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Jun 30, 2025
Baidu Q2 2025 Earnings Report
Baidu reported a solid Q2 2025 driven by AI Cloud growth, despite continued declines in online marketing revenue.
Key Takeaways
Baidu posted $4.57B in revenue and $1.02B in net income for Q2 2025. AI Cloud revenue surpassed $1.4B, offsetting pressure from a decline in online marketing. EPS came in at $2.84, with adjusted EPS at $1.90.
AI Cloud revenue grew 34% YoY, surpassing $1.4B for the first time
Online marketing revenue declined 15% YoY to $2.27B
Net income was $1.02B, with GAAP EPS of $2.84
Baidu returned $677M to shareholders in H1 2025 under its repurchase program
Revenue by Segment
Forward Guidance
Baidu remains focused on its AI transformation across search, cloud, and autonomous driving, while navigating short-term marketing revenue headwinds.
Positive Outlook
- AI Cloud maintains healthy growth momentum
- Non-marketing revenue surpasses RMB 10B milestone
- Apollo Go expands with Uber and Lyft partnerships
- ERNIE 4.5 model open-sourced and integrated into Qianfan
- Over 50% of mobile search results now AI-generated
Challenges Ahead
- Online marketing revenue declined 15% YoY
- Operating income dropped 45% YoY
- R&D spending fell 13% YoY, mainly due to personnel cuts
- Free cash flow was negative $653M due to AI investments
- Cost of revenue rose 12% YoY, increasing margin pressure
Historical Earnings Impact
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Avg. Return Before/After Earnings
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