iQIYI Inc

iQIYI delivered a disappointing fourth quarter, missing consensus estimates by wide margins as its Q4 2025 results fell short of Wall Street expectations on both the top and bottom lines. The Chinese streaming platform reported revenue of $998.07 million, growing a modest 2.7% year over year but missing the $6.74 billion consensus estimate by 85.20%, while earnings per share of $0.02 trailed the $0.06 consensus by 73.62%. The primary pressure on profitability came from an 8% rise in cost of revenues, driven by an 11% surge in content costs as the company expanded its original drama lineup, compressing operating margin from 4% to just 1%. A bright spot emerged in content distribution revenue, which surged 94% to $115.71 million on increased cash transactions, even as online advertising slipped 6% amid macro headwinds and membership revenue held flat. Analysts have noted that iQIYI requires disciplined risk management given its exposure to regulatory and geopolitical pressures. Looking ahead, management is leaning on AI-driven content development, overseas expansion, and its nascent iQIYI Land experience business to reinvigorate growth through 2026.