Nan Fang Du Shi Bao·2025-08-20 16:25Core Insights - Baidu reported a total revenue of 32.7 billion RMB for Q2 2025, a year-on-year decrease of 4% but a quarter-on-quarter increase of 1% [2][3] - The net profit attributable to Baidu was 7.3 billion RMB, showing a year-on-year increase of 33% but a quarter-on-quarter decrease of 5% [2][3] - Baidu's core revenue was 26.3 billion RMB, down 2% year-on-year but up 3% quarter-on-quarter, with core net profit rising 35% year-on-year to 7.4 billion RMB [2][3] Revenue Breakdown - Online marketing revenue decreased by 15% to 16.2 billion RMB, while non-online marketing revenue increased by 34% to 10 billion RMB, driven by the growth in intelligent cloud services [4] - Intelligent cloud revenue reached 6.5 billion RMB, reflecting a year-on-year growth of 27% [4] - iQIYI's revenue was 6.6 billion RMB, down 11% year-on-year [4] AI and Cloud Services - Baidu's intelligent cloud business showed significant growth, with the IDC report indicating Baidu's leading position in the AI public cloud service market for six consecutive years [4] - The launch of the Wenxin large model 4.5 series and the introduction of 10 new models have enhanced Baidu's cloud offerings [4] - The enterprise cloud segment continues to be a major growth driver, with subscription-based revenue accounting for over half of total revenue [4] AI Transformation and User Engagement - Baidu is accelerating its AI transformation in search, with AI-generated content in mobile search results increasing from 35% to 64% from April to July [4] - Monthly active users of the Baidu app reached 735 million, a year-on-year increase of 5% [4] Future Outlook and Strategy - Baidu is cautiously approaching the commercialization of AI search, with early tests showing promising signs, although significant commercialization has not yet begun [5] - The company aims to transition from CPC (cost per click) to CPS (cost per sale), which could enhance commercialization potential [5] - Baidu's digital human technology has reached new heights, exemplified by a successful live stream featuring a digital version of influencer Luo Yonghao [6] Autonomous Driving Expansion - Baidu's autonomous driving service, "Luobo Kuaipao," is expanding globally, with strategic partnerships with Uber and Lyft [7] - The service recorded over 2.2 million rides in Q2, a year-on-year increase of 148% [7] - Baidu is positioned as a leader in the global right-hand drive Robotaxi market, with operations in 16 cities [7] Shareholder Returns - Since the beginning of Q1 2025, Baidu has returned $677 million to shareholders, with a total buyback under the 2023 plan reaching $2.3 billion [7]