iQIYI stock rating held at Hold by Benchmark on growth concerns

Benchmark maintained a "Hold" rating on iQIYI (NASDAQ:IQ) stock, citing growth concerns following the company's second-quarter 2026 results. The streaming platform's financials fell short of analysts' expectations, with revenue down 6% year-to-date and a significant earnings miss. Benchmark's analysis suggests a sustainable growth recovery remains elusive.

Despite potential benefits from iQIYI's AI and decentralization initiatives, such as lower content costs and improved capital efficiency, Benchmark believes meaningful financial upside from these efforts is not imminent. The company's third-quarter revenue guidance of approximately RMB 6.1 billion was below expectations. While the stock has fallen 36% year-to-date, InvestingPro analysis indicates it may be undervalued at current levels.

However, the competitive video industry and rapid technological changes present ongoing challenges for iQIYI, making it difficult to predict whether the initiatives will lead to durable growth and profitability improvement.