Baidu (BIDU) investor relations material

Executive summary

• Q4 total revenue reached CNY 26.1 billion, with core AI-powered business contributing over CNY 11 billion, or 43% of general business revenue.

• 2025 was a transformative year with AI becoming the core, driving growth in AI Cloud Infra, AI applications, and Apollo Go, which expanded globally and surpassed 20 million cumulative rides.

• Announced a proposed spin-off and separate listing of Kunlunxin AI chip business, with progress underway.

• Launched a $5 billion share repurchase program and adopted the first dividend policy, with the first payment expected by year-end 2026.

• ERNIE 5.0 omni-modal foundation model released and recognized in 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.

• Full year 2025 revenues were RMB 129.1 billion, down 3% year-over-year due to legacy business decline, partially offset by AI-powered business growth.

• 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 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.

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

• Management expressed confidence in the AI-first strategy and long-term value creation in the AI era.

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