REAL-TIME GLOBAL RESEARCH
IQIYI Inc | Asia Pacific Risk Reward Update
Research evidence excerpt
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M
Update
August 18, 2026 04:22 PM GMT
Morgan Stanley Asia Limited+
IQIYI Inc | Asia Pacific
Rebecca Xu
Equity Analyst
Risk Reward Update
What’s Changed
IQIYI Inc (IQ.O)
From
To
Price Target
US$1.13
US$1.10
Bull Case
US$2.10
US$2.00
Base Case
US$1.13
US$1.10
Bear Case
US$0.80
US$0.70
Updated Components
EPS
Investment Thesis
Bull Base Bear Scenarios
IQIYI Inc (IQ.O, IQ US)
China Internet and Other Services | China
Stock Rating
Industry View
Price target
Shr price, close (Aug 17, 2026)
52-Week Range
Equal-weight
Attractive
US$1.10
US$1.33
US$2.84-0.95
Fiscal Year Ending
12/25 12/26e 12/27e 12/28e
Risk Reward for IQIYI Inc (IQ.O) has been updated
EPS (Rmb)**
Prior EPS (Rmb)**
(0.21)
Reason for change
Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
framework
** = Based on consensus methodology
e = Morgan Stanley Research estimates
We see slower core revenue recovery in 2Q26 due to fierce competition:
0.02
0.47
0.52
0.79
0.90
• Revenue -5% YoY (slight miss consensus), higher content distribution
revenue offsetting weaker membership services and ads.
• Non-GAAP OP loss of Rmb30mn (vs. consensus -Rmb2mn).
However, we expect continuous saving in content thanks to AI-related content
innovation in the coming quarters.
Forecasts changes:
• We trim our 2026-28 revenue forecasts by 2%, 3% and 4%, respectively, on
weaker membership services and lower other revenue.
• We lower our 2027-28 cost of revenues forecasts by 2% and 4%,
respectively, thanks to AI-related content innovation.
• Net profit forecasts were trimmed by 8%, 8% and 13%, respectively, in 202628.
PT changes
• Our PT is trimmed to US$1.10 (was US$1.13), derived from 10x 2027e P/E
(unchanged).
• Bull-case value falls to US$2.0 (was US$2.1), derived from 12x 2027e P/E
(unchanged).
• Bear-case value declines to US$0.7 (was US$0.8), derived from 12x 2027e P/
E (unchanged).
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