Baidu Inc. (NASDAQ: BIDU) saw its shares tumble 5.08% in pre-market trading on Tuesday following the release of its third-quarter financial results, which revealed a significant revenue decline and a substantial net loss due to an impairment charge.

The Chinese tech giant reported total revenues of RMB 31.17 billion ($4.38 billion) for Q3 2025, representing a 7% year-over-year decrease. The company's core online marketing revenue, which has long been its primary revenue driver, fell sharply by 18% compared to the same period last year, indicating persistent weakness in the advertising market.

Adding to investor concerns, Baidu swung to a net loss of RMB 11.23 billion ($1.58 billion) in the quarter, compared to a net profit of RMB 7.63 billion a year earlier. This dramatic shift was primarily attributed to a RMB 16.19 billion ($2.27 billion) impairment charge for long-lived assets related to its core business, reflecting challenges in the company's traditional segments.

Despite the overall downturn, there were some bright spots in Baidu's report. The company's AI-powered businesses showed strong growth, with revenue from this segment increasing by over 50% year-over-year to approximately RMB 10 billion. The AI Cloud business maintained solid growth momentum, and the Apollo Go autonomous ride-hailing service expanded its operations significantly.

However, these positive developments were not enough to offset investor concerns about the core business decline and the substantial impairment charge. As a result, Baidu's stock faced significant selling pressure in pre-market trading, reflecting market uncertainties about the company's near-term prospects and its ongoing transition towards AI-centric business models.