iQIYI Inc. reported a wider-than-expected loss for the second quarter of 2026, with adjusted earnings per share at -$0.30 against analyst expectations of -$0.09, marking a $0.21 per-share miss. Revenue totaled $6.29 billion, down 0.47% from estimates of $6.32 billion, though it reflected a sequential improvement from the first quarter.
The company’s shares fell 3.01% in premarket trading to $1.29, extending declines from the prior close of $1.33. The stock has traded within a 52-week range of $0.95 to $2.84, with the current price near the lower end. iQIYI’s market capitalization stands at $1.28 billion.
Gross profit margin over the last twelve months as of Q1 2026 was 18.84%, while the debt-to-equity ratio remained at 1.09. The company repurchased approximately 21.6 million American Depositary Shares for $24.1 million as of June 30 under a $100 million buyback program authorized through September 2027.
Overseas operations showed strong growth, with membership revenue rising 40% year-over-year. Regional gains included a 215% increase in Brazil, a 150% rise in Mexico, and an 85% jump in Arabic-speaking markets. Micro-drama membership revenue overseas surged more than 300% year-over-year. Daily average creator uploads across content types increased by 30% to 500% in Q2 compared to Q1, reaching 500 works per day.
iQIYI’s share of the place-supported short-form drama market doubled from 25% in March to 50% in June, securing the top position for the first time. The company also highlighted its performance at the Magnolia Award in June, where its titles won 14 of 23 awards, including 10 of 11 in the drama category.
Management emphasized the role of artificial intelligence in content production. CEO Yu Gong stated that AI is expected to reduce costs, shorten production cycles, and enable effects previously difficult to achieve through live action, while remaining a core differentiator for premium content. Chief Content Officer Xiaohui Wang noted that AI lowers technical barriers but does not diminish the importance of creativity and editorial judgment.
