Sohu.com Limited (SOHU) AI Stock Analysis
SOHU AI stock analysis summary
AI ResearchSohu.com Limited (SOHU) is a China-based online media, video, and gaming company. While trailing twelve month revenue stands at $599.2M, annual revenue has trended downward with a 5-year CAGR of -4.9% from FY2020 to FY2025. The company maintains a sizable liquidity buffer with $833.0M in cash and short-term investments against a market cap of $383.3M.
- Market cap
- $383.3M
- Revenue (TTM)
- $599.2M
- P/E
- 1.5x fwd 9.1x
- 1Y return
- -10.5% S&P 500 16.8%
- Avg. target
- $19.50 52.9% vs last close
Bull case
- Sohu holds $833.0M in cash and short-term investments as of June 30, 2026, exceeding its market cap of $383.3M.
- The stock trades at a price-to-book ratio of 0.3x and a forward P/E of 9.1x, below the US-listed Communication Services peer median forward P/E of 14.1x.
- Management repurchased $54.2M of shares in FY2025, helping drive a 5-year share count decline of 35.4%.
Bear case
- Annual revenue has fallen at a 5-year CAGR of -4.9%, declining from $835.6M in FY2021 to $584.3M in FY2025.
- Core operations remain unprofitable, posting an operating margin of -9.6% in FY2025 and -13.5% over the trailing twelve months.
- Analysts forecast net losses ahead, projecting an EPS of -$1.32 for FY2026 and -$1.94 for FY2027.
What Sohu.com does
Sohu.com Limited provides online media, video, and gaming products and services for PC and mobile users across China. Its core media offerings include news and information distributed via the Sohu News APP, m.sohu.com, and www.sohu.com, alongside video streaming through the Sohu Video APP, tv.sohu.com, and the ifox PC application. The company also develops, operates, and licenses PC and mobile online games, spanning massive multiplayer online role-playing games, casual games, and strategy games, as well as mobile game distribution. In addition, Sohu operates focus.cn, an online real estate information platform, and 17173.com, a dedicated gaming information portal.
Growth and profitability
Sohu's annual revenue contracted from $835.6M in FY2021 to $584.3M in FY2025, recording a 5-year revenue CAGR of -4.9%. Gross margin stood at 77.5% in FY2025, while operating margin was -9.6%. Net income swung from -$100.3M in FY2024 to $394.1M in FY2025, driven up to an EPS of $10.21. Over the trailing twelve months, revenue totaled $599.2M with an operating margin of -13.5% and a net profit margin of 38.1%. For the latest quarter ended June 30, 2026, revenue increased 7.3% year-over-year, while quarterly earnings declined 75.7%.
Balance sheet and cash flow
As of June 30, 2026, Sohu held $833.0M in cash and short-term investments, with total assets of $1.62B and shareholders' equity of $1.28B. Its current ratio was 3.02. In FY2025, operating cash flow was -$4.8M and free cash flow was -$14.5M, alongside capital expenditures of $9.7M. Sohu utilized $54.2M for share buybacks during FY2025, contributing to a 5-year share count change of -35.4%.
Valuation and performance
With a market cap of $383.3M and an enterprise value of -$453.5M, Sohu trades at a trailing P/E of 1.5x and a forward P/E of 9.1x. These compare to a trailing P/E of 16.2x and forward P/E of 14.1x for the median of its US-listed Communication Services peers. The stock's price-to-book ratio is 0.3x, and price-to-sales is 0.6x compared to the peer median of 0.8x. Over the past year, the stock returned -10.5% while the S&P 500 (SPY) returned 16.8%. Over five years, the stock is down 39.9% versus an 83.0% gain for SPY.
What analysts expect
Wall Street coverage includes 2 Strong Buy ratings, with 0 Buy, 0 Hold, and 0 Sell ratings. The mean price target is $19.50, representing an upside of 52.9% above the last close of $12.75. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $547.9M and an EPS of -$1.32. For the following fiscal year, 1 analyst projects revenue of $561.4M and EPS of -$1.94. Sohu has beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 16, 2026.
Key risks and what to watch
- Free cash flow has been negative in four of the last five fiscal years, including -$14.5M in FY2025.
- Quarterly earnings fell 75.7% year-over-year in the latest quarter ended June 30, 2026.
- Short interest represents 440.3% of the float, pointing to elevated trading volatility.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SOHU AI stock analysis
This page is an AI-written research summary of Sohu.com Limited (SOHU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SOHU income statement, SOHU balance sheet, SOHU key metrics, SOHU analyst forecast, SOHU chart. See the SOHU stock overview for the latest quote and news.
SOHU AI stock analysis FAQ
What is Sohu's balance sheet position?
As of June 30, 2026, Sohu had $833.0M in cash and short-term investments, $1.28B in shareholders' equity, and a current ratio of 3.02.
Does Sohu pay a dividend?
Sohu does not currently pay a dividend.
What do analysts forecast for Sohu's earnings and revenue?
For the fiscal year ending December 31, 2026, analysts estimate revenue of $547.9M and an EPS of -$1.32. For FY2027, consensus projections anticipate revenue of $561.4M and an EPS of -$1.94.
What is the price target for SOHU stock?
Analysts have a mean price target of $19.50, which sits 52.9% above its October 16, 2026 closing price of $12.75.