Baidu (BIDU) investor relations material

Executive summary

• 2025 marked a transformative year with AI becoming the core driver, as AI-powered business revenue exceeded RMB 11 billion in Q4, accounting for 43% of general business revenue.

• AI Cloud infrastructure and applications fueled robust growth, with subscription-based AI accelerator revenue up 143% year-over-year in Q4.

• Apollo Go delivered 3.4 million fully driverless rides in Q4, surpassed 20 million cumulative rides, and expanded to 26 cities globally, including new international markets.

• Announced a $5 billion share repurchase program, the first dividend policy, and the proposed spin-off and separate listing of Kunlunxin AI chip business.

• ERNIE 5.0 omni-modal foundation model was released, and the company was recognized in the S&P Global Sustainability Yearbook 2026 for ESG performance.

Financial highlights

• Q4 2025 total revenue was RMB 32.7 billion, up 5% quarter-over-quarter, driven by core AI-powered business.

• Q4 non-GAAP operating profit rose 28% sequentially to CNY 2.8 billion; non-GAAP net income was RMB 3.9 billion with a 12% margin.

• FY 2025 revenue was RMB 129.1 billion, down 3% year-over-year due to legacy business decline, partially offset by AI business growth.

• FY 2025 non-GAAP net income was RMB 18.9 billion (15% margin); adjusted EBITDA was RMB 22.9 billion (18% margin).

• FY 2025 included a RMB 16.2 billion impairment of long-lived assets, significantly impacting operating results; excluding impairment, operating income was RMB 10.4 billion.

Outlook and guidance

• Management expects AI Cloud and infrastructure to maintain strong momentum in 2026, with AI accelerator infrastructure as a core growth driver.

• AI-powered business is projected to become the majority of general business revenue in the foreseeable future.

• The first dividend payment is expected by year-end 2026.

• Continued focus on scaling Apollo Go internationally and achieving unit economics breakeven in more cities.

• AI investment density to be maintained, with positive operating cash flow expected to continue.