By George Glover
Baidu stock was rising on Wednesday after the Chinese tech company's growing artificial-intelligence business helped it top analysts' first-quarter earnings targets.
The search-engine provider reported adjusted net income of 7.01 billion Chinese yuan ($970 million), as revenue rose 3% from a year ago to Yen31.51 billion ($4.36 billion).
Analysts were expecting net income of $682 million on revenue of $4.23 billion, according to a FactSet poll.
Online marketing revenue fell 6% from a year ago to $2.21 billion, but revenue for other parts of Baidu's core business jumped 40% to $1.3 billion, a surge the company attributed to its AI cloud division. Investors have been weighing up whether the AI boom will be enough to offset sliding advertising revenue as Chinese consumer spending slows.
Baidu's American depositary receipts, which were up 6% for the year as of Tuesday's close, rose 2.4% ahead of the U.S. open bell. Futures tracking the benchmark S&P 500 slipped 0.6%.
Write to George Glover at george.glover@dowjones.com
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(END) Dow Jones Newswires
May 21, 2025 05:32 ET (09:32 GMT)
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