Baidu Announces First Quarter 2026 Results
Rhea-AI Summary
Baidu (NASDAQ:BIDU) reported unaudited Q1 2026 results. Revenue was RMB32.1 billion, down 2% quarter over quarter. Baidu General Business revenue was RMB26.0 billion, flat sequentially, while Baidu Core AI-powered Business revenue reached RMB13.6 billion, up 49% year over year and 52% of Baidu General Business.
Operating income was RMB3.2 billion (10% margin); non-GAAP operating income was RMB3.8 billion (12% margin). Net income attributable to Baidu was RMB3.4 billion (11% margin). Adjusted EBITDA was RMB6.0 billion with a 19% margin. Total cash and investments were RMB279.3 billion, and operating cash flow was RMB2.7 billion. Baidu returned US$172 million via share repurchases. Apollo Go delivered 3.2 million fully driverless rides in Q1 2026, with rides up over 120% year over year. Baidu App monthly active users reached 655 million in March 2026.
AI-generated analysis. Not financial advice.
Positive
- Baidu Core AI-powered Business revenue RMB13.6B, up 49% year over year
- AI Cloud Infra revenue RMB8.8B, up 79% year over year
- GPU Cloud revenue increased 184% year over year
- AI-native marketing services revenue RMB2.3B, up 36% year over year
- Adjusted EBITDA RMB6.0B with 19% margin
- Non-GAAP operating income RMB3.8B, 12% operating margin
- Total cash and investments RMB279.3B as of March 31, 2026
- Operating cash flow positive at RMB2.7B in Q1 2026
- Returned US$172M to shareholders via share repurchases in Q1 2026
- Apollo Go fully driverless rides up over 120% year over year to 3.2M
Negative
- Total revenue RMB32.1B, decreasing 2% quarter over quarter
- iQIYI revenue RMB6.2B, down 8% quarter over quarter
- Online Marketing Services revenue RMB12.6B, down 22% year over year
- Legacy Business revenue RMB10.2B, down 29% year over year
- Cost of revenue RMB19.6B, increasing 7% quarter over quarter
- AI Applications revenue RMB2.5B, flat year over year and down 10% quarter over quarter
- AI-native marketing services revenue down 15% quarter over quarter
- Total other income RMB626M versus RMB1.2B in prior quarter
News Market Reaction – BIDU
On the day this news was published, BIDU gained 1.76%, reflecting a mild positive market reaction. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $796M to the company's valuation, bringing the market cap to $46.05B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BIDU is down 5.56% while peers are mixed: TME (-1.05%), RDDT (+3.01%), NBIS (+1.07%), PINS (+1.04%), Z (+1.15%). The move appears stock-specific rather than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4/FY 2025 earnings | Positive | -5.7% | Q4 growth in AI Core, new buyback and dividend despite FY impairment. |
| Nov 18 | Q3 2025 earnings | Neutral | +2.7% | AI businesses >50% YoY growth offset by revenue decline and large impairment. |
| Aug 20 | Q2 2025 earnings | Positive | -2.6% | Strong AI Cloud and higher net income amid modest revenue decline. |
| May 21 | Q1 2025 earnings | Positive | -4.3% | Revenue and net income growth with rapid AI Cloud and Apollo Go expansion. |
| Feb 18 | Q4/FY 2024 earnings | Neutral | -7.5% | Mixed revenue trends, strong AI Cloud and net income, one-time losses. |
Recent earnings releases often showed strong AI growth but the stock has more frequently traded lower on these reports.
Over the past five earnings cycles, Baidu emphasized growth in AI-powered businesses and AI Cloud while legacy and online marketing revenues softened. Several reports highlighted sizeable cash balances, share repurchases, and, at times, impairments affecting GAAP profitability. Price reactions were often negative even when AI metrics improved. Today’s Q1 2026 results continue the focus on Core AI-powered Business growth and AI Cloud strength against more pressured traditional online marketing revenue.
Historical Comparison
In the last five earnings events, BIDU moved an average of -3.48%. Today’s -5.56% reaction to Q1 2026 results is somewhat more negative but remains within the historically bearish skew to earnings days.
Across recent earnings, Baidu has consistently highlighted rapid expansion of AI-powered and cloud businesses while legacy and online marketing revenues faced pressure, showing an ongoing shift in its revenue mix.
Market Pulse Summary
This announcement highlights Baidu’s Q1 2026 shift toward AI, with Core AI-powered Business revenue reaching RMB13.6 billion, up 49% year over year, and AI Cloud Infra up 79%. At the same time, total revenue slipped quarter over quarter and online marketing declined. Historical earnings releases show similar tension between high-growth AI segments and softer legacy businesses. Investors may watch AI Cloud momentum, online marketing stabilization, margins, and cash levels such as the RMB279.3 billion cash and investments balance.
Key Terms
non-GAAP financial
adjusted EBITDA financial
ADS financial
ESG regulatory
robotaxi technical
MAUs technical
AI Cloud Infra technical
GPU Cloud technical
AI-generated analysis. Not financial advice.
"In Q1, our Core AI-powered Business exceeded half of Baidu General Business revenue for the first time, marking a clear signal that AI has become the core driver of Baidu. AI Cloud Infra delivered exceptional momentum, powered by surging enterprise demand and the differentiated full-stack AI capabilities we have built over the years. Our AI Applications continued to gain traction across enterprises and individuals alike, further validating the commercial potential of our AI innovations. Meanwhile, Apollo Go sustained triple-digit growth in fully driverless rides while advancing its international expansion," said Robin Li, Co-founder and CEO of Baidu. "We see AI driving even greater value for Baidu in the quarters ahead."
"A few highlights from Q1: Revenue from Baidu Core AI-powered Business[1] exceeded
Operational Highlights[1]
Corporate
- Baidu ranked second globally in the Automotive category on Fast Company's 2026 Most Innovative Companies list, which recognized Apollo Go alongside Waymo as one of the world's leading robotaxi services. Fast Company highlighted Apollo Go as "leading the charge toward large-scale deployment in the global robotaxi industry."
- Baidu launched ERNIE 5.1 in May 2026, featuring stronger text capabilities, a more compact model size and enhanced reasoning capabilities. Recently on LMArena, ERNIE 5.1 ranked first among Chinese models on the text leaderboard and topped the LMArena search leaderboard among Chinese models, ranking fourth globally.
- Baidu released its annual ESG Report on May 11, 2026, which details Baidu's latest ESG policies and sustainability initiatives (http://esg.baidu.com/Uploads/Baidu_2025_ESG_Report.pdf).
- Baidu returned
US to shareholders in Q1 2026 through the repurchases of its shares under the current share repurchase program.$172 million
Baidu Core AI-powered Business
AI Cloud Infra
- Revenue from AI Cloud Infra was
RMB 8.8 billion in the first quarter of 2026, up79% year over year. - Revenue from GPU Cloud[3] increased by
184% year over year in the first quarter of 2026.
AI Applications
- Revenue from AI Applications was
RMB 2.5 billion in the first quarter of 2026, approximately flat year over year. - Baidu launched DuMate, its general-purpose agent for everyday productivity, in March 2026, which autonomously executes complex, multi-step workflows across applications and files end-to-end.
- Baidu launched Miaoda 3.0, its vibe coding platform, at Baidu Create 2026, introducing enterprise and mobile versions and enabling the generation of standalone applications.
- Baidu launched Famou Agent 2.0, its self-evolving agent, at Baidu Create 2026. Famou Agent 2.0 has achieved state-of-the-art performance on MLE-Bench, a leading machine learning engineering benchmark, setting a new SOTA record.
- Baidu Wenku and Baidu Drive launched GenFlow 4.0 in April 2026, enhancing its agent capabilities for more efficient productivity workflows.
Robotaxi
- In the first quarter of 2026, Apollo Go, Baidu's autonomous ride-hailing service, delivered 3.2 million fully driverless operational rides with weekly rides peaking at over 350,000 in March. Total rides increased by over
120% year over year. As of April 2026, cumulative rides provided to the public by Apollo Go exceeded 22 million. - Apollo Go continued to advance its global expansion. In
Europe , Apollo Go is on track to commence open-road testing inSwitzerland , and is expected to begin testing inLondon with Uber and Lyft soon. In theMiddle East , Apollo Go's fully driverless operations are running across multiple zones inDubai , with the Apollo Go App launched in March. - As of May 2026, Apollo Go's global footprint reached 27 cities. To date, Apollo Go fleets have accumulated over 330 million autonomous kilometers, including over 220 million fully driverless autonomous kilometers, with an outstanding safety record.
AI-native Marketing Services
- Revenue from AI-native marketing services reached
RMB 2.3 billion in the first quarter of 2026, up36% year over year. - Baidu App's MAUs reached 655 million in March 2026.
The following table sets forth selected revenue highlights for our Baidu Core AI-powered Business for the periods indicated:
Baidu General Business | |||||||||
Q1 | Q4 | Q1 | |||||||
(In billions) | 2025 | 2025 | 2026 | YoY | QoQ | ||||
RMB | RMB | RMB | |||||||
Baidu Core AI-powered Business[1] | 9.1 | 11.3 | 13.6 | 49 % | 21 % | ||||
- AI Cloud Infra | 4.9 | 5.8 | 8.8 | 79 % | 52 % | ||||
- AI Applications | 2.5 | 2.7 | 2.5 | 0 % | (10 %) | ||||
- AI-native Marketing Services | 1.7 | 2.7 | 2.3 | 36 % | (15 %) | ||||
% of Baidu General Business | 36 % | 43 % | 52 % | ||||||
Legacy Business[1] | 14.3 | 12.3 | 10.2 | (29 %) | (18 %) | ||||
Others[1] | 2.1 | 2.5 | 2.2 | 6 % | (11 %) | ||||
Baidu General Business | 25.5 | 26.1 | 26.0 | 2 % | 0 % | ||||
[1] The revenue and operational data presented are derived from the Company's internal management accounts and records, which have not been audited. |
[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details). |
[3] Revenue from GPU Cloud was previously referred to as subscription-based revenue from AI accelerator infrastructure. This change in naming does not imply any change in the underlying revenue definition or scope. |
First Quarter 2026 Financial Results for Baidu[2],[4]
Financial highlights
The following table sets forth revenue highlights for Baidu General Business:
Q1 | Q4 | Q1 | |||||||
(In billions, unaudited) | 2025 | 2025 | 2026 | YoY | QoQ | ||||
RMB | RMB | RMB | |||||||
Online Marketing Services | 16.0 | 15.1 | 12.6 | (22 %) | (17 %) | ||||
Online Marketing Services % of Baidu General Business | 63 % | 58 % | 48 % | ||||||
Others | 9.5 | 11.0 | 13.4 | 42 % | 23 % | ||||
Others % of Baidu General Business | 37 % | 42 % | 52 % | ||||||
Baidu General Business | 25.5 | 26.1 | 26.0 | 2 % | 0 % |
Revenue was RMB32.1 billion (
Cost of revenue was
Selling, general and administrative expenses were
Research and development expenses were
Operating income was
Total other income, net was
Income tax expense was
Net income attributable to Baidu was
Adjusted EBITDA was
We define total cash and investments as cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-to-maturity investments, and adjusted long-term investments. As of March 31, 2026, total cash and investments were
For detailed financial information of Baidu General Business and iQIYI, please see the appended financial tables.
[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details). |
[4] Unless otherwise noted, RMB to USD was converted at an exchange rate of |
Conference Call Information
Baidu's management will hold an earnings conference call at 8:00 AM on May 18, 2026,
Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q1 2026 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.
For pre-registration, please click:
https://s1.c-conf.com/diamondpass/10054331-iu876y.html
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.
Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.
About Baidu
Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Non-GAAP Financial Measures
To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin, adjusted long-term investments and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.
Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, and one-time employee severance costs.
Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, one-time employee severance costs, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.
Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents non-GAAP operating income excluding depreciation of fixed assets, and amortization of intangible assets excluding those resulting from business combinations. Adjusted long-term investments represent long-term investments, net, with publicly listed equity method investments adjusted to fair value based on quoted market prices.
For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure."
Baidu, Inc. | |||||||||
Condensed Consolidated Statements of Income | |||||||||
(In millions except for per share (or ADS) information, unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | March 31, | March 31, | ||||||
2025 | 2025 | 2026 | 2026 | ||||||
RMB | RMB | RMB | US$(2) | ||||||
Revenue | 32,452 | 32,740 | 32,075 | 4,650 | |||||
Costs and expenses: | |||||||||
Cost of revenue(1) | 17,487 | 18,277 | 19,589 | 2,840 | |||||
Selling, general and administrative(1) | 5,913 | 7,389 | 4,912 | 712 | |||||
Research and development(1) | 4,544 | 5,591 | 4,381 | 635 | |||||
Total costs and expenses | 27,944 | 31,257 | 28,882 | 4,187 | |||||
Operating income | 4,508 | 1,483 | 3,193 | 463 | |||||
Other income: | |||||||||
Interest income | 2,664 | 2,051 | 1,963 | 285 | |||||
Interest expense | (801) | (651) | (636) | (92) | |||||
Foreign exchange loss, net | (210) | (1,054) | (989) | (143) | |||||
Share of earnings from equity method investments | 574 | 1,193 | 536 | 78 | |||||
Others, net | 2,260 | (296) | (248) | (37) | |||||
Total other income, net | 4,487 | 1,243 | 626 | 91 | |||||
Income before income taxes | 8,995 | 2,726 | 3,819 | 554 | |||||
Income tax expense | 1,177 | 1,029 | 528 | 76 | |||||
Net income | 7,818 | 1,697 | 3,291 | 478 | |||||
Net income (loss) attributable to noncontrolling interests | 101 | (85) | (154) | (21) | |||||
Net income attributable to Baidu | 7,717 | 1,782 | 3,445 | 499 | |||||
Earnings per ADS (1 ADS representing 8 Class A ordinary shares): | |||||||||
-Basic | 21.86 | 4.48 | 9.38 | 1.36 | |||||
-Diluted | 21.59 | 3.71 | 8.76 | 1.27 | |||||
Earnings per share for Class A and Class B ordinary shares: | |||||||||
-Basic | 2.73 | 0.56 | 1.17 | 0.17 | |||||
-Diluted | 2.70 | 0.46 | 1.10 | 0.16 | |||||
Weighted average number of Class A and Class B ordinary shares outstanding (in millions): | |||||||||
-Basic | 2,751 | 2,721 | 2,721 | 2,721 | |||||
-Diluted | 2,762 | 2,758 | 2,764 | 2,764 | |||||
(1) Includes share-based compensation expenses as follows: | |||||||||
Cost of revenue | 77 | 79 | 82 | 12 | |||||
Selling, general and administrative | 313 | 252 | 190 | 28 | |||||
Research and development | 361 | 398 | 291 | 42 | |||||
Total share-based compensation expenses | 751 | 729 | 563 | 82 | |||||
(2) All translations from RMB to | |||||||||
Baidu, Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In millions, unaudited) | ||||||
December 31, | March 31, | March 31, | ||||
2025 | 2026 | 2026 | ||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 24,606 | 29,948 | 4,342 | |||
Restricted cash | 225 | 584 | 85 | |||
Short-term investments, net | 90,661 | 86,942 | 12,604 | |||
Accounts receivable, net | 12,972 | 14,167 | 2,054 | |||
Amounts due from related parties | 761 | 781 | 113 | |||
Other current assets, net | 22,745 | 22,867 | 3,315 | |||
Total current assets | 151,970 | 155,289 | 22,513 | |||
Non-current assets: | ||||||
Fixed assets, net | 26,281 | 26,848 | 3,892 | |||
Licensed copyrights, net | 5,963 | 6,139 | 890 | |||
Produced content, net | 14,575 | 14,578 | 2,113 | |||
Intangible assets, net | 3,891 | 4,368 | 633 | |||
Goodwill | 36,783 | 36,783 | 5,332 | |||
Long-term investments, net | 44,918 | 42,944 | 6,226 | |||
Long-term time deposits and held-to-maturity investments | 123,862 | 116,390 | 16,873 | |||
Amounts due from related parties | 167 | 119 | 17 | |||
Deferred tax assets, net | 4,582 | 5,266 | 763 | |||
Operating lease right-of-use assets | 8,610 | 8,550 | 1,239 | |||
Other non-current assets | 27,555 | 32,292 | 4,682 | |||
Total non-current assets | 297,187 | 294,277 | 42,660 | |||
Total assets | 449,157 | 449,566 | 65,173 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||
Current liabilities: | ||||||
Short-term loans | 7,626 | 3,979 | 577 | |||
Accounts payable and accrued liabilities | 38,891 | 39,479 | 5,724 | |||
Customer deposits and deferred revenue | 13,051 | 12,922 | 1,873 | |||
Deferred income | 531 | 566 | 82 | |||
Long-term loans, current portion | 14,765 | 14,979 | 2,171 | |||
Convertible senior notes, current portion | 1,459 | 1 | - | |||
Notes payable, current portion | 4,560 | 6,565 | 952 | |||
Amounts due to related parties | 1,988 | 1,960 | 284 | |||
Operating lease liabilities | 3,457 | 3,398 | 493 | |||
Total current liabilities | 86,328 | 83,849 | 12,156 | |||
Non-current liabilities: | ||||||
Deferred income | 198 | 192 | 28 | |||
Deferred revenue | 723 | 766 | 111 | |||
Amounts due to related parties | 36 | 30 | 4 | |||
Long-term loans | 3,369 | 7,612 | 1,104 | |||
Notes payable | 51,021 | 46,990 | 6,812 | |||
Convertible senior notes | 6,712 | 6,671 | 967 | |||
Deferred tax liabilities | 4,985 | 5,211 | 755 | |||
Operating lease liabilities | 4,108 | 3,941 | 571 | |||
Other non-current liabilities | 1,951 | 1,956 | 284 | |||
Total non-current liabilities | 73,103 | 73,369 | 10,636 | |||
Total liabilities | 159,431 | 157,218 | 22,792 | |||
Redeemable noncontrolling interests | 13,166 | 13,422 | 1,946 | |||
Equity | ||||||
Total Baidu shareholders' equity | 266,330 | 268,886 | 38,980 | |||
Noncontrolling interests | 10,230 | 10,040 | 1,455 | |||
Total equity | 276,560 | 278,926 | 40,435 | |||
Total liabilities, redeemable noncontrolling interests, and equity | 449,157 | 449,566 | 65,173 | |||
Baidu, Inc. | ||||||||||||||||||||
Selected Information | ||||||||||||||||||||
(In millions, unaudited) | ||||||||||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||||||
March 31, 2025 (RMB) | December 31, 2025 (RMB) | March 31, 2026 (RMB) | March 31, 2026 (US$) | |||||||||||||||||
Baidu | iQIYI | Elim & | Baidu, | Baidu | iQIYI | Elim & | Baidu, | Baidu | iQIYI | Elim & | Baidu, | Baidu | iQIYI | Elim & | Baidu, | |||||
Revenue | 25,463 | 7,186 | (197) | 32,452 | 26,112 | 6,794 | (166) | 32,740 | 26,001 | 6,226 | (152) | 32,075 | 3,769 | 903 | (22) | 4,650 | ||||
Costs and expenses: | ||||||||||||||||||||
Cost of revenue(1) | 12,246 | 5,406 | (165) | 17,487 | 13,042 | 5,376 | (141) | 18,277 | 14,498 | 5,233 | (142) | 19,589 | 2,102 | 759 | (21) | 2,840 | ||||
Selling, general and administrative(1) | 4,921 | 1,026 | (34) | 5,913 | 6,455 | 946 | (12) | 7,389 | 4,109 | 817 | (14) | 4,912 | 596 | 118 | (2) | 712 | ||||
Research and development(1) | 4,132 | 412 | - | 4,544 | 5,174 | 417 | - | 5,591 | 3,978 | 404 | (1) | 4,381 | 576 | 59 | - | 635 | ||||
Total costs and expenses | 21,299 | 6,844 | (199) | 27,944 | 24,671 | 6,739 | (153) | 31,257 | 22,585 | 6,454 | (157) | 28,882 | 3,274 | 936 | (23) | 4,187 | ||||
Operating income (loss) | 4,164 | 342 | 2 | 4,508 | 1,441 | 55 | (13) | 1,483 | 3,416 | (228) | 5 | 3,193 | 495 | (33) | 1 | 463 | ||||
Operating margin | 16 % | 5 % | 14 % | 6 % | 1 % | 5 % | 13 % | (4 %) | 10 % | |||||||||||
Add: total other income (loss), net | 4,602 | (115) | - | 4,487 | 1,270 | (27) | - | 1,243 | 654 | (28) | - | 626 | 95 | (4) | - | 91 | ||||
Less: income tax expense | 1,136 | 41 | - | 1,177 | 993 | 36 | - | 1,029 | 491 | 37 | - | 528 | 71 | 5 | - | 76 | ||||
Less: net income (loss) attributable to NCI | (3) | 4 | 100(3) | 101 | (79) | (2) | (4)(3) | (85) | 6 | 1 | (161)(3) | (154) | 1 | - | (22)(3) | (21) | ||||
Net income (loss) attributable to Baidu | 7,633 | 182 | (98) | 7,717 | 1,797 | (6) | (9) | 1,782 | 3,573 | (294) | 166 | 3,445 | 518 | (42) | 23 | 499 | ||||
Net margin | 30 % | 3 % | 24 % | 7 % | (0 %) | 5 % | 14 % | (5 %) | 11 % | |||||||||||
Non-GAAP financial measures: | ||||||||||||||||||||
Operating income (loss) (non-GAAP) | 4,872 | 459 | 5,333 | 2,837 | 143 | 2,967 | 3,950 | (148) | 3,807 | 573 | (22) | 552 | ||||||||
Operating margin (non-GAAP) | 19 % | 6 % | 16 % | 11 % | 2 % | 9 % | 15 % | (2 %) | 12 % | |||||||||||
Net income (loss) attributable to Baidu (non-GAAP) | 6,330 | 304 | 6,469 | 3,869 | 109 | 3,907 | 4,433 | (233) | 4,332 | 643 | (34) | 628 | ||||||||
Net margin (non-GAAP) | 25 % | 4 % | 20 % | 15 % | 2 % | 12 % | 17 % | (4 %) | 14 % | |||||||||||
Adjusted EBITDA | 6,712 | 495 | 7,209 | 4,544 | 196 | 4,727 | 6,050 | (101) | 5,954 | 877 | (15) | 863 | ||||||||
Adjusted EBITDA margin | 26 % | 7 % | 22 % | 17 % | 3 % | 14 % | 23 % | (2 %) | 19 % | |||||||||||
(1) Includes share-based compensation as follows: | ||||||||||||||||||||
Cost of revenue | 50 | 27 | 77 | 56 | 23 | 79 | 59 | 23 | 82 | 9 | 3 | 12 | ||||||||
Selling, general and administrative | 257 | 56 | 313 | 219 | 33 | 252 | 161 | 29 | 190 | 24 | 4 | 28 | ||||||||
Research and development | 329 | 32 | 361 | 368 | 30 | 398 | 265 | 26 | 291 | 38 | 4 | 42 | ||||||||
Total share-based compensation | 636 | 115 | 751 | 643 | 86 | 729 | 485 | 78 | 563 | 71 | 11 | 82 | ||||||||
(2) Relates to intersegment eliminations and adjustments | ||||||||||||||||||||
(3) Relates to the net income attributable to iQIYI noncontrolling interests | ||||||||||||||||||||
Baidu, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
(In millions,unaudited) | ||||||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
March 31, 2025 (RMB) | December 31, 2025 (RMB) | March 31, 2026 (RMB) | March 31, 2026 (US$) | |||||||||||||
Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | |||||
Net cash provided by (used in) operating activities | (6,340) | 339 | (6,001) | 2,562 | 47 | 2,609 | 2,484 | 186 | 2,670 | 360 | 27 | 387 | ||||
Net cash provided by (used in) investing activities | (1,175) | (30) | (1,205) | (17,439) | (947) | (18,386) | 5,217 | (275) | 4,942 | 756 | (40) | 716 | ||||
Net cash provided by (used in) financing activities | 19,639 | 860 | 20,499 | 595 | 518 | 1,113 | (702) | (933) | (1,635) | (102) | (135) | (237) | ||||
Effect of exchange rate changes on cash, cash | (5) | (1) | (6) | (295) | (10) | (305) | (241) | (35) | (276) | (34) | (5) | (39) | ||||
Net increase (decrease) in cash, cash | 12,119 | 1,168 | 13,287 | (14,577) | (392) | (14,969) | 6,758 | (1,057) | 5,701 | 980 | (153) | 827 | ||||
Cash, cash equivalents and restricted cash | ||||||||||||||||
At beginning of period | 32,999 | 3,590 | 36,589 | 35,030 | 4,770 | 39,800 | 20,453 | 4,378 | 24,831 | 2,965 | 635 | 3,600 | ||||
At end of period | 45,118 | 4,758 | 49,876 | 20,453 | 4,378 | 24,831 | 27,211 | 3,321 | 30,532 | 3,945 | 482 | 4,427 | ||||
Net cash provided by (used in) operating | (6,340) | 339 | (6,001) | 2,562 | 47 | 2,609 | 2,484 | 186 | 2,670 | 360 | 27 | 387 | ||||
Less: Capital expenditures | (2,869) | (31) | (2,900) | (1,952) | (20) | (1,972) | (5,839) | (77) | (5,916) | (846) | (11) | (857) | ||||
Free cash flow | (9,209) | 308 | (8,901) | 610 | 27 | 637 | (3,355) | 109 | (3,246) | (486) | 16 | (470) | ||||
Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows. | ||||||||||||||||
Baidu, Inc. | ||||||||||||||||
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures | ||||||||||||||||
(In millions except for per ADS information, unaudited) | ||||||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
March 31, 2025 (RMB) | December 31, 2025 (RMB) | March 31, 2026 (RMB) | March 31, 2026 (US$) | |||||||||||||
Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | |||||
Operating income (loss) | 4,164 | 342 | 4,508 | 1,441 | 55 | 1,483 | 3,416 | (228) | 3,193 | 495 | (33) | 463 | ||||
Add: Share-based compensation expenses | 636 | 115 | 751 | 643 | 86 | 729 | 485 | 78 | 563 | 71 | 11 | 82 | ||||
Add: Amortization and impairment of intangible assets resulting from business combinations | 72 | 2 | 74 | 45 | 2 | 47 | 49 | 2 | 51 | 7 | - | 7 | ||||
Add: One-time employee severance costs | - | - | - | 708 | - | 708 | - | - | - | - | - | - | ||||
Operating income (loss) (non-GAAP) | 4,872 | 459 | 5,333 | 2,837 | 143 | 2,967 | 3,950 | (148) | 3,807 | 573 | (22) | 552 | ||||
Add: Depreciation of fixed assets and amortization of intangible assets(1) | 1,840 | 36 | 1,876 | 1,707 | 53 | 1,760 | 2,100 | 47 | 2,147 | 304 | 7 | 311 | ||||
Adjusted EBITDA | 6,712 | 495 | 7,209 | 4,544 | 196 | 4,727 | 6,050 | (101) | 5,954 | 877 | (15) | 863 | ||||
Net income (loss) attributable to Baidu | 7,633 | 182 | 7,717 | 1,797 | (6) | 1,782 | 3,573 | (294) | 3,445 | 518 | (42) | 499 | ||||
Add: Share-based compensation expenses | 635 | 115 | 687 | 642 | 86 | 681 | 484 | 78 | 519 | 70 | 11 | 75 | ||||
Add: Amortization and impairment of intangible assets resulting from business combinations | 70 | 2 | 71 | 43 | 2 | 44 | 47 | 2 | 48 | 7 | - | 7 | ||||
Add: One-time employee severance costs | - | - | - | 708 | - | 708 | - | - | - | - | - | - | ||||
Add: Disposal loss (gain) | (91) | - | (91) | 31 | - | 31 | (2) | - | (2) | - | - | - | ||||
Add: Impairment of long-term investments | - | 2 | 1 | 59 | 10 | 64 | 79 | 9 | 83 | 11 | 1 | 12 | ||||
Add: Fair value loss (gain) of long-term investments and exchangeable bonds | (1,889) | (2) | (1,890) | 923 | 17 | 931 | 378 | (28) | 365 | 55 | (4) | 53 | ||||
Add: Reconciling items on equity method investments(2) | (66) | 5 | (64) | (431) | - | (431) | (44) | - | (44) | (6) | - | (6) | ||||
Add: Tax effects on non-GAAP adjustments(3) | 38 | - | 38 | 97 | - | 97 | (82) | - | (82) | (12) | - | (12) | ||||
Net income (loss) attributable to Baidu (non-GAAP) | 6,330 | 304 | 6,469 | 3,869 | 109 | 3,907 | 4,433 | (233) | 4,332 | 643 | (34) | 628 | ||||
Diluted earnings per ADS | 21.59 | 3.71 | 8.76 | 1.27 | ||||||||||||
Add: Accretion of the redeemable noncontrolling interests | 0.57 | 0.75 | 0.74 | 0.11 | ||||||||||||
Add: Non-GAAP adjustments to earnings per ADS | (3.62) | 6.16 | 2.56 | 0.37 | ||||||||||||
Diluted earnings per ADS (non-GAAP) | 18.54 | 10.62 | 12.06 | 1.75 | ||||||||||||
(1) This represents amortization of intangible assets excluding those resulting from business combinations. | ||||||||||||||||
(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or | ||||||||||||||||
(3) This represents tax impact of all non-GAAP adjustments. | ||||||||||||||||
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SOURCE Baidu, Inc.