The Chinese search leader missed analyst projections for both top and bottom lines, with non-GAAP earnings per share coming in at RMB 7.22 against an expected 9.92 yuan. Baidu reported second quarter revenue of RMB 31.3 billion, falling short of the 31.96 billion yuan estimate and marking a 2% decline from the previous quarter. Net income was RMB 2.3 billion, below the RMB 3.42 billion forecast, although adjusted EBITDA beat expectations at RMB 6.2 billion.
AI now accounts for more than 50% of Baidu's general business for the second consecutive quarter, with that segment generating RMB 25.2 billion. GPU cloud revenue grew 283% year over year, and AI cloud infrastructure revenue rose 50% to RMB 7.3 billion. While founder Robin Li stated these results confirm the company's transition to an AI-first model, the sustained revenue decline reflects a persistent lag in development compared to rivals.
Key sources
- SOURCE@reuters“China's Baidu misses quarterly revenue estimates”x.com
- SUPPORT@wallstengine“Net Income: RMB2.3B (Est. CN¥3.42B)”x.com
- SUPPORT@sino_market“GPU cloud revenue rose 283% YoY and has recorded four straight quarters of triple‑digit growth”x.com
- SUPPORT@business“reflecting the search leader’s persistent lag in AI development”x.com
- SUPPORT@firstsquawk“2Q ADJ PROFIT PER ADS 7.22 YUAN, EST. 9.75 YUAN”x.com