Monitor the Q3 2026 guidance call for signs of revenue stabilization and whether the tax charge recurs. The sequential improvement in operating cash flow is a positive, but the YoY revenue decline and widening GAAP loss argue for caution. The stock may drift lower on the large EPS miss and weak top-line trends.
Price Chart
Executive Summary
iQIYI reported Q2 2026 revenue of RMB6.29B (-5% YoY) and a GAAP net loss of RMB287.5M, more than double the year-ago loss of RMB133.7M. The headline results missed consensus estimates by a wide margin (GAAP EPS of -$0.31 vs consensus -$-0.09), driven by a RMB193.6M discrete tax charge at a mainland subsidiary, while membership and advertising revenue both declined. Sequential improvement in operating cash flow (RMB339.6M vs negative RMB12.7M a year ago) and a small share buyback program partially mitigate, but the overall picture is a deteriorating business with falling revenue and widening losses.
Key Financial Metrics
Key Facts
- Total revenues RMB6.29B, down 5% YoY
- GAAP net loss attributable to iQIYI RMB287.5M vs RMB133.7M loss in Q2 2025 — loss more than doubled
- GAAP diluted EPS was -$0.31 (RMB0.30) vs consensus -$0.09, a 235.9% miss
- Membership services revenue RMB4.01B, down 2% YoY
- Online advertising revenue RMB1.25B, down 2% YoY
- Content distribution revenue jumped 56% YoY to RMB681.5M on cash transaction growth
- Operating cash flow positive RMB339.6M vs negative RMB12.7M in the prior year period; free cash flow RMB319.6M
- Income tax expense surged to RMB219.8M from RMB27.2M, driven by a discrete RMB193.6M charge at a Chinese mainland subsidiary
- Company repurchased ~21.8M ADSs for US$24.1M under its US$100M buyback program through June 30, 2026
- Non-GAAP diluted net loss per ADS was -$0.13 vs non-GAAP diluted net income of $0.02 in Q2 2025
Financial Impact
Revenue declined 5% YoY; GAAP net loss widened to RMB287.5M (vs -RMB133.7M); EPS surprise -235.9%. Discrete tax charge of RMB193.6M inflated the loss.
Risk Factors
- Sustained membership revenue decline as competition from short-form video platforms intensifies
- Further discrete tax adjustments or regulatory crackdowns in China
- Unexpected content cost increases suppressing margin recovery
- Foreign exchange volatility (RMB/USD) impacting reported USD financials
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3346633 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 23, 2026 4w ago | Press Release | $1.01 $1.04 | ▲ +2.97% | ▲ +3.05% | $0.8770 (−13.17%) |
Aug 19, 2026 9w ago | 6-K | $1.13 $1.03 | ▲ +9.29% | ▲ +8.45% | $0.8770 (+22.39%) |
Aug 18, 2026 9w ago | Press Release | $1.23 $1.13 | ▲ +8.13% | ▲ +8.34% | $0.8770 (+28.70%) |
Jul 31, 2026 12w ago | Press Release | $1.27 | awaiting T+1 | — | $0.8770 (−30.94%) |
Jul 2, 2026 16w ago | 6-K | $1.01 $1.07 | ▲ +5.94% | ▲ +5.07% | $0.8770 (−13.17%) |
Jun 11, 2026 19w ago | Institutional Cluster | $1.03 $1.03 | · 0.00% | ▼ −0.54% | $0.8770 (−14.85%) |
May 18, 2026 23w ago | 6-K | $1.11 $1.10 | ▲ +0.90% | ▲ +1.94% | $0.8770 (+20.99%) |
May 18, 2026 23w ago | Press Release | $1.13 $1.11 | ▲ +1.77% | ▲ +1.12% | $0.8770 (+22.39%) |
Apr 23, 2026 26w ago | Press Release | $1.20 $1.17 | ▼ −2.50% | ▼ −3.28% | $0.8770 (−26.92%) |
Mar 30, 2026 30w ago | 6-K | $1.35 $1.38 | ▲ +2.22% | ▲ +1.47% | $0.8770 (−35.04%) |
US Market Status
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