AMC Networks’ second quarter was marked by continued revenue declines and a sharp drop in operating margin, missing Wall Street’s expectations. Management attributed the underperformance primarily to a combination of persistent declines in affiliate fees, softness in advertising, and the timing of major content licensing deals. CEO Kristin Dolan acknowledged that the company’s streaming subscriber growth lagged internal hopes, citing “geopolitical events and high-profile sports programming” as factors drawing attention away from AMC’s offerings. The addition of a new CFO and the resolution of a system integration issue in advertising were also highlighted as operational milestones during the quarter.
Is now the time to buy AMCX? Find out in our full research report (it’s free for active Edge members).
AMC Networks (AMCX) Q2 CY2026 Highlights:
- Revenue: $547.5 million vs analyst estimates of $554.3 million (8.8% year-on-year decline, 1.2% miss)
- Adjusted EPS: -$0.28 vs analyst estimates of -$0.08 (significant miss)
- Operating Margin: 2.9%, down from 10.7% in the same quarter last year
- Market Capitalization: $496.2 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AMC Networks’s Q2 Earnings Call
- Sean Diffley (Morgan Stanley) asked about the competitive dynamics of the Netflix deal; CEO Kristin Dolan explained there were multiple bidders and the co-exclusive structure was chosen to maximize value and brand association.
- Doug Bobrow (JPMorgan) pressed on how co-exclusivity with Netflix would impact AMC+ engagement; Dolan and President Kim Kelleher emphasized increased engagement and strategic alignment with AMC+’s core audience.
- Doug Bobrow (JPMorgan) followed up on AMC’s live sports and sports-adjacent content strategy; Dolan and Chief Content Officer Dan McDermott highlighted the success of wrestling and docuseries, but clarified there are no plans to acquire major sports rights.
- Steven Cahall (Wells Fargo) questioned the revenue recognition and margin implications of the Walking Dead licensing deal; CFO Hozefa Lokhandwala detailed the revenue recognition schedule and expected high-margin contribution.
- Michael Morris (Guggenheim Securities) asked about improving affiliate revenue trends; Dolan and Kelleher pointed to new distribution agreements and early signs of stabilization in video subscriber declines.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will watch (1) the impact of The Walking Dead’s Netflix launch on both licensing revenue and AMC+ engagement, (2) the effectiveness of new affiliate agreements in slowing revenue declines, and (3) the trajectory of digital advertising growth amid continued linear softness. Additionally, operational execution in international markets and progress on new content licensing deals will serve as key indicators of AMC Networks’ ability to adapt within a changing media landscape.
AMC Networks currently trades at $12.04, up from $10.25 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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