Aug 18, 2026 earnings call — AI-driven decentralization and AIGC content shift
Total revenues were RMB 6.3 billion and non-GAAP operating loss narrowed to RMB 30.3 million, approaching breakeven.
Revenue $0.9B (est $0.9B) · EPS $-0.03 (est $-0.04)
Key quotes
"First, we are shifting from centralized media to a decentralized creator and user-centric social media ecosystem."
"Second, we are taking an all-in approach on AI to revolutionize both live action production and pure AIGC."
"Notably, membership revenue from Brazil and Mexico surged by over 215% and 150% year over year, respectively."
Analyst Q&A 4
AI strategy and company priorities
Q (Xueqing Zhang · CICC): How will iQIYI's business model develop with AI, and what are the key strategic and operational priorities?
A: Management said iQIYI is a beneficiary of AI and is making a strategic transformation focused on decentralization and going all-in on AI. They said premium content remains core, AI will lower production costs and shorten production cycles, and their iQIYI ID Creator Center shows positive initial progress with more content expected next year.
"So to capture this opportunity, we are making some strategic transformation for our business, mainly focused on two main pillars: Decentralization, which means transforming from the media-centric platform to a decentralized content ecosystem and also all-in AI." — Chang Yu
AIGC plan by content type
Q (Lincoln Kong · Goldman Sachs): What is iQIYI's overall AIGC strategy and the plan for each content category?
A: They said AI lowers basic production costs but does not replace creativity, so they use AI to improve economics while keeping storytelling and aesthetic judgment. They will prioritize long-form video while also supporting micro-dramas and micro animation, use a revenue-sharing model, and have already released 16 AIGC short-form dramas plus several Internet feature films while using AI to expand animation and children's content.
"First of all, we believe AI reduces the basic costs and barriers to production, but it doesn't lower the bar for creativity and judgment." — Chang Yu
Core competitiveness and creator value
Q (Yi Jing Wei · Citi): In the AI era and with decentralization, what is iQIYI's core competitiveness and what value do you offer creators?
A: They said competition now centers on end-to-end capabilities from concept to commercialization and listed skills like talent, storytelling, industrialized production, compliance, distribution, and monetization as their built strengths. For creators, they offer audience reach, production expertise, rich IP and licensing, and a seven-pillar creator support system including iQIYI ID, NadouPro, offline centers, training, funding support, AI theater, and dedicated customer service.
"We believe in the AI era, video industry competition centers on end-to-end capabilities, which is from concept to commercialization." — Chang Yu
Overseas growth and Thailand playbook
Q (Guangfa): What is the latest overseas development and how can Thailand's operating experience be applied to other markets?
A: They reported overseas membership revenue grew 40% year-over-year in Q2 and said they remain profitable on a managerial accounting basis; Thailand is a relatively mature market and a proving ground. They gave Brazil and Mexico as examples where membership revenue increased 215% and 150% year-over-year, said they classify markets into mature growth and potential markets with different goals, and explained they will replicate core operating capabilities like using C-drama, local partnerships, and AI for translation while making market-specific adaptations.
"We categorize our overseas markets into mature growth and potential markets, where mature markets will aim for stable profitability, growth markets focus on accelerated [ trading ] revenue with disciplined investments." — Chang Yu