iQIYI Inc

iQIYI delivered a mixed second quarter for fiscal 2026, beating badly on the bottom line while falling well short of revenue expectations. The Chinese streaming giant posted an adjusted loss per ADS of $0.03, clearing the consensus estimate of $0.09 by 64.68%, yet revenue of $930.98 million trailed the $6.32 billion consensus by 85.27% and slipped 5.2% from a year ago, weighed down by softness in its core membership and online advertising segments. The headline profit beat was clouded by a discrete enterprise income tax charge and related interest totaling $28.67 million at a Chinese mainland subsidiary, which pushed the GAAP net loss to $42.57 million from $19.80 million in the year-ago period. On the brighter side, content distribution revenue surged 56% year-over-year to $100.92 million, operating cash flow turned positive at $50.28 million compared to negative $1.89 million a year earlier, and the company repurchased approximately 21.8 million ADSs for $24.10 million under its share buyback program, even as its stock fell sharply following the report.