Baidu, Inc.

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% operating margin; non-GAAP operating income was RMB 3.8 billion with a 12% margin. Net income attributable to Baidu was RMB 2.3 billion, 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 as of June 30, 2026, and operating cash flow was RMB 3.4 billion. For the business outlook, management said AI Cloud Infra revenue 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 framed the quarter as evidence that Baidu is becoming an AI-first company, with AI-powered business at the center of the revenue mix. He emphasized long-term investment in the full AI stack, from chips and cloud infrastructure to models and applications, and said ERNIE will be pushed back into the top tier through continued investment and a more application-driven approach. His tone was confident and patient, especially on Kunlunxin, AI Cloud, digital humans, Miaoda, and Apollo Go’s global expansion.

Henry He said AI-powered business continued to account for half of Baidu General Business revenue and highlighted the company’s capital market initiative to convert its Hong Kong listing to dual primary status, with effectiveness expected within this year subject to approvals. On the numbers, he pointed to RMB 31.3 billion in total revenue, RMB 3.0 billion in operating income, RMB 2.3 billion in net income attributable to Baidu, and RMB 283.1 billion in total cash and investments. He also stressed that the company is still in an AI investment cycle but will invest with discipline, focusing on ROI, operating efficiency, cash flow, and capital efficiency as scale improves.

Analysts pressed on ERNIE’s competitiveness, AI Cloud growth and margins, capital spending versus profitability, Kunlunxin’s listing and commercial potential, the Hong Kong dual primary conversion, AI search monetization, and robotaxi regulation and expansion. Management said ERNIE development remains a priority, with resources, talent, and an application-driven strategy aimed at improving the model through direct feedback from products like search, digital humans, Miaoda, Famou, and DuMate. On AI Cloud, executives said strong demand, customer expansion, GPU mix improvement, MaaS momentum, and full-stack chip advantages support continued growth and margin expansion, while advertising should stay under pressure because AI search monetization is being deliberately delayed. On Apollo Go, they said regulations are becoming clearer, domestic and international expansion are not an either/or choice, and overseas markets such as Dubai, London, Hong Kong, and Switzerland are progressing.