Bilibili Inc. (NASDAQ:BILI) stock gained Thursday after the Chinese video platform reported better-than-expected fiscal second-quarter 2026 results.
Revenue rose 8% year over year to $1.17 billion, or 7.94 billion yuan. That topped analyst estimates of $1.16 billion.
Adjusted earnings totaled 23 cents per American depositary share, beating Wall Street’s estimate of 18 cents.
Bilibili User Engagement Remains Strong
Bilibili is often compared with Alphabet Inc.’s (NASDAQ:GOOGL) YouTube because of its focus on long-form, user-generated videos and livestreaming.
Average daily active users increased 7% to 116.5 million. Meanwhile, average daily time spent was 113 minutes, driving total user time spent up by 14% year over year.
Advertising Growth Offsets Gaming Weakness
Mobile gaming revenue fell 14% to $205.1 million. The decline reflected a difficult comparison with the prior-year performance of “San Guo: Mou Ding Tian Xia.”
However, advertising revenue jumped 28% to $461.4 million as Bilibili improved its advertising products and efficiency.
Value-added services revenue rose 5% to $437.3 million, helped by premium memberships and other services. Revenue from intellectual property derivatives and other businesses increased 2% to $66.3 million.
Margins and Profitability Improve
Gross margin expanded to 37.2% from 36.5% a year earlier. Adjusted net income rose 25% to $103.7 million, or 703.6 million yuan.
Bilibili held $3.58 billion in cash, cash equivalents, time deposits and short-term investments as of June 30.
CEO Rui Chen said Bilibili’s high-quality content and interest-driven community continued to strengthen engagement. Daily active users reached 117 million, monthly active users climbed to 371 million and total time spent rose more than 14% year over year.
Chen said quality and emotional connection have become increasingly important as digital content grows but consumer attention remains ‘scarce’. He added that artificial intelligence could help Bilibili improve precision, expand its reach and support future growth.
Chief Financial Officer Sam Fan said the quarter marked Bilibili’s 16th consecutive period of gross margin improvement. He added that net profit rose 55% as revenue growth and stronger operating leverage supported earnings.
Fan said Bilibili would maintain investment discipline, repurchase shares and focus on creating sustainable long-term shareholder value.
Bilibili Stock Performance
BILI Price Action: Bilibili shares rose 2.20% to $16.51 in Thursday’s premarket trading, according to Benzinga Pro.
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