Baidu Reports Q2 2025 Growth Led by AI Initiatives

Baidu reported Q2 2025 growth driven by AI initiatives, with non-online marketing revenue surpassing RMB 10 billion for the first time with a 34% YoY growth. The company is focused on long-term value creation through AI investments, including the global expansion of its Apollo Go robotaxi service. Despite challenges, Baidu's strategic priorities are expected to drive substantial long-term value.

Baidu Inc. (NASDAQ: BIDU) reported its second-quarter 2025 financial results, highlighting robust growth driven by AI initiatives. The company's non-online marketing revenue surpassed RMB 10 billion for the first time, marking a 34% year-over-year (YoY) growth. This achievement underscores Baidu's commitment to long-term value creation through strategic investments in AI.

The AI Cloud business continued to deliver strong revenue growth, supported by Baidu's full-stack AI capabilities and comprehensive end-to-end AI products and solutions. The company's CEO, Robin Li, emphasized the importance of these initiatives in mitigating near-term pressure on the online marketing business and establishing a solid foundation for future growth.

Baidu Core's non-online marketing revenue exceeded RMB 10 billion for the first time, driven by new AI initiatives. The AI transformation of Baidu Search accelerated rapidly, with over 50% of mobile search result pages containing AI-generated content by the end of June. This transformation is expected to enhance user experience and drive long-term growth.

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% YoY increase. The company's strategic partnerships with Uber Technologies, Inc. and Lyft, Inc. aim to deploy thousands of Apollo Go's fully autonomous vehicles across multiple international markets. As of August 2025, the cumulative rides provided to the public by Apollo Go surpassed 14 million.

Baidu's AI investments are focused on advancing AI transformation across the Mobile Ecosystem, sustaining healthy growth momentum in AI Cloud, and accelerating Apollo Go's global expansion. The company's management remains committed to these strategic priorities, which are expected to drive significant long-term value despite near-term challenges.

Total revenues for the second quarter of 2025 were RMB 32.7 billion (US$ 4.57 billion), decreasing 4% YoY. Revenue from Baidu Core was RMB 26.3 billion (US$ 3.66 billion), decreasing 2% YoY. Operating income was RMB 3.3 billion (US$ 457 million), and net income attributable to Baidu was RMB 7.3 billion (US$ 1.02 billion). Free cash flow was negative RMB 4.7 billion (US$ 653 million), primarily due to increased investment in the AI business.

Baidu's management will hold an earnings conference call on August 20, 2025, at 8:00 AM U.S. Eastern Time (8:00 PM Beijing Time) to discuss the results in more detail.

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