Baidu Announces Second Quarter 2025 Results

Rhea-AI Summary

Baidu (NASDAQ: BIDU) reported Q2 2025 financial results, with total revenues declining 4% year-over-year to RMB32.7 billion ($4.57 billion). The company's AI Cloud business showed strong growth, with non-online marketing revenue exceeding RMB10 billion for the first time, up 34% YoY.

Key highlights include Apollo Go's autonomous ride-hailing service providing over 2.2 million fully driverless rides (148% YoY increase) and strategic partnerships with Uber and Lyft for international expansion. The company's AI transformation accelerated with 64% of mobile search results now containing AI-generated content. Baidu App's MAUs reached 735 million, up 5% YoY.

Operating income decreased 45% YoY to RMB3.3 billion, while net income rose 33% YoY to RMB7.3 billion. The company has returned US$677 million to shareholders since Q1 2025.

Positive

• AI Cloud business achieved record non-online marketing revenue exceeding RMB10 billion, growing 34% YoY
• Apollo Go's driverless rides increased 148% YoY to 2.2 million in Q2
• Strategic partnerships secured with Uber and Lyft for global autonomous vehicle deployment
• Net income increased 33% YoY to RMB7.3 billion
• Baidu App MAUs grew 5% YoY to 735 million users
• Maintained strong cash position with RMB124.2 billion in cash and investments
• Returned US$677 million to shareholders through share repurchases in 2025

Negative

• Total revenues declined 4% YoY to RMB32.7 billion
• Operating income decreased 45% YoY to RMB3.3 billion
• Online marketing revenue fell 15% YoY to RMB16.2 billion
• Operating margin declined to 13% from previous higher levels
• Negative free cash flow of RMB4.7 billion due to increased AI investments
• Cost of revenues increased 12% YoY while revenue declined

Insights

Financial Analyst

Baidu shows declining revenue and margins but strong AI growth, creating a mixed financial picture as the company transitions.

Baidu's Q2 2025 results paint a picture of a company in transition, prioritizing long-term AI investments while navigating near-term headwinds. Total revenue decreased 4% year-over-year to RMB32.7 billion, with Baidu Core revenue down 2%. The most concerning metric is the 15% decline in online marketing revenue, which traditionally forms Baidu's revenue backbone.

However, this decline is partially offset by impressive 34% year-over-year growth in non-online marketing revenue, which exceeded RMB10 billion for the first time. This more balanced revenue mix suggests Baidu's diversification strategy is gaining traction, particularly in AI Cloud where they've maintained market leadership for six consecutive years.

Profitability metrics show significant pressure. Operating income fell dramatically by 45% year-over-year to RMB3.3 billion, with operating margin for Baidu Core dropping to 13% (non-GAAP: 17%). This margin compression stems from increased AI investments and costs related to AI Cloud expansion, evidenced by the 12% increase in cost of revenues despite falling top-line performance.

The substantial increase in total other income (531% year-over-year) masked some operational weaknesses, boosting net income to RMB7.3 billion (33% increase). This gain came primarily from fair value increases and earnings from long-term investments rather than core operations.

Concerning for short-term liquidity is the negative free cash flow of RMB4.7 billion, attributed to increased AI investments. However, Baidu maintains a strong balance sheet with RMB229.7 billion in cash and investments for Baidu Core, providing ample runway to weather current challenges while funding strategic initiatives.

The company's commitment to shareholder returns continues with US$677 million returned to shareholders since Q1 2025, bringing total repurchases to US$2.3 billion under the current program.

AI Technology Expert

Baidu's aggressive AI transformation shows promising growth in cloud and autonomous driving, despite near-term revenue pressure.

Baidu is executing a comprehensive AI transformation across multiple domains, with significant technical advancements that position the company competitively in the global AI landscape. The open-sourcing of the ERNIE 4.5 series represents a strategic move to expand Baidu's AI ecosystem. This latest foundation model family, comprising ten different architectures and sizes, demonstrates technical sophistication in key AI capabilities: instruction following, knowledge retention, and visual understanding.

The company's AI Cloud business shows particularly strong momentum, maintaining its #1 market position in China for six consecutive years according to IDC. The Qianfan MaaS platform expansion indicates Baidu is successfully building a comprehensive AI development infrastructure that integrates both proprietary and third-party models – a strategy that creates a defensible ecosystem while addressing diverse enterprise needs.

In the search domain, Baidu's AI transformation is rapidly accelerating, with AI-generated content now appearing in 50% of mobile search results by quarter-end, jumping to 64% by July. This indicates the company is successfully executing a fundamental shift from traditional link-based search to an AI-first approach with structured, intelligent, and multimodal answers.

Apollo Go's progress is particularly impressive, with over 2.2 million fully driverless rides in Q2 (148% YoY growth) and cumulative rides exceeding 14 million. The strategic partnerships with Uber and Lyft for international expansion represent a potential step-change in scale and monetization. The geographic expansion to 16 cities globally, including new testing in Hong Kong, Dubai, and Abu Dhabi, demonstrates technical readiness for diverse driving conditions and regulatory environments.

The launch of MuseSteamer, Baidu's proprietary video generation model, further reinforces their commitment to developing multimodal AI capabilities that can power future products and services. This holistic approach across foundation models, cloud infrastructure, search transformation, and autonomous driving reflects a coordinated AI strategy that leverages Baidu's technical strengths while targeting large addressable markets.

BEIJING, Aug. 20, 2025 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2025.

"In the second quarter, our AI Cloud business continued to deliver robust and healthy revenue growth, supported by our strengthening full-stack AI capabilities and comprehensive end-to-end AI products and solutions. This performance helped mitigate the near-term pressure on online marketing business, as we intensified the AI transformation of Baidu Search to elevate user experience and establish a stronger foundation for long-term growth. Apollo Go accelerated global expansion while actively exploring new business models, underscored by our leadership in both left-hand drive and right-hand drive robotaxi markets globally," said Robin Li, Co-founder and CEO of Baidu. "We remain focused on AI initiatives that offer the greatest long-term value creation potential, where our technology and innovation can make the most meaningful and lasting impact."

"In Q2, mainly propelled by new AI initiatives, Baidu Core's non-online marketing revenue exceeded RMB 10 billion for the first time, delivering 34% year-over-year growth and marking a more balanced, diversified mix," said Haijian He, CFO of Baidu. "We remain committed to our AI investments, focusing on advancing AI transformation across the Mobile Ecosystem, sustaining healthy growth momentum in AI Cloud, and accelerating Apollo Go's global expansion. While navigating near-term challenges, we believe these strategic priorities will drive significant long-term value."

Second Quarter 2025 Financial Highlights^[1]

	Baidu, Inc.
(In millions except per	Q2		Q1		Q2
ADS, unaudited)	2024		2025		2025			YOY		QOQ
	RMB		RMB		RMB	US$
Total revenues	33,931		32,452		32,713	4,567		(4 %)		1 %
Operating income	5,944		4,508		3,277	457		(45 %)		(27 %)
Operating income (non-GAAP)[2]	7,500		5,333		4,445	620		(41 %)		(17 %)
Net income to Baidu	5,488		7,717		7,322	1,022		33 %		(5 %)
Net income to Baidu (non-GAAP)[2]	7,396		6,469		4,795	669		(35 %)		(26 %)
Diluted earnings per ADS	15.01		21.59		20.35	2.84		36 %		(6 %)
Diluted earnings per ADS (non-GAAP)[2]	21.02		18.54		13.58	1.90		(35 %)		(27 %)
Adjusted EBITDA[2]	9,147		7,209		6,492	906		(29 %)		(10 %)
Adjusted EBITDA margin	27 %		22 %		20 %	20 %

 

	Baidu Core
	Q2		Q1		Q2
(In millions, unaudited)	2024		2025		2025			YOY		QOQ
	RMB		RMB		RMB	US$
Total revenues	26,687		25,463		26,251	3,664		(2 %)		3 %
Operating income	5,608		4,164		3,322	464		(41 %)		(20 %)
Operating income (non-GAAP)[2]	7,005		4,872		4,385	612		(37 %)		(10 %)
Net income to Baidu Core	5,462		7,633		7,382	1,030		35 %		(3 %)
Net income to Baidu Core (non-GAAP)[2]	7,290		6,330		4,792	669		(34 %)		(24 %)
Adjusted EBITDA[2]	8,617		6,712		6,397	893		(26 %)		(5 %)
Adjusted EBITDA margin	32 %		26 %		24 %	24 %

 

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.1636 as of June 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).

Operational Highlights
Corporate

• Baidu open-sourced the ERNIE 4.5 series, its latest and most advanced family of foundation models comprising ten models of different architectures and sizes, in June 2025. The ERNIE 4.5 series delivers strong performance particularly in instruction following, world knowledge memorization, and visual understanding.
• Baidu has returned US$677 million to shareholders since the beginning of Q1 2025, bringing the cumulative repurchase to US$2.3 billion under the 2023 share repurchase program.
• Baidu launched MuseSteamer, its proprietary video generation model in July 2025.

AI Cloud

• Baidu AI Cloud was ranked the No.1 AI cloud provider for the sixth consecutive year, according to IDC's 2024 report on China's AI public cloud market, issued in July 2025.
• Qianfan, Baidu's MaaS platform, expanded its model library with the open-sourced ERNIE 4.5 series and additional third-party models, while integrating more AI tools and functions to better support AI-native application development.

Intelligent Driving

• Apollo Go, Baidu's autonomous ride-hailing service, provided over 2.2 million fully driverless rides in the second quarter of 2025, representing a 148% year-over-year increase. As of August 2025, the cumulative rides provided to the public by Apollo Go surpassed 14 million.
• Apollo Go entered into a multi-year strategic partnership with Uber Technologies, Inc. in July 2025 to deploy thousands of Apollo Go's fully autonomous vehicles on the Uber platform across multiple international markets, with initial deployments planned for Asia and the Middle East.
• Apollo Go entered into a strategic partnership with Lyft, Inc. in August 2025 to deploy Apollo Go's fully autonomous vehicles across key European markets through the Lyft platform, starting with Germany and the United Kingdom and scaling to thousands of vehicles across Europe.
• Apollo Go expanded its open-road testing area in Hong Kong to Tung Chung residential areas in June 2025, and to the Southern District in August.
• Apollo Go commenced open-road testing in designated areas in both Dubai and Abu Dhabi in August 2025.
• Apollo Go's global footprint covered 16 cities as of June 2025.

Mobile Ecosystem

• The AI transformation of Baidu Search accelerated rapidly. By the end of June, over 50% of mobile search result pages contained AI-generated content, up from 35% in April. By July, 64% of mobile search result pages contained AI-generated content, with traditional link-based results progressively replaced by structured, intelligent, and multimodal-first AI answers.
• In June 2025, Baidu App's MAUs reached 735 million, up 5% year over year.
• Managed Page accounted for 50% of Baidu Core's online marketing revenue in the second quarter of 2025.

Second Quarter 2025 Financial Results

Total revenues were RMB32.7 billion ($4.57 billion), decreasing 4% year over year.

• Revenue from Baidu Core was RMB26.3 billion ($3.66 billion), decreasing 2% year over year; online marketing revenue was RMB16.2 billion ($2.27 billion), decreasing 15% year over year, and non-online marketing revenue was RMB10.0 billion ($1.40 billion), up 34% year over year, primarily driven by the boost of AI Cloud business.
• Revenue from iQIYI was RMB6.6 billion ($926 million), decreasing 11% year over year.

Cost of revenues was RMB18.4 billion ($2.56 billion), increasing 12% year over year, primarily due to an increase in costs related to AI Cloud business and content costs.

Selling, general and administrative expenses were RMB6.0 billion ($832 million), increasing 5% year over year, primarily due to an increase in channel spending expenses, partially offset by a decrease in personnel-related expenses.

Research and development expenses were RMB5.1 billion ($715 million), decreasing 13% year over year, primarily due to a decrease in personnel-related expenses.

Operating income was RMB3.3 billion ($457 million). Baidu Core operating income was RMB3.3 billion ($464 million), and Baidu Core operating margin was 13%. Non-GAAP operating income was RMB4.4 billion ($620 million). Non-GAAP Baidu Core operating income was RMB4.4 billion ($612 million), and non-GAAP Baidu Core operating margin was 17%.

Total other income, net was RMB4.9 billion ($678 million), increasing 531% year over year, primarily due to an increase in fair value gain and pickup of earnings from long-term investments, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.

Income tax expense was RMB881 million ($123 million), compared to RMB1.1 billion in the same period last year.

Net income attributable to Baidu was RMB7.3 billion ($1.02 billion), and diluted earnings per ADS was RMB20.35 ($2.84). Net income attributable to Baidu Core was RMB7.4 billion ($1.03 billion), and net margin for Baidu Core was 28%. Non-GAAP net income attributable to Baidu was RMB4.8 billion ($669 million). Non-GAAP diluted earnings per ADS was RMB13.58 ($1.90). Non-GAAP net income attributable to Baidu Core was RMB4.8 billion ($669 million), and non-GAAP net margin for Baidu Core was 18%.

Adjusted EBITDA was RMB6.5 billion ($906 million) and adjusted EBITDA margin was 20%. Adjusted EBITDA for Baidu Core was RMB6.4 billion ($893 million) and adjusted EBITDA margin for Baidu Core was 24%.

As of June 30, 2025, cash, cash equivalents, restricted cash and short-term investments were RMB124.2 billion ($17.34 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB119.9 billion ($16.74 billion). As of June 30, 2025, cash, cash equivalents, short-term investments and long-term time deposits and held-to-maturity investments for Baidu Core were RMB229.7 billion ($32.07 billion). Free cash flow was negative RMB4.7 billion (negative $653 million), and free cash flow excluding iQIYI was negative RMB4.6 billion (negative $648 million), primarily due to an increase of investment in AI business. We define net cash position as total cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-to-maturity investments, and others, less total loans, convertible senior notes, and notes payable. As of June 30, 2025, net cash position for Baidu was RMB155.1 billion ($21.66 billion).

Conference Call Information
Baidu's management will hold an earnings conference call at 8.00 AM on Aug 20, 2025, U.S. Eastern Time (8.00 PM on Aug 20, 2025, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q2 2025 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:
https://s1.c-conf.com/diamondpass/10049043-p7skv7.html 

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.

About Baidu
Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures
To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses.

For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure."

Baidu, Inc.
Condensed Consolidated Statements of  Income
(In millions except for per share (or ADS) information, unaudited)
		Three Months Ended								Six Months Ended
		June 30,		March 31,		June 30,		June 30,		June 30,		June 30,		June 30,
		2024		2025		2025		2025		2024		2025		2025
		RMB		RMB		RMB		US$(2)		RMB		RMB		US$(2)
Revenues:
Online marketing services		20,625		17,306		17,485		2,441		39,115		34,791		4,857
Others		13,306		15,146		15,228		2,126		26,329		30,374		4,240
Total revenues		33,931		32,452		32,713		4,567		65,444		65,165		9,097
Costs and expenses:
Cost of revenues(1)		16,398		17,487		18,357		2,563		31,689		35,844		5,004
Selling, general and administrative(1)		5,700		5,913		5,960		832		11,075		11,873		1,657
Research and development(1)		5,889		4,544		5,119		715		11,252		9,663		1,349
Total costs and expenses		27,987		27,944		29,436		4,110		54,016		57,380		8,010
Operating income		5,944		4,508		3,277		457		11,428		7,785		1,087
Other income:
Interest income		1,993		2,664		1,957		273		4,084		4,621		645
Interest expense		(742)		(801)		(701)		(98)		(1,508)		(1,502)		(210)
Foreign exchange gain (loss), net		93		(210)		(621)		(87)		494		(831)		(116)
Share of (losses) earnings from equity method investments		(119)		574		694		97		(324)		1,268		177
Others, net		(454)		2,260		3,534		493		(729)		5,794		809
Total other income, net		771		4,487		4,863		678		2,017		9,350		1,305
Income before income taxes		6,715		8,995		8,140		1,135		13,445		17,135		2,392
Income tax expense		1,131		1,177		881		123		2,014		2,058		287
Net income		5,584		7,818		7,259		1,012		11,431		15,077		2,105
Net income (loss) attributable to noncontrolling interests		96		101		(63)		(10)		495		38		5
Net income attributable to Baidu		5,488		7,717		7,322		1,022		10,936		15,039		2,100
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		15.11		21.86		20.90		2.92		30.12		42.76		5.97
-Diluted		15.01		21.59		20.35		2.84		29.98		41.95		5.86
Earnings per share for Class A and Class B ordinary shares:
-Basic		1.89		2.73		2.61		0.36		3.77		5.35		0.75
-Diluted		1.88		2.70		2.54		0.35		3.74		5.24		0.73
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,796		2,751		2,720		2,720		2,800		2,735		2,735
-Diluted		2,804		2,762		2,730		2,730		2,810		2,746		2,746
(1) Includes share-based compensation expenses as follows:
Cost of revenues		146		77		120		17		254		197		28
Selling, general and administrative		385		313		276		38		802		589		82
Research and development		981		361		685		96		1,599		1,046		146
Total share-based compensation expenses		1,512		751		1,081		151		2,655		1,832		256
(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

 

Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		24,832		29,940		4,179
Restricted cash		11,697		320		45
Short-term investments, net		102,608		93,926		13,112
Accounts receivable, net		10,104		11,568		1,615
Amounts due from related parties		790		758		106
Other current assets, net		18,818		20,706		2,890
Total current assets		168,849		157,218		21,947
Non-current assets:
Fixed assets, net		30,102		32,456		4,531
Licensed copyrights, net		6,930		6,670		931
Produced content, net		14,695		14,468		2,020
Intangible assets, net		772		3,266		456
Goodwill		22,586		37,637		5,254
Long-term investments, net		41,721		45,103		6,296
Long-term time deposits and held-to-maturity investments		98,535		110,123		15,373
Amounts due from related parties		137		119		17
Deferred tax assets, net		2,193		2,352		328
Operating lease right-of-use assets		10,898		10,682		1,491
Receivables related to the proposed acquisition of YY Live, net		13,547		-		-
Other non-current assets		16,815		30,475		4,253
Total non-current assets		258,931		293,351		40,950
Total assets		427,780		450,569		62,897
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		10,669		7,048		984
Accounts payable and accrued liabilities		41,443		38,208		5,334
Customer deposits and deferred revenue		14,624		13,142		1,835
Deferred income		684		490		68
Long-term loans, current portion		168		15,022		2,097
Convertible senior notes, current portion		242		1,484		207
Notes payable, current portion		8,026		4,653		650
Amounts due to related parties		1,794		1,636		228
Operating lease liabilities		3,303		3,442		480
Total current liabilities		80,953		85,125		11,883
Non-current liabilities:
Deferred income		231		194		27
Deferred revenue		585		663		93
Amounts due to related parties		56		46		6
Long-term loans		15,596		2,300		321
Notes payable		27,996		46,512		6,493
Convertible senior notes		8,351		6,739		941
Deferred tax liabilities		3,870		4,196		586
Operating lease liabilities		4,973		4,643		648
Other non-current liabilities		1,557		2,239		312
Total non-current liabilities		63,215		67,532		9,427
Total liabilities		144,168		152,657		21,310
Redeemable noncontrolling interests		9,870		12,652		1,766
Equity
Total Baidu shareholders' equity		263,620		275,057		38,396
Noncontrolling interests		10,122		10,203		1,425
Total equity		273,742		285,260		39,821
Total liabilities, redeemable noncontrolling interests, and equity		427,780		450,569		62,897

 

Baidu, Inc.
Selected Information
(In millions, unaudited)
		Three months ended						Three months ended						Three months ended						Three months ended
		June 30, 2024 (RMB)						March 31, 2025 (RMB)						June 30, 2025 (RMB)						June 30, 2025 (US$)
		Baidu Core	iQIYI	Elim & adj(2)		Baidu, Inc.		Baidu Core	iQIYI	Elim & adj(2)		Baidu, Inc.		Baidu Core	iQIYI	Elim & adj(2)		Baidu, Inc.		Baidu Core	iQIYI	Elim & adj(2)		Baidu, Inc.
Total revenues		26,687	7,439	(195)		33,931		25,463	7,186	(197)		32,452		26,251	6,628	(166)		32,713		3,664	926	(23)		4,567
YOY														(2 %)	(11 %)			(4 %)
QOQ														3 %	(8 %)			1 %
Costs and expenses:
Cost of revenues (1)		10,888	5,678	(168)		16,398		12,246	5,406	(165)		17,487		13,214	5,292	(149)		18,357		1,844	739	(20)		2,563
Selling, general and administrative (1)		4,751	970	(21)		5,700		4,921	1,026	(34)		5,913		5,018	960	(18)		5,960		700	134	(2)		832
Research and development (1)		5,440	449	-		5,889		4,132	412	-		4,544		4,697	422	-		5,119		656	59	-		715
Total costs and expenses		21,079	7,097	(189)		27,987		21,299	6,844	(199)		27,944		22,929	6,674	(167)		29,436		3,200	932	(22)		4,110
YOY
Cost of revenues														21 %	(7 %)			12 %
Selling, general and administrative														6 %	(1 %)			5 %
Research and development														(14 %)	(6 %)			(13 %)
Costs and expenses														9 %	(6 %)			5 %
Operating income (loss)		5,608	342	(6)		5,944		4,164	342	2		4,508		3,322	(46)	1		3,277		464	(6)	(1)		457
YOY														(41 %)	-			(45 %)
QOQ														(20 %)	-			(27 %)
Operating margin		21 %	5 %			18 %		16 %	5 %			14 %		13 %	(1 %)			10 %
Add: total other income (loss), net		1,011	(240)	-		771		4,602	(115)	-		4,487		4,925	(62)	-		4,863		687	(9)	-		678
Less: income tax expense		1,105	26	-		1,131		1,136	41	-		1,177		854	27	-		881		119	4	-		123
Less: net income (loss) attributable to NCI		52	7	37(3)		96		(3)	4	100(3)		101		11	(1)	(73)(3)		(63)		2	-	(12)(3)		(10)
Net income (loss) attributable to Baidu		5,462	69	(43)		5,488		7,633	182	(98)		7,717		7,382	(134)	74		7,322		1,030	(19)	11		1,022
YOY														35 %	-			33 %
QOQ														(3 %)	-			(5 %)
Net margin		20 %	1 %			16 %		30 %	3 %			24 %		28 %	(2 %)			22 %
Non-GAAP financial measures:
Operating income (non-GAAP)		7,005	501			7,500		4,872	459			5,333		4,385	59			4,445		612	9			620
YOY														(37 %)	(88 %)			(41 %)
QOQ														(10 %)	(87 %)			(17 %)
Operating margin (non-GAAP)		26 %	7 %			22 %		19 %	6 %			16 %		17 %	1 %			14 %
Net income attributable to Baidu (non-GAAP)		7,290	247			7,396		6,330	304			6,469		4,792	15			4,795		669	2			669
YOY														(34 %)	(94 %)			(35 %)
QOQ														(24 %)	(95 %)			(26 %)
Net margin (non-GAAP)		27 %	3 %			22 %		25 %	4 %			20 %		18 %	0 %			15 %
Adjusted EBITDA		8,617	536			9,147		6,712	495			7,209		6,397	94			6,492		893	14			906
YOY														(26 %)	(82 %)			(29 %)
QOQ														(5 %)	(81 %)			(10 %)
Adjusted EBITDA margin		32 %	7 %			27 %		26 %	7 %			22 %		24 %	1 %			20 %
(1) Includes share-based compensation as follows:
Cost of revenues		117	29			146		50	27			77		88	32			120		12	5			17
Selling, general and administrative		292	93			385		257	56			313		238	38			276		33	5			38
Research and development		945	36			981		329	32			361		652	33			685		91	5			96
Total share-based compensation		1,354	158			1,512		636	115			751		978	103			1,081		136	15			151
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net income attributable to iQIYI noncontrolling interests

 

Baidu, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions,unaudited)
		Three months ended				Three months ended				Three months ended				Three months ended
		June 30, 2024 (RMB)				March 31, 2025 (RMB)				June 30, 2025 (RMB)				June 30, 2025 (US$)
		Baidu excl. iQIYI	iQIYI	Baidu, Inc.		Baidu excl. iQIYI	iQIYI	Baidu, Inc.		Baidu excl. iQIYI	iQIYI	Baidu, Inc.		Baidu excl. iQIYI	iQIYI	Baidu, Inc.
Net cash provided by (used in) operating  activities		7,970	409	8,379		(6,340)	339	(6,001)		(864)	(13)	(877)		(120)	(2)	(122)
Net cash provided by (used in) investing activities		13,824	337	14,161		(1,175)	(30)	(1,205)		(8,428)	(113)	(8,541)		(1,176)	(16)	(1,192)
Net cash (used in) provided by financing activities		(9,946)	869	(9,077)		19,639	860	20,499		(8,688)	(465)	(9,153)		(1,213)	(65)	(1,278)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		66	22	88		(5)	(1)	(6)		(210)	(28)	(238)		(29)	(4)	(33)
Net increase (decrease) in cash, cash equivalents and restricted cash		11,914	1,637	13,551		12,119	1,168	13,287		(18,190)	(619)	(18,809)		(2,538)	(87)	(2,625)
Cash, cash equivalents and restricted cash
At beginning of period		36,964	6,270	43,234		32,999	3,590	36,589		45,118	4,758	49,876		6,298	664	6,962
At end of period		48,878	7,907	56,785		45,118	4,758	49,876		26,928	4,139	31,067		3,760	577	4,337
Net cash provided by (used in) operating  activities		7,970	409	8,379		(6,340)	339	(6,001)		(864)	(13)	(877)		(120)	(2)	(122)
Less: Capital expenditures		(2,090)	(28)	(2,118)		(2,869)	(31)	(2,900)		(3,779)	(21)	(3,800)		(528)	(3)	(531)
Free cash flow		5,880	381	6,261		(9,209)	308	(8,901)		(4,643)	(34)	(4,677)		(648)	(5)	(653)
Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows.

 

Baidu, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(In millions except for per ADS information, unaudited)
		Three months ended				Three months ended				Three months ended				Three months ended
		June 30, 2024 (RMB)				March 31, 2025 (RMB)				June 30, 2025 (RMB)				June 30, 2025 (US$)
		Baidu Core	iQIYI	Baidu, Inc.		Baidu Core	iQIYI	Baidu, Inc.		Baidu Core	iQIYI	Baidu, Inc.		Baidu Core	iQIYI	Baidu, Inc.
Operating income (loss)		5,608	342	5,944		4,164	342	4,508		3,322	(46)	3,277		464	(6)	457
Add: Share-based compensation expenses		1,354	158	1,512		636	115	751		978	103	1,081		136	15	151
Add: Amortization and impairment of intangible assets(1)		43	1	44		72	2	74		85	2	87		12	-	12
Operating income (non-GAAP)		7,005	501	7,500		4,872	459	5,333		4,385	59	4,445		612	9	620
Add:  Depreciation of fixed assets		1,612	35	1,647		1,840	36	1,876		2,012	35	2,047		281	5	286
Adjusted EBITDA		8,617	536	9,147		6,712	495	7,209		6,397	94	6,492		893	14	906
Net income (loss) attributable to Baidu		5,462	69	5,488		7,633	182	7,717		7,382	(134)	7,322		1,030	(19)	1,022
Add: Share-based compensation expenses		1,353	158	1,425		635	115	687		977	103	1,024		136	14	142
Add: Amortization and impairment of intangible assets(1)		41	1	41		70	2	71		83	2	84		12	-	12
Add: Disposal (gain)		(30)	-	(30)		(91)	-	(91)		(262)	-	(267)		(37)	-	(37)
Add: Impairment of long-term investments		26	17	34		-	2	1		101	26	113		14	4	16
Add: Fair value loss (gain) of long-term investments and exchangeable bonds		531	2	531		(1,889)	(2)	(1,890)		(3,317)	18	(3,309)		(462)	3	(462)
Add: Reconciling items on equity method investments(2)		83	-	83		(66)	5	(64)		(121)	-	(121)		(17)	-	(17)
Add: Tax effects on non-GAAP adjustments(3)		(176)	-	(176)		38	-	38		(51)	-	(51)		(7)	-	(7)
Net income attributable to Baidu (non-GAAP)		7,290	247	7,396		6,330	304	6,469		4,792	15	4,795		669	2	669
Diluted earnings per ADS				15.01				21.59				20.35				2.84
Add:  Accretion of the redeemable noncontrolling interests				0.57				0.57				0.64				0.09
Add:  Non-GAAP adjustments to earnings per ADS				5.44				(3.62)				(7.41)				(1.03)
Diluted earnings per ADS (non-GAAP)				21.02				18.54				13.58				1.90
(1) This represents amortization and impairment of intangible assets resulting from business combinations.
(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.
(3) This represents tax impact of all non-GAAP adjustments.

 

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SOURCE Baidu, Inc.

FAQ

What were Baidu's (BIDU) key financial results for Q2 2025?

Baidu reported total revenues of RMB32.7 billion ($4.57 billion), down 4% YoY, with net income of RMB7.3 billion, up 33% YoY. Operating income was RMB3.3 billion, declining 45% YoY.

How is Baidu's Apollo Go autonomous ride-hailing service performing?

Apollo Go provided over 2.2 million fully driverless rides in Q2 2025, up 148% YoY, and expanded to 16 cities. The service secured major partnerships with Uber and Lyft for international expansion.

What is the status of Baidu's AI transformation in 2025?

By July 2025, 64% of Baidu's mobile search result pages contained AI-generated content, up from 35% in April. The company also launched new AI models including ERNIE 4.5 series and MuseSteamer.

How much cash does Baidu (BIDU) have in Q2 2025?

Baidu held RMB124.2 billion ($17.34 billion) in cash, cash equivalents, restricted cash and short-term investments, with a net cash position of RMB155.1 billion ($21.66 billion).

What is Baidu's shareholder return policy in 2025?

Baidu returned US$677 million to shareholders since Q1 2025, bringing total repurchases to US$2.3 billion under the 2023 share repurchase program.

How is Baidu's AI Cloud business performing in 2025?

Baidu AI Cloud maintained its position as the No.1 AI cloud provider for the sixth consecutive year, with non-online marketing revenue exceeding RMB10 billion for the first time, growing 34% YoY.