Waterdrop Q1 2026 revenue rises 64.8% to 1.24 billion yuan
Waterdrop Inc reported a 64.8% year-over-year increase in total revenue to 1.24 billion yuan for Q1 2026, driven by a 74.1% rise in insurance-related income. The company maintained GAAP profitability for the 17th consecutive quarter, though net profit fell 9.1% to 98.4 million yuan amid increased marketing investments. Strategic initiatives include AI integration, with 75 LLM patent applications filed, and capital returns via $10.8 million in dividends and $120 million in share repurchases.
*this image is generated using AI for illustrative purposes only.
Waterdrop Inc reported a total revenue of 1.24 billion yuan for the first quarter of 2026, marking a 64.8% increase year-over-year. The company maintained GAAP profitability for 17 consecutive quarters, with a net profit attributable to ordinary shareholders of 98.4 million yuan. Despite the top-line growth, the company increased marketing investments to support long-term development, impacting profitability metrics.
Financial Performance
The company's insurance business drove the growth, with insurance-related income reaching 1.15 billion yuan, a 74.1% year-over-year increase. This segment generated an operating profit of 150 million yuan, representing a 13.3% operating margin. The non-insurance business accounted for approximately 7.8% of total revenue.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total Revenue | 1.24 billion yuan | Not provided | +64.8% |
| Insurance Income | 1.15 billion yuan | Not provided | +74.1% |
| Net Profit | 98.4 million yuan | Not provided | -9.1% |
| Operating Profit | 79.95 million yuan | Not provided | +5.3% |
Business Highlights
Waterdrop is advancing its AI capabilities, having filed 75 Large Language Model (LLM)-related patent applications as of March 31, 2026. The company's AI tools contributed approximately 87 million yuan in incremental premiums during the quarter. In the healthcare sector, the digital clinical trial solution platform enrolled over 15,500 patients to date, with single-quarter enrollment rising 16% year-over-year.
Capital Returns
The company returned capital to shareholders through dividends and buybacks. In early May, Waterdrop completed a cash dividend totaling approximately $10.8 million. Additionally, by the end of May 2026, the company had repurchased approximately 61.8 million American Depositary Shares (ADS) for about $120 million. Cumulative cash dividends and share repurchases since the IPO total approximately $170 million.
Outlook
Looking ahead to 2026, Waterdrop targets approximately 40% top-line growth. The company plans to increase marketing investments to support this expansion while expecting operating profit scale to remain broadly stable.
How will the increased marketing investments specifically impact operating margins if top-line growth exceeds the 40% target?
What is the projected timeline for the AI tools to scale beyond the current 87 million yuan in incremental premiums?
Will the company look to expand its digital clinical trial platform beyond patient enrollment into other healthcare services?
16
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
