BIDU(US:BIDU) Di Yi Cai Jing·2025-08-20 11:16Core Viewpoint - AI continues to impact Baidu's traditional search advertising business while also creating new revenue streams [1][2] Financial Performance - Baidu's total revenue for Q2 2025 reached 32.7 billion RMB, a year-on-year decline of 4% [3] - Net profit attributable to Baidu was 7.3 billion RMB, an increase of 33% year-on-year [3] - Non-GAAP net profit attributable to Baidu was 4.8 billion RMB, a decrease of 35% year-on-year [3] - Revenue from Baidu's core business was 26.3 billion RMB, down 2% year-on-year [2] - Network marketing revenue, Baidu's primary income source, was 16.2 billion RMB, down 15% year-on-year [2] - Non-network marketing revenue reached 10 billion RMB, up 34% year-on-year, driven by AI cloud business [2] AI and Market Dynamics - Over 50% of mobile search result pages included AI-generated content by the end of June, increasing from 35% in April [4] - By July, 64% of mobile search results contained AI-generated content, indicating a shift from traditional link-based results to structured and intelligent AI responses [4] - The traditional search advertising model is being challenged by new AI search competitors and changing user behavior [4] Cost and Investment - Baidu's sales costs increased by 12% year-on-year to 18.4 billion RMB, primarily due to rising costs associated with AI cloud and content [5] - R&D expenses decreased by 13% to 5.1 billion RMB, mainly due to reduced personnel-related costs [6] - Baidu open-sourced 10 models from the Wenxin 4.5 series, aiming for commercial value conversion [6] Business Developments - Baidu's autonomous vehicle service, "Luobo Kuaipao," provided over 2.2 million fully autonomous rides in Q2, a 148% year-on-year increase [6] - Cumulative rides offered to the public exceeded 14 million by August 2025 [6] Stock Performance - As of the report, Baidu's stock price increased by 0.58% in pre-market trading [7]