Netflix's expanding live sports slate is becoming a material cost line, with live programming expected to absorb just over 5% of 2026 content spend while generating only about 1% of view hours. The streamer's additions to content assets jumped 32% year over year to $9.8 billion in the first half of 2026, outpacing the 11% rise in content amortization, while capital expenditure climbed 46% to $415 million. Second-quarter operating margin contracted 70 basis points to 33.4%, and free cash flow fell to $1.5 billion from $2.3 billion. Netflix narrowed 2026 revenues to $51.0-$51.4 billion and maintained a 31.5% operating margin target versus 29.5% in 2025, but the full-year target implies a fourth-quarter margin near 27% in a quarter loaded with NFL holiday games and the Tyson Fury-Anthony Joshua bout on Dec. 11. Disney's Sports segment operating income fell 17% to $858 million in third-quarter fiscal 2026 as programming and production costs rose 10% to $3.05 billion, while Amazon's advertising revenues grew 26% year over year to $19.8 billion in the second quarter of 2026. Netflix shares have plunged 28% year to date, and the Zacks Consensus Estimate for 2026 earnings is pegged at $3.59 per share, up 41.9% from the previous year.
Netflix IncLive sports costs drove content-asset additions up 32%, capex up 46%, margin contraction to 33.4%, and lower free cash flow.
Walt Disney CompanyDisney's Sports segment operating income fell 17% to $858M as programming and production costs rose 10%.
Amazon.com Inc