Abstract

iQiyi Inc. will release second-quarter results on August 18, 2026 Pre-MKt; this preview highlights consensus expectations on revenue, profitability and EPS, and frames how member services and advertising trends could shape near-term performance.

Market Forecast

For the current quarter, the company’s forecast indicates total revenue of 6.34 billion US dollars with a year-over-year change of -4.03%, EBIT of -78.33 million US dollars with a year-over-year change of 1.05%, and EPS of -0.17 with a year-over-year change of 28.57%. Forecast gross margin, net profit or margin, and adjusted EPS guidance were not disclosed. The main business is expected to be led by member services, with advertising stabilizing at a lower base as content releases pace the demand cadence. The segment with the largest growth potential remains member services, driven by content release cycles and pricing optimization.

Last Quarter Review

In the previous quarter, revenue was 6.23 billion US dollars, gross margin was 15.94%, GAAP net profit attributable to the parent company was -0.30 billion US dollars with a net profit margin of -4.73%, and adjusted EPS was -0.31, with a year-over-year change of -263.16%. Membership services delivered 4.20 billion US dollars, online advertising services 1.24 billion US dollars, content distribution 0.36 billion US dollars, and other revenue 0.43 billion US dollars. A notable highlight was resilient subscriber monetization amid a contracting ad market. Main business highlights included member services accounting for 67.46% of revenue, while online advertising represented 19.93%.

Current Quarter Outlook

Main business momentum

Member services should remain the core earnings engine as long-form drama premieres and variety shows refresh the slate, supporting engagement and conversion. The forecast implies a modest revenue contraction, which likely reflects a softer macro impact on advertising and seasonal normalization after holiday-driven viewing. As content spend is paced, operating leverage in distribution and bandwidth may support margin containment even if headline revenue declines.

Most promising business

Member services appears best positioned for improvement given the relatively stable willingness to pay among core users and ongoing packaging of premium content. If pricing optimization is sustained and churn remains controlled, the path to higher average revenue per membership could offset a mixed ad market. The runway for incremental upsell from VIP tiers and event-driven hit content offers upside to near-term revenue per subscriber.

Stock-price swing factors this quarter

Three factors look most relevant for the share price reaction: the balance of content investment versus gross margin, the direction of advertising recovery signals into the second half, and any commentary on cost discipline. A narrower operating loss than anticipated could lift sentiment if EBIT tracks better than the -78.33 million US dollars forecast. Conversely, a weaker ad trajectory or a heavier-than-expected content schedule could pressure margin expectations and dampen the outlook.

Analyst Opinions

Across recent commentaries, the prevailing stance is cautious, pointing to limited visibility in advertising and a measured approach to content spending; the ratio of cautious to bullish opinions skews toward cautious. Analysts emphasize the importance of stabilizing ad yields and subscriber ARPU, noting that margin trajectory hinges on programming ROI and bandwidth efficiency. The majority view expects a muted revenue print with focus shifting to second-half content batches and any signals on cost control to frame the path toward profitability.