By Tracy Qu

Baidu is scheduled to report third-quarter results on Tuesday. Here is what you need to know:

NET PROFIT: The Chinese search-engine company is likely to post net profit of 1.73 billion yuan, equivalent to $243.68 million for the quarter, according to the consensus estimate of 12 analysts in a FactSet poll, down from 7.63 billion yuan a year earlier.

REVENUE: Baidu is expected to post revenue of 30.62 billion yuan, according to FactSet, slightly lower than 33.56 billion yuan a year ago.

The Hong Kong-listed shares of the Beijing-based company rose 60% in the third quarter, amid broad positive sentiment of Chinese tech stocks. Shares have fallen in recent weeks, narrowing the year-to-date gain to 37%.

WHAT TO WATCH:

--ADVERTISING BUSINESS: Baidu's advertising business, which serves as its main revenue stream, is still likely to be under pressure in the third quarter, according to Citi analysts in a research note. As the company continues its transition toward integrating AI-generated content into its search results, Citi anticipates this shift will continue to add negative pressure on advertising business. The online marketing revenue of Baidu Core is likely to decline by about 19% year-on-year, the analysts say. This is also likely to dampen Baidu's profit, they note. Baidu operates its business through two segments, Baidu Core and iQiyi.

--AI CLOUD: Baidu's AI cloud business is likely to continue its upward trend in 3Q, Citi analysts say in a note, adding that the unit's revenue is expected to have risen 20% year-on-year in 3Q. Still, facing a high base, the growth rate is likely to slow down in the next few quarters. Citi analysts lowered its 4Q AI cloud revenue forecast to 14% from 17% previously.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

November 17, 2025 03:19 ET (08:19 GMT)

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