Waterdrop Inc., a healthcare and insurance technology company, reported strong second-quarter 2026 results, with total net revenue rising 72.8% year-over-year to CNY 1.45 billion (RMB 1,448 million). Insurance-related revenue alone grew 80.5% YoY, accounting for 92.1% of the company’s total revenue. The company maintained its profitability streak, extending it to 18 consecutive quarters since Q1 2022. Operating profit improved 39.2% quarter-over-quarter to CNY 111 million, while net profit attributable to shareholders rose 27.9% QoQ to CNY 130 million, despite a 10.3% YoY decline after tax and non-recurring items. The company also announced a new 12-month share repurchase program authorizing up to $50 million, with cumulative buybacks totaling approximately $120 million as of August 31, 2026. Cash dividends were approved at $0.03 per ADS, with an aggregate payout of around $10.8 million expected in early November 2026.
Insurance revenue growth was driven by expansions in long-term insurance, preexisting condition products, and disability/smart insurance, with first-year premiums rising 33.4% sequentially. The healthcare segment, including medical crowdfunding and clinical trial solutions, also performed well. Medical crowdfunding saw cumulative donations of nearly 499 million users, raising CNY 74.7 billion and supporting 3.82 million patients. The E-Find platform for clinical trials reported over 1,500 new patient enrollments in Q2, up 54% YoY, with over 17,000 cumulative patients served and 167 new projects signed. The company also filed 88 large language model patents by June 30, 2026, including 10 overseas.
For full-year 2026, Waterdrop guided for more than 40% revenue growth and over 10% operating profit growth. The company’s stock surged 10.75% premarket to $1.13, reflecting its P/E ratio of 5.59 and PEG ratio of 0.12. Cash and liquid investments stood at CNY 2.653 billion as of June 30, 2026, with a current ratio of 1.95. CEO Shen Peng emphasized the company’s focus on integrating AI into core growth drivers rather than standalone monetization, while Director Yuan Wei highlighted shifts toward broader health protection in the insurance market.
Waterdrop’s financial health remains robust, supported by strong revenue diversification across insurance, crowdfunding, and clinical trials. The company’s continued expansion in these segments underscores its position as a leader in healthcare innovation and technology-driven financial services.
