Abstract
Bilibili Inc. will report quarterly results on May 19, 2026 Pre-Market, with investors watching revenue momentum, margins, and adjusted EPS as the company navigates advertising strength, user monetization improvements, and a game pipeline that is still normalizing.Market Forecast
Based on the latest quarter-to-date forecasts, Bilibili Inc.’s current-quarter revenue is projected at 7.45 billion RMB, implying 7.79% year-over-year growth, while adjusted EPS is estimated at 1.13 RMB per ADS, suggesting 91.74% year-over-year growth; EBIT is estimated at 193.93 million RMB, indicating a 254.27% year-over-year increase. Forecast gross profit margin and net profit margin are not disclosed, but the prior quarter’s margin profile establishes a higher-quality revenue mix into this print.The previous report and recent commentary point to resilient advertising and value-added services as the key revenue engines this quarter, supported by improving monetization efficiency and content formats that lift ad demand and user spending. Among operating segments, advertising remains the most promising near-term growth driver, with last quarter revenue of 3.04 billion RMB and widely cited year-over-year gains, underpinned by better ad targeting, infrastructure upgrades, and healthy advertiser demand.
Last Quarter Review
Bilibili Inc. delivered revenue of 8.32 billion RMB, a gross profit margin of 37.03%, net profit attributable to the parent company of 0.51 billion RMB, a net profit margin of 6.17%, and adjusted EPS of 1.94 RMB per ADS, with revenue up 7.59% year over year and adjusted EPS up 81.31% year over year. The company’s operating leverage and expense discipline helped convert improving monetization into GAAP profitability and a meaningfully higher adjusted EPS versus the year-ago quarter.By business line, value-added services produced 3.26 billion RMB last quarter, advertising contributed 3.04 billion RMB, mobile games generated 1.54 billion RMB, and IP-derived products and others delivered 477.16 million RMB; advertising and value-added services both grew year over year, while mobile games showed mixed year-over-year trends given timing of new launches.
Current Quarter Outlook
Core Revenue Engines: Advertising and Value-Added Services
Advertising is positioned to be the key growth engine again this quarter, given the platform’s improvements in ad targeting, delivery infrastructure, and creator productivity enhancements that lift ad effectiveness. The last quarter’s 3.04 billion RMB contribution from advertising reflects broad-based demand across categories such as gaming, electronics, and internet services, with commentary indicating steady year-over-year growth. Against this backdrop, the revenue outlook of 7.45 billion RMB implies continued traction in monetization without an overreliance on any single advertiser vertical, which helps stabilize growth as campaign budgets rotate through the quarter.Value-added services, anchored by live streaming and paid engagements, also underpin the top line with 3.26 billion RMB last quarter, and it continues to benefit from the ongoing optimization of content formats and community interactions that encourage incremental spending. This category is often less cyclical than direct-response advertising and can provide a buffer if ad demand temporarily moderates in certain sectors. In combination, the two segments shape a diversified revenue base that supports the company’s margin framework, with prior-quarter gross margin of 37.03% serving as a reference point for what the mix can achieve when ad yield and user spending remain healthy.
The interplay between these two engines matters for margin quality in the current quarter. Advertising typically contributes higher incremental margins due to scalable delivery and lower content cost burden, while value-added services can drive more stable recurring spend from engaged users. Together, they provide both directional growth and earnings visibility, particularly if operating expense control stays disciplined. With EBIT forecast at 193.93 million RMB, a meaningful year-over-year improvement, the setup suggests a quarter where operating leverage can reassert itself if top-line trends track to plan.
Most Promising Business: Advertising’s Near-Term Upside
Advertising appears most likely to surprise to the upside this quarter, supported by improved performance algorithms, better inventory management, and a wider pool of quality creators whose content increases surface areas for brand and performance ad placements. Last quarter’s 3.04 billion RMB baseline, combined with widely observed year-over-year growth, gives a solid starting point for this quarter’s comps. As higher-quality creators increasingly adopt AI-enabled tools to enhance production, the platform’s ad ecosystem can benefit through better engagement metrics, longer watch times, and more effective ad matching.The near-term catalyst for advertising is the continued efficiency lift in ad delivery and the optimization of campaign measurement that appeals to brand advertisers seeking measurable outcomes. While the timing of seasonal campaigns can shift, the structural improvements in targeting and content curation support consistent fill rates and CPM stabilization. If these dynamics persist through the quarter, advertising’s incremental contribution should bolster the company’s earnings path, aligning with the strong adjusted EPS forecast of 1.13 RMB per ADS.
An additional tailwind is the ongoing improvement in advertiser mix, including internet services and AI-related demand that tends to value engaged, tech-savvy audiences. This mix shift should further stabilize pricing and reduce reliance on any single advertising vertical. The result is a more resilient ad revenue trajectory that, if sustained, could continue to lift overall margin quality and underpin the EBIT upturn signaled by forecasts.
Stock Price Drivers: Profit Trajectory, Games Normalization, and Expense Discipline
The most visible stock driver into this print is the earnings trajectory, where forecasts call for adjusted EPS of 1.13 RMB per ADS, up 91.74% year over year, and EBIT of 193.93 million RMB, up 254.27% year over year. Investors will scrutinize how much of this improvement is driven by ad monetization versus cost control and whether the margin gains are sustainable into the second half. Given last quarter’s net profit margin of 6.17% and gross margin of 37.03%, the market will look for signals that profitability is broadening beyond one-time efficiencies.Games normalization is the second driver. While last quarter’s mobile games revenue of 1.54 billion RMB provided a solid contribution, the timing of new launches and content updates can still create quarter-to-quarter variability. Commentary in recent months has emphasized that steady ad growth has offset delays in new games; however, even a modest acceleration in game launches or content cadence could re-rate expectations for the second half. Investors will be attentive to any disclosures on the pipeline’s visibility and whether upcoming titles align well with the platform’s user base.
Expense discipline remains a key focus, particularly in the context of investments in AI and creator tools. While these investments can temporarily weigh on operating expenses, the medium-term payoff can include better content quality, higher engagement, and improved ad yield. The market’s reaction will likely depend on evidence that operating spend is translating into repeatable revenue uplift and margin resiliency. The balance between maintaining growth momentum and safeguarding profitability will be central to how shares trade following the release.
Analyst Opinions
The balance of recent opinions is bullish versus bearish, with positive commentary outweighing negative calls within the current review window. A notable development is Morgan Stanley’s upgrade to Overweight with a price target raised to $31 on April 13, 2026, citing improving visibility in the games pipeline, increasing benefits from AI adoption across creator productivity and ad efficiency, and a more attractive valuation after prior share price declines. On the same day, Morgan Stanley also highlighted that a better mix of ad demand and creator tools is reinforcing the path to revenue growth, supporting the view that advertising can carry near-term upside.While there are neutral stances in the period, the explicitly negative view within the timeframe is less represented than the constructive calls, tilting the ratio toward bullish. The market has also observed a favorable shift in consensus posture as reflected in updates to average ratings and targets in early to mid-March and April, contemporaneous with the company’s stronger-than-expected prior-quarter results. In practice, the bullish camp emphasizes that advertising’s steady improvement can offset variability in games and that targeted investments in AI should enhance both content output and monetization over time, improving the durability of earnings.
From an earnings-preview perspective, the bullish majority expects Bilibili Inc. to meet or modestly exceed top-line expectations around 7.45 billion RMB and to demonstrate further progress on profitability, evidenced by the strong year-over-year estimates for adjusted EPS and EBIT. The crux of the positive thesis rests on operating leverage and higher-quality revenue mix, particularly if ad demand remains firm across core verticals. Should management reiterate disciplined expense control and provide clearer signals on the games pipeline cadence, bullish analysts believe the setup can support a constructive trajectory for both revenue growth and margins through the remainder of 2026.
