Baidu slips as revenue misses estimates on weak online marketing, AI cloud offsets

Published 20/08/2025, 10:12
Updated 20/08/2025, 14:52
© Reuters

Investing.com -- Baidu (HK:9888) (NASDAQ:BIDU) reported mixed results for the second quarter of fiscal 2025, beating profit expectations while revenue missed analysts’ estimates.

The company’s shares fell more than 3% Wednesday. 

The Chinese tech giant posted earnings per share (EPS) of RMB13.58, topping consensus estimates of RMB13.33.

Revenue for the three-month period fell 4% year-over-year to RMB32.71 billion, slightly below the consensus of RMB32.92 billion.

Baidu Core contributed RMB26.3 billion ($3.66 billion), down 2% from a year earlier.

Online marketing revenue fell 15% to RMB16.2 billion ($2.27 billion), while non-online marketing revenue rose 34% to RMB10.0 billion ($1.40 billion), supported by growth in the AI Cloud business.

Revenue at iQIYI came in at RMB6.6 billion ($926 million), marking an 11% year-on-year decline.

"In the second quarter, our AI Cloud business continued to deliver robust and healthy revenue growth, supported by our strengthening full-stack AI capabilities and comprehensive end-to-end AI products and solutions," said Robin Li, co-founder and CEO of Baidu.

"We remain focused on AI initiatives that offer the greatest long-term value creation potential, where our technology and innovation can make the most meaningful and lasting impact," he added.

Baidu’s adjusted EBITDA in Q2 totaled RMB6.5 billion ($906 million), with a margin of 20%.

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