iQiyi Inc. (NASDAQ: IQ) saw its stock price surge 5.38% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results, which exceeded analyst expectations on key metrics.

The Chinese streaming giant reported adjusted earnings per ADS of 0.31 Renminbi, surpassing the FactSet consensus estimate of 0.29 Renminbi. This represents a significant beat of 6.9% over analyst projections. Additionally, iQiyi's total revenue for Q1 reached 7.19 billion Renminbi (US$990.3 million), slightly above the FactSet estimate of 7.09 billion Renminbi.

Despite a 9% year-over-year decrease in total revenues, iQiyi demonstrated sequential growth with total revenues and operating income increasing by 9% and 20% respectively compared to the previous quarter. The company's CEO, Yu Gong, highlighted the strong performance of iQiyi's long-form dramas and the notable growth in viewership and engagement for its micro dramas. The positive financial results and the company's strategic content focus appear to have boosted investor confidence, driving the pre-market stock price increase.