Baidu Beats Q2 Estimates as AI Cloud Growth Offsets Marketing Slump

Baidu Inc. reported second-quarter 2025 revenue of RMB32.7 billion, edging past analysts’ consensus of RMB32.14 billion. Adjusted operating profit reached RMB4.4 billion, also above expectations, while adjusted profit per American depositary share was broadly in line at RMB13.58. Adjusted EBITDA came in at RMB6.49 billion, exceeding forecasts but producing a margin of 20 percent, down from 27 percent a year earlier. The Chinese search and artificial-intelligence company said results were buoyed by ‘robust’ expansion in its AI cloud unit, helping offset softness in its traditional advertising businesses. Revenue from Baidu Core slipped 2 percent year-on-year to RMB26.3 billion, and online marketing income declined to RMB16.2 billion. Net income attributable to Baidu was RMB7.3 billion. Management highlighted new AI initiatives as the primary growth driver, although profitability continued to feel pressure from heavier investment in cloud and generative-AI services. Cash and cash equivalents fell to RMB124.2 billion from RMB142 billion a year earlier, underscoring the company’s stepped-up spending.