposure to 112 companies that provide communications services primarily through fixed-line, cellular, wireless, high-bandwidth, and/or fiber-optic cable networks. Of these, Netflix accounts for 4.21% of the fund’s shares.
VOX has risen 3.4% over the past year and charges 9 bps in fees.
FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (AIUP - Free Report)
This fund, with assets under management worth $4.08 million, provides exposure to 14-20 U.S. large-cap companies included in the S&P 500 Index. Of these, Netflix accounts for 4.37% of the fund’s shares.
AIUP has rallied 7.8% over the past year and charges 70 bps in fees.
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Image: Bigstock
ETFs in Spotlight Following Netflix's Q2 Earnings Beat & Weak '26 View
Key Takeaways
Streaming giant Netflix (NFLX - Free Report) reported mixed second-quarter 2026 results last week. The company narrowly beat its bottom-line estimate but fell slightly short of revenue expectations.
Consequently, NFLX shares pulled back 7.3% on the trading day following the release — a level where the stock has largely hovered since its July 16 announcement — reflecting investor disappointment over the revenue miss and narrowed revenue guidance for 2026.
Meanwhile, Netflix bought back $4.7 billion of its shares in the second quarter — its largest quarterly share repurchases on record — demonstrating strong underlying financial health despite incurring higher cash tax payments tied in part to the Warner Bros. termination fee.
Amid this backdrop, the recent pullback in NFLX’s share price may offer a golden opportunity for exchange-traded fund (ETF) investors seeking diversified exposure to the world’s leading streaming powerhouse. ETFs provide a balanced route to capture Netflix’s long-term growth potential while buffering against the single-stock volatility that often follows quarterly releases.
Before diving into the specific ETFs, let us dig deeper into NFLX’s overall second-quarter performance.
A Brief Analysis of NFLX’s Q2 Results
Netflix’s second-quarter 2026 earnings beat the Zacks Consensus Estimate by 1.3%. Its revenues missed the consensus mark by 0.1%.
On a year-over-year basis, the company delivered double-digit revenue growth, driven by membership growth, pricing and increased ad revenues.
In terms of engagement quantity, in the first half of 2026, Netflix members watched more than 97 billion hours, reflecting 2% growth year over year. This was slightly faster than the 1.5% growth in 2025, despite the competitive impact of the Winter Olympics and the World Cup this year.
To expand the variety of its entertainment offering, NFLX has been launching new types of content like video podcasts, creators like Danny Go! and Salish & Jordan Matter, and cloud TV games, a trend it aims to continue in the near future as well, to boost viewership.
The company has made notable progress on its cloud-first video game strategy this year, including the addition of several new titles, where the market opportunity is nearly $150 billion in consumer spend, excluding China and Russia.
Netflix has also been witnessing positive growth in its kids section. Netflix Playground, which is NFLX’s app for kids games, has seen 3X growth in daily players since its launch. As a result, engagement in kids' mobile games has risen 600% year over year.
Netflix remains on track to deliver approximately $3 billion in ad revenues by the end of this year.
The company’s earlier announced partnerships with leading publishers including Condé Nast, Hearst, and People are set to bring their lifestyle content to members in the United States and several other countries beginning in August.
ETFs in Spotlight
MicroSectors FANG+ ETN (FNGS - Free Report)
This fund, with a market cap worth $557.4 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Of these, Netflix accounts for roughly 9% of the fund’s shares.
FNGS has rallied 10.7% over the past year and charges 58 basis points (bps) in fees.
Vanguard Communication Services Index Fund ETF Shares (VOX - Free Report)
This fund, with net assets worth $5.7 billion, provides exposure to 112 companies that provide communications services primarily through fixed-line, cellular, wireless, high-bandwidth, and/or fiber-optic cable networks. Of these, Netflix accounts for 4.21% of the fund’s shares.
VOX has risen 3.4% over the past year and charges 9 bps in fees.
FINQ FIRST U.S. Large Cap AI-Managed Equity ETF (AIUP - Free Report)
This fund, with assets under management worth $4.08 million, provides exposure to 14-20 U.S. large-cap companies included in the S&P 500 Index. Of these, Netflix accounts for 4.37% of the fund’s shares.
AIUP has rallied 7.8% over the past year and charges 70 bps in fees.