Baidu (BIDU) Stock Rises 3% as AI Revenue Hits New Milestone After Earnings

TLDR

• Baidu’s net profit fell 55% year-over-year to 3.45 billion yuan ($506.6 million) in Q1 2026, beating analyst estimates of 3.15 billion yuan.
• Total revenue slipped 1.1% to 32.08 billion yuan, but topped analyst expectations of 30.95 billion yuan.
• Revenue from Baidu’s core AI-powered business — covering cloud, AI apps, and its robotaxi unit — jumped 49% to 13.6 billion yuan, crossing half of general business revenue for the first time.
• Online advertising revenue dropped to 12.6 billion yuan, down from 16 billion yuan a year earlier, as companies pulled back on marketing spend.
• BIDU ADRs rose roughly 3% in premarket trading to $139.37, up 3.6% year-to-date and 52% over the past 12 months.

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Baidu’s latest earnings report tells two stories at once. Profit collapsed. AI revenue boomed. And investors, for now, seem far more interested in the second story.

The Chinese internet company posted a net profit of 3.45 billion yuan ($506.6 million) for the first quarter ended March, a 55% drop from 7.72 billion yuan a year earlier. Higher costs and foreign exchange losses were the main culprits. Despite the steep decline, Baidu still beat the analyst consensus of 3.15 billion yuan, according to FactSet data.

Baidu, Inc., BIDU

On an adjusted basis, Baidu earned 12.06 yuan per American Depositary Share, ahead of the 11.57 yuan analysts had penciled in.

Total revenue came in at 32.08 billion yuan, down 1.1% from a year ago but ahead of the 30.95 billion yuan consensus estimate compiled by LSEG.

BIDU ADRs were up around 3% in premarket trading Monday at $139.37. The stock has gained 3.6% year-to-date through Friday’s close and is up 52% over the past 12 months.

That said, BIDU pulled back sharply from highs above $150 last week after the Trump-Xi summit wrapped without a major breakthrough on U.S.-China trade relations.

AI Cloud Business Crosses a Milestone

The headline number that drove the positive premarket reaction was the 49% jump in Baidu’s core AI-powered business — a segment that includes cloud infrastructure, AI applications, and its robotaxi unit Apollo Go. That unit brought in 13.6 billion yuan in Q1, crossing 50% of Baidu’s general business revenue for the first time.

The cloud surge mirrors what competitors are seeing. Alibaba, China’s largest cloud provider, also reported strong cloud growth last week, as enterprise demand for AI workloads lifts capacity requirements across the board.

Ad Revenue Keeps Sliding

The other half of the story is less encouraging. Online advertising revenue fell to 12.6 billion yuan in Q1, down from 16 billion yuan a year earlier.

That drop reflects a broader pullback in marketing spend by Chinese companies. A sluggish property market and weak consumer demand have kept businesses cautious about advertising budgets.

Baidu’s search business has historically been its main revenue engine, but that engine is running cooler. The AI cloud segment picking up the slack is the structural shift Baidu has been pointing to for several quarters — and Q1 is the first time the numbers actually show it crossing the halfway mark.

Excluding one-time items, Baidu earned 12.06 yuan per ADS in Q1, beating estimates of 11.57 yuan.

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