Baidu Inc. reported its third-quarter earnings, revealing a revenue of $4.78 billion, which represents a year-over-year increase of 1.29% and exceeds analyst expectations by $92 million. However, the company's earnings per share (EPS) fell to $2.37, a decline of 15.36% from the previous year, narrowly beating estimates by $0.02. The results indicate Baidu's biggest quarterly sales contraction in two years, primarily driven by a decline in online advertising revenue, its core revenue source. This disappointing performance has led to a significant drop in Baidu's stock, which fell 10% in intraday trading following the earnings release. The broader market also reacted negatively, with the Hang Seng Index closing down 1.89% and the CSI 300 Index declining by 3.1%. Analysts have expressed concerns over the subdued advertising environment, suggesting that advertisers remain cautious, impacting Baidu's revenue growth prospects.