Baidu’s net income surged last quarter on the strength of its artificial intelligence offerings, while revenue beat estimates.
GAAP net income was CN¥7.71 billion (US$1.06 billion, A$1.66 billion) last quarter, rising 42% year-over-year. Revenue was up 3% to CN¥32.45 billion, besting analyst estimates of ¥31.03 billion.
“Baidu Core revenue grew 7% year over year in the first quarter, driven by the accelerating momentum of AI Cloud, which surged 42% year over year,” said Baidu CEO Robin Li. “We also achieved a pivotal milestone in our robotaxi business, as Apollo Go expanded internationally by entering Dubai and Abu Dhabi, reinforcing our commitment to bringing safe, comfortable, and affordable autonomous ride-hailing services to global markets.”
“We are confident that our AI-first strategy positions us to remain at the forefront and to capture long-term growth opportunities in the AI era.”
Its diluted earnings per share were CN¥21.59, up 45% year-over-year. Adjusted EBITDA fell by 13% to ¥7.21 billion, and operating income declined by 18% to ¥4.51 billion.
Online marketing services revenue was CN¥17.31 billion, dropping from ¥18.49 billion one year ago. Revenue for its Others segment, however, increased by ¥2.12 billion to ¥15.15 billion.
The company released its Ernie 4.5 and X1 AI models in March, followed by Turbo editions of each model intended to provide higher performance at a lower price point.
Robotaxi service Apollo Go began testing in the United Arab Emirates last quarter, and in April secured permits to test in Hong Kong. Apollo Go provided more than 1.4 million rides last quarter, up 75% year-over-year.
The Baidu app’s monthly active users grew by 7% year-over-year, reaching 724 million.
While Baidu did not issue full guidance, CFO Luo Rong projected in an earnings call that the next quarter would be more challenging. Baidu’s (HKG: 9888) share price has risen by around 6% in 2025, lagging rivals like Alibaba and Tencent.
The company’s shares closed at HK$84.55 following the release of the results, down from its previous close at $86.10. Its market capitalisation is $228.35 billion.
