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Baidu's Core AI revenues topped RMB 11B, with AI Cloud infra up 143% year over year.
Baidu authorized a $5B buyback, launched its first dividend and advanced Kunlunxin spin-off.
Baidu (BIDU - Free Report) reported fourth-quarter 2025 non-GAAP earnings of $1.52 per ADS (American Depositary Share), which surpassed the Zacks Consensus Estimate by 3.4%. The figure decreased 42% year over year. In domestic currency (Renminbi), the company reported earnings of RMB 10.62, down 42% year over year.
Revenues of $4.68 billion fell 4% year over year. The figure matched the Zacks Consensus Estimate. In domestic currency, revenues were RMB 32.74 billion, down 4% year over year.
Revenues from the Baidu General Business segment declined 6% year over year to RMB 26.11 billion ($3.73 billion).
Under this segment, Core AI-powered business revenue exceeded RMB 11 billion, accounting for 43% of Baidu General Business revenue, while Legacy Business revenues were RMB 12.3 billion. Revenues from the iQIYI segment rose 3% from the prior-year quarter to RMB 6.79 billion ($972 million).
The SG&A expenses of the company grew 11% year over year to RMB 7.39 billion ($1.06 billion) due to an increase in expected credit losses.
Research and development expenses grew 1% from a year ago to RMB 5.59 billion ($800 million), partially reflecting one-time employee severance costs to improve efficiency.
Non-GAAP operating income of RMB 2.97 billion ($424 million) was down 41% year over year. The non-GAAP operating margin of 9% contracted approximately 600 basis points year over year from 15%.
Adjusted EBITDA during the quarter was RMB 4.73 billion ($676 million), down 32% year over year, with adjusted EBITDA margin contracting approximately 600 basis points to 14%.
BIDU’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, total cash and investments stood at RMB 294.1 billion ($42.06 billion) compared with RMB 296.4 billion as of Sept. 30, 2025.
In the fourth quarter, net cash provided by operating activities totaled RMB 2.61 billion ($373 million), while free cash flow turned positive at RMB 637 million ($91 million), a meaningful improvement from an outflow of RMB 2.15 billion in the prior quarter.
Baidu’s Other Business Updates
In the fourth quarter of 2025, Baidu's Core AI-powered business continued to build commercial momentum across three categories. AI Cloud Infra generated RMB 5.8 billion, with subscription-based revenue from AI accelerator infrastructure growing 143% year over year, accelerating from 128% in the third quarter. AI Applications produced RMB 2.7 billion, supported by sticky subscription models across products such as Baidu Wenku and Baidu Drive. AI-native Marketing Services reached RMB 2.7 billion, up 110% year over year, driven by growing enterprise adoption of digital humans and AI agents.
Apollo Go, Baidu's autonomous ride-hailing service, delivered 3.4 million fully driverless operational rides in the fourth quarter of 2025, with total rides growing over 200% year over year and weekly rides peaking at over 300,000 during the quarter. As of February 2026, cumulative public rides surpassed 20 million. Apollo Go expanded its global footprint to 26 cities, entering new markets including the United Kingdom, Switzerland, the UAE and South Korea during the period.
Baidu released an updated version of its omni-modal foundation model ERNIE 5.0 in January 2026 and restructured its model development organization into two dedicated teams to sharpen its application-driven AI strategy. The company also established the Personal Super Intelligence Business Group, integrating Baidu Wenku and Baidu Drive to accelerate AI application innovation.
On the corporate front, Baidu's board authorized a new $5 billion share repurchase program effective through December 2028 and adopted the company's first-ever dividend policy. The proposed spin-off and separate listing of Kunlunxin, Baidu's proprietary AI chip subsidiary developed over more than a decade, is progressing and is expected to unlock additional shareholder value.
The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 4.9% over the past seven days to $11.10 per share, indicating an increase of 42.5% year over year. Analog Devices shares have climbed 58% in trailing 12 months.
The Zacks Consensus Estimate for Amphenol’s full-year 2026 earnings is pegged at $4.32 per share, revised upward by 2 cents over the past 30 days and suggests a year-over-year jump of 29.3%. Amphenol shares have soared 126.2% over the past year.
The Zacks Consensus Estimate for Monolithic Power Systems’ fiscal 2026 earnings has been revised upward to $21.63 per share from $21.07 over the past 30 days. Monolithic Power Systems shares have surged 93.9% over the past year.
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Baidu's Q4 Earnings Beat Estimates Despite Revenue and Profit Decline
Key Takeaways
Baidu (BIDU - Free Report) reported fourth-quarter 2025 non-GAAP earnings of $1.52 per ADS (American Depositary Share), which surpassed the Zacks Consensus Estimate by 3.4%. The figure decreased 42% year over year. In domestic currency (Renminbi), the company reported earnings of RMB 10.62, down 42% year over year.
Revenues of $4.68 billion fell 4% year over year. The figure matched the Zacks Consensus Estimate. In domestic currency, revenues were RMB 32.74 billion, down 4% year over year.
Revenues from the Baidu General Business segment declined 6% year over year to RMB 26.11 billion ($3.73 billion).
Under this segment, Core AI-powered business revenue exceeded RMB 11 billion, accounting for 43% of Baidu General Business revenue, while Legacy Business revenues were RMB 12.3 billion. Revenues from the iQIYI segment rose 3% from the prior-year quarter to RMB 6.79 billion ($972 million).
Baidu, Inc. Price, Consensus and EPS Surprise
Baidu, Inc. price-consensus-eps-surprise-chart | Baidu, Inc. Quote
BIDU’s Q4 Operating Highlights
The SG&A expenses of the company grew 11% year over year to RMB 7.39 billion ($1.06 billion) due to an increase in expected credit losses.
Research and development expenses grew 1% from a year ago to RMB 5.59 billion ($800 million), partially reflecting one-time employee severance costs to improve efficiency.
Non-GAAP operating income of RMB 2.97 billion ($424 million) was down 41% year over year. The non-GAAP operating margin of 9% contracted approximately 600 basis points year over year from 15%.
Adjusted EBITDA during the quarter was RMB 4.73 billion ($676 million), down 32% year over year, with adjusted EBITDA margin contracting approximately 600 basis points to 14%.
BIDU’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, total cash and investments stood at RMB 294.1 billion ($42.06 billion) compared with RMB 296.4 billion as of Sept. 30, 2025.
In the fourth quarter, net cash provided by operating activities totaled RMB 2.61 billion ($373 million), while free cash flow turned positive at RMB 637 million ($91 million), a meaningful improvement from an outflow of RMB 2.15 billion in the prior quarter.
Baidu’s Other Business Updates
In the fourth quarter of 2025, Baidu's Core AI-powered business continued to build commercial momentum across three categories. AI Cloud Infra generated RMB 5.8 billion, with subscription-based revenue from AI accelerator infrastructure growing 143% year over year, accelerating from 128% in the third quarter. AI Applications produced RMB 2.7 billion, supported by sticky subscription models across products such as Baidu Wenku and Baidu Drive. AI-native Marketing Services reached RMB 2.7 billion, up 110% year over year, driven by growing enterprise adoption of digital humans and AI agents.
Apollo Go, Baidu's autonomous ride-hailing service, delivered 3.4 million fully driverless operational rides in the fourth quarter of 2025, with total rides growing over 200% year over year and weekly rides peaking at over 300,000 during the quarter. As of February 2026, cumulative public rides surpassed 20 million. Apollo Go expanded its global footprint to 26 cities, entering new markets including the United Kingdom, Switzerland, the UAE and South Korea during the period.
Baidu released an updated version of its omni-modal foundation model ERNIE 5.0 in January 2026 and restructured its model development organization into two dedicated teams to sharpen its application-driven AI strategy. The company also established the Personal Super Intelligence Business Group, integrating Baidu Wenku and Baidu Drive to accelerate AI application innovation.
On the corporate front, Baidu's board authorized a new $5 billion share repurchase program effective through December 2028 and adopted the company's first-ever dividend policy. The proposed spin-off and separate listing of Kunlunxin, Baidu's proprietary AI chip subsidiary developed over more than a decade, is progressing and is expected to unlock additional shareholder value.
BIDU’s Zacks Rank & Stocks to Consider
Currently, BIDU carries a Zacks Rank #3 (Hold).
Analog Devices (ADI - Free Report) , Amphenol (APH - Free Report) and Monolithic Power Systems (MPWR - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector.
Analog Devices, Amphenol and Monolithic Power Systems carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved upward by 4.9% over the past seven days to $11.10 per share, indicating an increase of 42.5% year over year. Analog Devices shares have climbed 58% in trailing 12 months.
The Zacks Consensus Estimate for Amphenol’s full-year 2026 earnings is pegged at $4.32 per share, revised upward by 2 cents over the past 30 days and suggests a year-over-year jump of 29.3%. Amphenol shares have soared 126.2% over the past year.
The Zacks Consensus Estimate for Monolithic Power Systems’ fiscal 2026 earnings has been revised upward to $21.63 per share from $21.07 over the past 30 days. Monolithic Power Systems shares have surged 93.9% over the past year.