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Iqiyi
(NASDAQ:IQ)
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Rating:46Neutral
Price Target:
$0.99
▲(6.45% Upside)
Action:Reiterated
Date:09/19/26
The score is held down primarily by weakening financial performance (contracting revenue, margin compression, and renewed losses with less robust cash flow than 2023–2024) and a technically weak longer-term trend (below key moving averages with negative MACD). Partially offsetting these are improving Q2 profitability/cash flow trends and supportive H2 guidance centered on AI-driven efficiency, plus a somewhat improved balance sheet versus prior years.
Positive Factors
Market leadership across long-form and short-form content
Leading positions across several content categories indicate strong platform reach, brand relevance and content execution. The rapid rise in short-form share broadens iQIYI's competitive footprint and can support durable audience engagement and monetization over coming quarters.
Negative Factors
Revenue contraction and renewed losses
Shrinking revenue combined with substantial margin compression indicates that the current business is not yet converting scale and content investment into durable earnings. Continued losses can restrict reinvestment flexibility and make future performance more dependent on successful operational changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership across long-form and short-form content
Leading positions across several content categories indicate strong platform reach, brand relevance and content execution. The rapid rise in short-form share broadens iQIYI's competitive footprint and can support durable audience engagement and monetization over coming quarters.
Read all positive factors
Iqiyi (IQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$981.03M
Dividend YieldN/A
Average Volume (3M)8.31M
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth-3.13%
EPS Growth-1084.25%
CountryUS
Employees4,603
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.89
Shares Outstanding530,582,300
10 Day Avg. Volume5,780,750
30 Day Avg. Volume8,312,435
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)0.97
Price to Sales (P/S)0.47
P/FCF Ratio1.33K
Enterprise Value/Market Cap2.50
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.53
Enterprise Value/Ebitda13.18
Forecast
1Y Price Target
$1.43Price Target Upside53.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.48
Revenue Forecast (FY)$25.13B
Iqiyi Business Overview & Revenue Model
Company Description
Operating under the iQIYI brand, iQIYI, Inc. is a prominent provider of online entertainment services throughout the People's Republic of China. Its extensive portfolio of offerings encompasses internet video content, online gaming, live streaming...
How the Company Makes Money
iQIYI primarily makes money through a mix of subscription-based and advertising-based monetization of its video streaming platform, alongside content distribution and other online entertainment services.
1) Membership (subscriptions): A significa...
Iqiyi Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call highlighted multiple positive operational and strategic developments: modest sequential revenue growth, substantial narrowing of non-GAAP operating loss, material AI/AIGC milestones (including the first licensed AIGC internet feature film), strong creator ecosystem traction, market leadership across content categories, and robust international membership growth (notably Brazil and Mexico). Offsetting these positives were short-term pressures including a 4% sequential decline in membership revenue, a 19% fall in other revenues, flat sequential advertising, continued high content costs, and execution/collectability risks tied to the AI/decentralization transition and a large receivable. On balance, the measurable improvements in profitability, clear AI-driven efficiency gains, #1 market positions, and strong international and micro-content momentum outweigh the near-term revenue seasonality and execution risks.Positive Updates
Revenue and Improving Profitability
Total revenues of RMB 6.3 billion, up 1% sequentially. Non-GAAP operating loss narrowed 8% sequentially from RMB 148.6 million in Q1 to RMB 30.3 million in Q2, approaching breakeven. Net cash provided by operating activities rose to RMB 339.6 million from RMB 186.4 million in Q1. Cash, cash equivalents, restricted cash and short-term investments totaled RMB 4.1 billion at quarter end. Company executed share repurchases (~21.6M ADS for USD 24.1M) under a USD 100M program.
Negative Updates
Membership Revenue Decline (Seasonality)
Membership services revenue was RMB 4.0 billion, down 4% sequentially (company attributed to seasonality), signaling short-term pressure on the largest revenue line.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Improving Profitability
Total revenues of RMB 6.3 billion, up 1% sequentially. Non-GAAP operating loss narrowed 8% sequentially from RMB 148.6 million in Q1 to RMB 30.3 million in Q2, approaching breakeven. Net cash provided by operating activities rose to RMB 339.6 million from RMB 186.4 million in Q1. Cash, cash equivalents, restricted cash and short-term investments totaled RMB 4.1 billion at quarter end. Company executed share repurchases (~21.6M ADS for USD 24.1M) under a USD 100M program.
Read all positive updates
Company Guidance
The company guided that its strategic shift to decentralization and all‑in AI should begin materially improving content costs, revenue quality, profitability and cash flow in H2 and beyond, while reporting Q2 metrics of total revenue RMB 6.3bn (+1% QoQ), membership revenue RMB 4.0bn (‑4% QoQ), online advertising RMB 1.2bn (flat QoQ), content distribution RMB 681.5m (+9% QoQ) and other revenue RMB 344.9m (‑19% QoQ); content cost was RMB 3.8bn (+2% QoQ) and total operating expenses RMB 1.1bn (‑6% QoQ), with non‑GAAP operating loss narrowing 8% QoQ to RMB 30.3m (from RMB 148.6m), net cash from operations rising to RMB 339.6m (from RMB 186.4m), cash and short‑term investments of RMB 4.1bn, a USD 636.6m loan receivable, and an active USD 100m repurchase program (21.6m ADS bought for ~USD 24.1m to date); operational AI/creator metrics highlighted uploads up 30%–500% QoQ, June short‑form market share up from 25% in March to 50% (The Fireman peaked ~60%), AIGC accounting for >50% of the micro portfolio and unique visitors, 16 AIGC short dramas launched YTD, AI yielding up to 10x rough‑cut efficiency and 70%–90% cost/time cuts for AIGC production, short‑form per‑minute costs >50% lower and production timelines 30%–50% shorter, and strong international traction with membership revenue +40% YoY overall (Brazil +215%, Mexico +150%, Arabic +85%, C‑drama +40%, micro‑drama membership +300% YoY).Iqiyi Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.97B | 27.29B | 29.23B | 31.87B | 29.00B | 30.55B |
| Gross Profit | 4.66B | 5.75B | 7.27B | 8.77B | 6.68B | 3.04B |
| EBITDA | 186.45M | 14.11B | 15.54B | 17.25B | 14.34B | 12.10B |
| Net Income | -836.02M | -206.31M | 764.06M | 1.93B | -136.21M | -6.19B |
Balance Sheet | ||||||
| Total Assets | 45.44B | 46.68B | 45.76B | 44.59B | 46.05B | 42.47B |
| Cash, Cash Equivalents and Short-Term Investments | 4.13B | 4.67B | 4.47B | 5.38B | 7.92B | 4.35B |
| Total Debt | 14.12B | 15.25B | 14.19B | 15.29B | 22.53B | 17.57B |
| Total Liabilities | 32.86B | 33.37B | 32.39B | 32.41B | 39.70B | 36.80B |
| Stockholders Equity | 12.66B | 13.32B | 13.37B | 12.09B | 6.25B | 5.19B |
Cash Flow | ||||||
| Free Cash Flow | 139.00M | 9.72M | 1.94B | 3.25B | -340.34M | -6.35B |
| Operating Cash Flow | 304.38M | 102.92M | 2.11B | 3.35B | -70.57M | -5.95B |
| Investing Cash Flow | -675.27M | -318.51M | -2.44B | -1.74B | 265.98M | 1.26B |
| Financing Cash Flow | -477.96M | 1.04B | -1.37B | -4.29B | 4.47B | -2.96B |
Iqiyi Technical Analysis
Negative
0.93
Price Trends
1.07
Negative
1.09
Negative
1.33
Negative
Market Momentum
>-0.01
Negative
45.39
Neutral
60.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.07, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 60.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQ.
Iqiyi Risk Analysis
Iqiyi disclosed 96 risk factors in its most recent earnings report. Iqiyi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iqiyi Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $294.02B | 21.81 | 47.96% | ― | 17.62% | 34.80% | |
71 Outperform | $187.33B | 22.34 | 7.87% | 1.38% | 5.31% | -23.96% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | $981.03M | -7.45 | -6.38% | ― | -3.13% | -1084.25% | |
46 Neutral | $43.98M | -3.08 | -27.24% | ― | 6.28% | -410.92% |
* Communication Services Sector Average
IQ
Iqiyi
0.99
-1.22
-55.16%
CNVS
Cineverse
1.81
-1.51
-45.47%
DIS
Walt Disney
108.58
-1.00
-0.92%
NFLX
Netflix
70.46
-51.07
-42.02%
Iqiyi Corporate Events
iQIYI Posts Wider Q2 2026 Loss But Strengthens Content Leadership and Cash Flow
Aug 19, 2026
For the quarter ended June 30, 2026, iQIYI reported total revenue of RMB6.29 billion, down 5% year on year, with modest declines in membership and advertising income offset by a 56% surge in content distribution sales. Despite a sequential improve...
iQIYI Names New Chief Financial Officer to Steer Next Growth Phase
Jul 2, 2026
iQIYI, Inc., a major player in China’s online entertainment video industry, operates a technology-driven platform that delivers professionally produced and other video content to a large user base. The company monetizes its audience through ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.