China's Weibo Q1 revenue lifted by ad growth, but costs weigh on profit

Weibo

28/05/2026 10:09

Overview
China social media platform's Q1 revenue rose 6% yr/yr, driven by advertising growth
Adjusted EPS for Q1 fell yr/yr; net income also declined
Value-added services revenue dropped 11%, mainly due to weaker game-related business

Outlook
Company did not provide specific guidance for the current or future periods

Result Drivers
ADVERTISING DEMAND - Growth in advertising and marketing revenue was driven by favorable foreign exchange and higher demand from internet services, automobile, and local services sectors
VAS DECLINE - Value-added services revenue fell 11% yr/yr, primarily due to less revenue contribution from game-related business
HIGHER AD COSTS - Total costs and expenses rose 8% yr/yr, mainly due to increased ad production cost and marketing expense

Company press release: ID:nPn9ssv5Fa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$421.3 mln
 
Q1 Adjusted EPS
 
$0.34
 
Q1 EPS
 
$0.14
 
Q1 Adjusted Net Income
 
$91.9 mln
 
Q1 Net Income
 
$34.7 mln
 
Q1 Operating Income
 
$110.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Weibo Corp is HK$73.38, about 20% above its May 28 closing price of HK$61.15
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)