Baidu reported second-quarter 2026 financial results highlighting a strategic shift toward its AI-powered business, whic

Baidu, Inc., trading on NASDAQ under BIDU and HKEX under 9888 and 89888, announced its unaudited financial results for the quarter ended June 30, 2026. Co-founder and CEO Robin Li stated, "With AI-powered Business now firmly established as the core of Baidu, we are strengthening the foundations for our next phase of AI-driven growth. AI Cloud Infra sustained strong momentum this quarter, with GPU Cloud growth accelerating further off an already high base. Our AI Applications portfolio also continued to flourish, with stronger capabilities and increasingly diverse use cases. Apollo Go made steady progress with its global expansion, while further strengthening its safety and operational capabilities and enhancing the rider experience," said Robin Li, Co-founder and CEO of Baidu. "While our online marketing business remains under pressure, the growing momentum in our core AI-powered Business reaffirms Baidu's transition from an internet-centric company to an AI-first company, and strengthens our confidence in our long-term growth potential."

CFO Haijian He added, "The quarter was marked by several highlights. First, revenue from Baidu Core AI-powered Business reached RMB 12.5 billion and continued to account for half of Baidu General Business revenue. Second, operating cash flow for Baidu remained positive for the fourth consecutive quarter, reaching RMB 3.4 billion in the second quarter. Third, we are moving forward with our conversion to a dual-primary listing in Hong Kong and expect it to become effective within this year." said Haijian He, CFO of Baidu. "Going forward, we remain firmly committed to investing in AI as the core driver of Baidu's long-term growth."

For Baidu General Business, total revenue was RMB 31.3 billion ($4.62 billion), decreasing 2 percent quarter over quarter and 4 percent year over year. Revenue from Baidu General Business specifically was RMB 25.2 billion ($3.71 billion), down 3 percent quarter over quarter and 4 percent year over year. iQIYI revenue stood at RMB 6.3 billion ($927 million), increasing 1 percent quarter over quarter but decreasing 5 percent year over year. Cost of revenue was RMB 19.1 billion ($2.82 billion), down 3 percent quarter over quarter due to lower AI Cloud costs, partially offset by higher traffic acquisition costs, and up 4 percent year over year primarily from increased AI Cloud expenses. Selling, general and administrative expenses were RMB 4.6 billion ($677 million), falling 6 percent quarter over quarter and 23 percent year over year, driven by lower expected credit losses and channel spending. Research and development expenses were RMB 4.6 billion ($679 million), rising 5 percent quarter over quarter and dropping 10 percent year over year, both mainly due to personnel-related expense fluctuations.

Operating income was RMB 3.0 billion ($446 million) with a 10 percent margin. Non-GAAP operating income was RMB 3.8 billion ($558 million) with a 12 percent margin. Total other income, net, was RMB 184 million ($27 million), compared to RMB 626 million last quarter and RMB 4.9 billion the prior year, with the year-over-year decline attributed to lower fair value gains on long-term investments and higher net foreign exchange losses. Income tax expense was RMB 1.0 billion ($147 million). Net income attributable to Baidu was RMB 2.3 billion ($342 million), yielding a 7 percent net margin and diluted earnings per ADS of RMB 5.74 ($0.85). Non-GAAP net income attributable to Baidu was RMB 2.6 billion ($379 million), with an 8 percent non-GAAP net margin and non-GAAP diluted earnings per ADS of RMB 7.22 ($1.06). Adjusted EBITDA reached RMB 6.2 billion ($906 million) with a 20 percent margin. As of June 30, 2026, total cash and investments stood at RMB 283.1 billion ($41.72 billion), while operating cash flow was RMB 3.4 billion ($506 million). All currency conversions use the exchange rate of RMB 6.7851 per USD as of June 30, 2026.

In connection with the Primary Conversion, the Board approved changes to committee compositions effective upon the conversion date. Independent director Yuanqing Yang will join the audit committee, which will be chaired by Xiaodan Liu alongside Jixun Foo. Xiaodan Liu will also join the corporate governance and nominating committee, chaired by Jixun Foo alongside Yuanqing Yang. Baidu management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 18, 2026, with pre-registration available via a provided link and a live webcast accessible at the investor relations website. Founded in 2000, Baidu continues to pursue its mission of simplifying the world through technology, maintaining its position as a leading AI company with a strong Internet foundation.