iQIYIIQ -4.83%38 Gross Margin % is 15.94% as of Mar. 2026, which is 98% above its 10-year median of 8.05. GuruFocus rates IQ with a GF Score™ of 38/100 and a GF Value™ of $2.25 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 953 Media - Diversified companies, iQIYI ranks worse than 77.96% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. iQIYI's Gross Profit for the
three
months ended in Mar. 2026 was $144 Mil. iQIYI's Revenue for the
three
months ended in Mar. 2026 was $903 Mil. Therefore, iQIYI's Gross Margin % for the quarter that ended in Mar. 2026 was 15.94%.
The historical rank and industry rank for iQIYI's Gross Margin % or its related term are showing as below:
IQ'
s Gross Margin % Range Over the Past 10 Years
Min: -8.58 Med: 8.05 Max: 27.52
Current: 18.82
During the past 11 years, the highestGross Margin % of iQIYI was 27.52%. The lowest was -8.58%. And the median was 8.05%.
IQ's Gross Margin % is ranked worse than 77.96% of 953
companies
in the Media - Diversified industry
Industry Median: 38.9
vs IQ: 18.82
iQIYI had a gross margin of 15.94% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for iQIYI was 29.70% per year.
iQIYI (NAS:IQ) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
iQIYI had a gross margin of 15.94% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
iQIYI Gross Margin % Related Terms
iQIYI Gross Margin % Historical Data
* Premium members only.
The historical data trend for iQIYI's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Entertainment subindustry, iQIYI's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
iQIYI Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, iQIYI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where iQIYI's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
iQIYI (IQ) has a Gross Margin % of 15.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on iQIYI and its competitors. This is 98% above median its historical median of 8.05. According to the industry distribution chart, iQIYI ranks #743 out of 953 companies in the Media - Diversified industry, placing it in the top 78%.
Is iQIYI's Gross Margin % too high?
iQIYI's current Gross Margin % of 15.94% is 98% above median its 10-year median of 8.05. The Media - Diversified industry median Gross Margin % is 38.90. iQIYI's value of 15.94% is 59% below this industry median. Based on the distribution chart, iQIYI ranks #743 out of 953 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, iQIYI has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does iQIYI's Gross Margin % compare to AMC and RSVR?
According to the Media - Diversified industry distribution chart, iQIYI ranks #743 out of 953 companies for Gross Margin %. This places iQIYI in the lower half of its industry. The industry median Gross Margin % is 38.90. iQIYI's value of 15.94% is 59% below this benchmark. While the company's 10-year median is 8.05 vs. the industry median of 38.90, iQIYI has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. iQIYI's current Gross Margin % of 15.94% is 59% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on iQIYI and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. iQIYI's current Gross Margin % is 15.94%, which is 98% above median its own 10-year median of 8.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is iQIYI stock overvalued right now?
Based on GuruFocus' analysis, iQIYI (IQ) is currently considered Possible Value Trap. The stock's GF Value™ is $2.25, compared to a current price of $0.96 — trading 57.3% below its estimated fair value. The current Gross Margin % is 15.94%, which is 98% above median its 10-year median of 8.05 and 59% below the Media - Diversified industry median of 38.90. iQIYI's overall GF Score™ is 38/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For iQIYI (IQ), the current Gross Margin % is 15.94% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is iQIYI (IQ) Overvalued in 2026?
Based on GuruFocus' analysis, iQIYI stock appears to be undervalued.
The current stock price of $0.96 is trading 57.3% below its estimated GF Value™ of $2.25.
GuruFocus considers iQIYI to be Possible Value Trap.
Key valuation signals for IQ:
Gross Margin %: 15.94% (98% above median its 10-year median of 8.05)
GF Value™: $2.25 vs. price of $0.96 (57.3% below fair value)
Industry Position: 59% below the Media - Diversified median (#743 of 953)
No single metric tells the full story. See the IQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iqiyi is a leading streaming video-on-demand company in China that generates revenue mostly through a subscription basis. The platform also provides user-generated content to nonpaying users, monetized through ads. The company self-produces much of the subscription content and also generates revenue through content distribution, gaming, and IP licensing. Iqiyi competes directly with Tencent Video, Alibaba's Youku, ByteDance's MangoTV, and Bilibili. The company is 45% and 5% owned by Baidu and Xiaomi, respectively.
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