Baidu, Inc.

Baidu total revenue was RMB 31.3 billion, down 2% quarter over quarter and 4% year over year. Baidu General Business revenue was RMB 25.2 billion, down 3% quarter over quarter and 4% year over year, while iQIYI revenue was RMB 6.3 billion, up 1% quarter over quarter and down 5% year over year. Operating income was RMB 3.0 billion with a 10% margin; non-GAAP operating income was RMB 3.8 billion with a 12% margin. Net income attributable to Baidu was RMB 2.3 billion and diluted EPS was RMB 5.74; non-GAAP net income was RMB 2.6 billion and non-GAAP diluted EPS was RMB 7.22. Total cash and investments were RMB 283.1 billion and operating cash flow was RMB 3.4 billion. For guidance, management said AI Cloud Infra should remain strong in the second half with potential for further acceleration, while advertising is expected to remain under pressure in the second half.

Robin Li said Baidu is becoming an AI-first company, with AI now at the core of its revenue mix and strategy. He emphasized long-term investment across the full AI stack, including chips, cloud, models, and applications, and said the company is focused on building the foundation for the next phase of growth. His tone was confident and patient, stressing that ERNIE and other AI assets will improve through sustained investment and application-driven iteration.

Henry He highlighted that Baidu Core AI-powered Business reached RMB 12.5 billion and made up half of Baidu General Business revenue. He noted AI Cloud Infra revenue grew about 50% year over year and GPU Cloud revenue rose 283% year over year, while operating income was RMB 3.0 billion and non-GAAP operating income was RMB 3.8 billion. He also pointed to total cash and investments of RMB 283.1 billion and operating cash flow of RMB 3.4 billion, while saying the company will keep investing in AI with discipline, focusing on ROI, operating efficiency, cash flow, and long-term margin expansion.

Analysts focused on ERNIE’s competitiveness, AI Cloud growth and margins, capital spending, Kunlunxin’s listing, the Hong Kong dual-primary conversion, AI search monetization, and robotaxi regulation. Management said foundation models remain dynamic, ERNIE will be improved through long-term investment and a more application-driven approach, and AI Cloud can keep growing strongly with margin expansion driven by GPU mix, MaaS, and full-stack chip advantages. On search, Julius Luo said product quality is improving but monetization is being held back for now, so advertising should remain under pressure in the second half. On Apollo Go, Robin Li said clearer regulations should support the industry, and Baidu will expand city by city based on local rules and economics rather than treating domestic and overseas markets as an either/or choice.