iQIYI’s Q2‑2025 results showed a modest top‑line beat but a shortfall on the bottom line. The company posted ≈ $1.2 billion in revenue, roughly 3 % above the consensus estimate of $1.18 billion and representing a small quarter‑over‑quarter lift (≈ 3 %), yet still down about 5 % year‑over‑year as the Chinese market remains price‑sensitive. By contrast, adjusted earnings per share came in at about $0.03, missing the $0.04 consensus forecast and marking a decline versus the prior quarter’s $0.04 EPS. The earnings miss reflects higher content‑cost amortisation and a slower‑than‑expected conversion of subscriber growth into net revenue.
From a trading perspective, the revenue beat keeps the stock’s growth narrative intact, but the earnings miss and YoY revenue dip add pressure on the price. Short‑term bias is mildly bearish—the market may price in a near‑term correction, especially if the stock is still trading near its Q2‑2024 high. However, the top‑line resilience suggests the longer‑term trend remains positive, so a patient, swing‑trading approach (e.g., buying on any pull‑back to support around the 20‑day moving average) could be justified if the broader Chinese streaming sector stabilises and the company’s cost‑structure improvements start to translate into higher margins. Keep an eye on upcoming subscriber‑growth guidance and any forward‑looking commentary on content‑spending, as those will set the next directional move.