Baidu Inc. (BIDU) reported unaudited second-quarter 2026 revenue of RMB 31.33 billion (USD 4.62 billion), down 2 % quarter on quarter (QoQ) and 4 % year on year (YoY). Baidu General Business contributed RMB 25.18 billion, while video subsidiary iQIYI delivered RMB 6.29 billion, up 1 % QoQ but 5 % lower YoY.

Baidu Core AI-powered Business – spanning AI Cloud infrastructure, AI applications and AI-native marketing – generated RMB 12.50 billion, representing 50 % of General Business revenue, versus 38 % a year earlier. Within this portfolio: • AI Cloud Infrastructure revenue jumped 50 % YoY to RMB 7.30 billion, propelled by a 283 % surge in GPU Cloud sales. • AI Applications revenue was stable at RMB 2.50 billion, up 3 % YoY. • AI-native Marketing Services held flat YoY at RMB 2.60 billion. Legacy Business contracted 23 % YoY to RMB 10.40 billion.

Group profitability softened but remained positive. Operating income came in at RMB 3.02 billion, translating to a 10 % margin. Non-GAAP operating income stood at RMB 3.79 billion with a 12 % margin. Net income attributable to shareholders was RMB 2.32 billion, yielding a 7 % net margin and diluted earnings of RMB 5.74 (USD 0.85) per ADS. On a non-GAAP basis, net income reached RMB 2.57 billion, with diluted earnings of RMB 7.22 (USD 1.06) per ADS and an 8 % margin. Adjusted EBITDA was RMB 6.15 billion, representing a 20 % margin.

Cost management partly mitigated revenue pressure. Cost of revenue declined 3 % QoQ but rose 4 % YoY to RMB 19.10 billion, reflecting higher AI Cloud expenses and increased traffic acquisition costs. Selling, general and administrative expenses fell 6 % QoQ and 23 % YoY to RMB 4.60 billion, while research and development spending edged up 5 % QoQ but was 10 % lower YoY at RMB 4.61 billion.

Cash generation remained solid. Operating cash flow was positive for a fourth consecutive quarter at RMB 3.44 billion. Total cash and investments stood at RMB 283.10 billion as of 30 June 2026. Since the start of 2026 Baidu repurchased USD 259 million of its shares.

Operationally, autonomous ride-hailing arm Apollo Go expanded to 28 cities, surpassing 350 million cumulative autonomous kilometres, including 240 million fully driverless kilometres. The Baidu App reached 644 million monthly active users in June. The company also advanced plans to convert its Hong Kong secondary listing into a dual-primary listing, with shareholder approval slated for 26 August 2026 and expected completion within the year.

Management reaffirmed commitment to AI investment despite ongoing softness in traditional online marketing, underscoring Baidu’s strategic shift from an Internet-centric to an AI-first operating model.