Baidu (BIDU) investor relations material

Executive summary

• AI-powered business accounted for 50% of general business revenue in Q2 2026, with AI Cloud Infra and GPU Cloud showing strong growth and contributing CNY 12.5 billion.

• Total revenue for Q2 2026 was CNY 31.3 billion (RMB 31.3 billion/$4.62 billion), down 2% sequentially and 4% year-over-year.

• The company is advancing a dual primary listing in Hong Kong to broaden its investor base and enhance share liquidity, expected to be completed within the year.

• Operating cash flow remained positive for the fourth consecutive quarter, reaching CNY 3.4 billion (RMB 3.4 billion/$506 million).

• Apollo Go expanded to 28 cities globally, accumulating over 23 million cumulative rides and 350 million autonomous kilometers.

Financial highlights

• Baidu General Business revenue was CNY 25.2 billion (RMB 25.2 billion/$3.71 billion), down 3% sequentially and 4% year-over-year.

• iQIYI revenue was CNY 6.3 billion (RMB 6.3 billion/$927 million), up 1% sequentially but down 5% year-over-year.

• Operating income was CNY 3.0 billion (RMB 3.0 billion/$446 million), with a 10% margin; non-GAAP operating income was CNY 3.8 billion (RMB 3.8 billion/$558 million), with a 12% margin.

• Net income attributable was CNY 2.3 billion (RMB 2.3 billion/$342 million), with a 7% margin; non-GAAP net income was CNY 2.6 billion (RMB 2.6 billion/$379 million), with an 8% margin.

• Total cash and investments stood at CNY 283.1 billion (RMB 283.1 billion/$41.72 billion) as of June 30, 2026.

Outlook and guidance

• AI Cloud Infra revenue growth is expected to remain strong in the second half, with potential for further acceleration and continued margin expansion driven by GPU cloud and self-developed chips.

• The company expects the dual-primary listing in Hong Kong to be completed within the year, pending approvals.

• Advertising business is expected to remain under pressure due to industry competition and deliberate monetization restraint.

• Apollo Go ride volume is expected to regain momentum as operations resume and expand globally.

• Management reaffirmed commitment to AI as the core driver of long-term growth.