Baidu Posts Profit Beat As AI Cloud Growth Accelerates, But Shares Fall

Baidu (NASDAQ: BIDU) reported fourth-quarter results that largely met revenue expectations while delivering stronger-than-anticipated earnings, though shares declined about 6% intra-day Thursday.

The company posted adjusted earnings per American Depositary Share (ADS) of RMB10.62, exceeding the RMB9.65 consensus estimate. Quarterly revenue totaled RMB32.7 billion ($4.68 billion), representing a 5% sequential increase and roughly matching the RMB32.64 billion consensus forecast. Growth was primarily driven by expansion in Baidu Core’s AI-focused operations.

Revenue from AI Cloud Infrastructure reached RMB5.8 billion in the fourth quarter of 2025, with subscription-based revenue tied to AI accelerator infrastructure surging 143% year over year.

AI Applications generated RMB2.7 billion in revenue during the quarter, with full-year 2025 revenue from the segment surpassing RMB10 billion.

Adjusted operating income for the quarter stood at RMB3.0 billion ($424 million), translating to an adjusted operating margin of 9%. Adjusted EBITDA totaled RMB4.7 billion ($676 million), reflecting a 14% adjusted EBITDA margin.