Baidu Q2 Earnings Disappoint, AI and Robotaxi Business Show Promise

Baidu's Q2 earnings report showed a 4% YoY revenue decline to 32.7 billion yuan ($4.55 billion), slightly below analyst estimates. Despite a 35% fall in non-GAAP net income, the company highlighted its AI Cloud business and robotaxi unit Apollo Go as growth engines. Baidu's ADSs fell 3% on the news, outpacing the S&P 500's 0.2% decline.

Beijing, July 2, 2025 — Baidu, Inc. (NASDAQ: BIDU) released its second-quarter 2025 earnings report, revealing a 4% year-over-year (YoY) decline in total revenues to RMB 32.7 billion ($4.57 billion). This performance, which fell slightly below analyst estimates, was driven by a 15% YoY decrease in online marketing revenue, primarily due to the ongoing AI transformation of Baidu Search [1].

Despite the revenue decline, Baidu highlighted its AI Cloud business and robotaxi unit Apollo Go as key growth engines. The AI Cloud business contributed to a 34% YoY increase in non-online marketing revenue, reaching RMB 10.0 billion ($1.40 billion). Apollo Go, Baidu's autonomous ride-hailing service, provided over 2.2 million fully driverless rides in the second quarter, representing a 148% YoY increase [1].

Baidu's non-GAAP net income fell 35% to RMB 4.8 billion ($669 million), but the company maintained a strong cash position, with total cash, cash equivalents, restricted cash, short-term investments, and long-term time deposits and held-to-maturity investments amounting to RMB 124.2 billion ($17.34 billion) as of June 30, 2025 [1].

The company's shares fell 3% on the news, outpacing the S&P 500's 0.2% decline. Baidu's management will hold an earnings conference call on August 20, 2025, U.S. Eastern Time, to discuss the results further [1].

References:
[1] https://ir.baidu.com/news-releases/news-release-details/baidu-announces-second-quarter-2025-results