iQIYI (NasdaqGS:IQ) has posted Q1 2026 results with revenue of C¥6.2b and a basic EPS loss of C¥0.31, while trailing twelve month figures show revenue of C¥26.3b and a basic EPS loss of C¥0.71. Over recent quarters, revenue has ranged between C¥6.2b and C¥7.2b, with quarterly basic EPS moving between a profit of C¥0.19 and losses such as C¥0.31. This highlights how earnings have oscillated around the path back toward profitability. With margins still in the red but losses compressed compared to earlier years, this update keeps attention on how efficiently the business can convert its scale into more sustainable profitability.

See our full analysis for iQIYI.

With the latest numbers on the table, the next step is to see how they line up against the main market narratives around iQIYI's growth potential, profitability path, and risk profile.

Losses Widen Again To C¥295m On Q1

• Net income for Q1 2026 came in at a loss of C¥294.6m, compared with a much smaller loss of C¥5.8m in Q4 2025 and a profit of C¥182.1m in Q1 2025, while trailing twelve month net income moved from a profit of C¥290.9m at Q1 2025 to a loss of C¥683.0m at Q1 2026.
• Consensus narrative expects earnings to reach C¥817.6m by around 2029 with margins rising from roughly negative 0.8% to 2.9%. This contrasts with the latest trailing twelve month loss of C¥683.0m and highlights how much improvement would be needed if that view plays out.
  • Analysts in that consensus scenario are looking for revenue to be about C¥28.2b by 2029, compared with C¥26.3b on the latest trailing twelve month basis. Current results therefore show only a modest revenue gap but a large earnings gap.
  • The fact that trailing twelve month basic EPS shifted from a profit of C¥0.30 at Q1 2025 to a loss of C¥0.71 at Q1 2026 means the recent earnings trend still runs against the improvement path implied in the consensus view.

Revenue Stays Around C¥6.2b While Growth Forecasts Are Low

• Quarterly revenue over the last six reported periods has moved in a tight band between C¥6.2b and C¥7.2b, and forecast revenue growth of 0.8% per year also sits below the referenced US market growth rate of 11.7% per year.
• Bulls argue that a broader content and offline ecosystem can support stronger top line momentum. However, the figures provided show trailing twelve month revenue easing from C¥29.2b at Q4 2024 to C¥26.3b at Q1 2026 and a baseline forecast of only 0.8% annual growth.
  • The bullish case talks about micro dramas, premium content and offline experiences supporting higher recurring revenues, while the revenue band of roughly C¥6.2b to C¥7.2b per quarter so far points to a business that is still waiting for that next leg of growth to appear in the reported numbers.
  • Because consensus forecasts point to revenue of around C¥28.2b by 2029, which is close to the latest trailing twelve month C¥26.3b, the data suggests more of a gradual revenue path rather than the rapid expansion that bullish investors sometimes focus on.

Have a closer look at how the optimistic case lines up with these reported trends in the full bull thesis for iQIYI 🐂 iQIYI Bull Case.

Cheap P/S Multiple Versus Peers Despite Ongoing Losses

• At a share price of US$1.11 and a P/S ratio of 0.3x compared with 2.3x for peers and 1.4x for the wider US Entertainment industry, the stock is described as trading about 54.4% below an indicated DCF fair value of US$2.44 even though trailing twelve month basic EPS is a loss of C¥0.71 and trailing twelve month net income is a loss of C¥683.0m.
• Bears highlight that the company is still loss making and that forecast revenue growth of 0.8% per year trails the 11.7% figure cited for the broader market, which they see as a risk for how long a low P/S multiple might persist.
  • Even with losses reportedly shrinking at an annualized rate of 61.4% over the past five years and forecasts calling for earnings growth of 77.32% per year with a move to profitability within three years, the latest trailing twelve month loss of C¥683.0m shows that profitability has not yet turned the corner in the reported figures.
  • The cautious narrative also points to heavy content costs and intense competition, and the sequence of quarterly losses since Q2 2025, apart from the small loss close to breakeven in Q4 2025, fits with the idea that improving margins is still a work in progress.

If you are weighing whether these loss figures justify such a low multiple, it helps to see how skeptics frame the downside in the full bear thesis for iQIYI 🐻 iQIYI Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for iQIYI on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and concern feels familiar, use the data to test it for yourself and move quickly while sentiment is still forming. A good place to start is by checking the 3 key rewards

See What Else Is Out There

iQIYI is still reporting losses, facing modest revenue forecasts and lagging growth expectations compared with the broader US market, which raises clear questions about future returns.

If you want stocks where current fundamentals already look stronger, move quickly and check the 54 high quality undervalued stocks to find companies the market may be mispricing today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.