BIDU(US:BIDU) Nan Fang Du Shi Bao·2025-08-20 16:27Core 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% [1] - 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% [1] - AI-driven new business revenue, including intelligent cloud services, exceeded 10 billion RMB for the first time, growing by 34% year-on-year [1] Revenue Breakdown - Baidu's core revenue was 26.3 billion RMB, down 2% year-on-year but up 3% quarter-on-quarter [1] - Online marketing revenue decreased by 15% to 16.2 billion RMB, while non-online marketing revenue grew by 34% to 10 billion RMB, primarily driven by intelligent cloud services [2] - Intelligent cloud revenue reached 6.5 billion RMB, reflecting a year-on-year growth of 27% [2] AI Transformation and Innovations - Baidu is accelerating its AI transformation in search, with AI-generated content in mobile search results increasing from 35% in April to 64% in July [2] - The company launched the "Baidu Steam Engine," a multi-modal model that enhances user experience across various applications, including digital human technology [3][4] - Baidu's digital human technology was highlighted as a significant application of its Wenxin model, achieving impressive results in live streaming events [4] Global Expansion and Strategic Partnerships - Baidu's autonomous driving service, "Luobo Kuaipao," is expanding globally, having formed strategic partnerships with Uber and Lyft for deployment in Asia, the Middle East, and Europe [5] - The service recorded over 2.2 million rides in Q2, a 148% year-on-year increase, and has expanded its footprint to 16 cities worldwide [5] - Baidu aims to leverage its cost advantages in low-cost markets to penetrate higher-value markets globally [5] Financial Management and Future Outlook - Baidu's CFO indicated that while the company is committed to AI investments, it faces short-term pressure on revenue and profit margins due to the early stages of AI search commercialization [4] - The company has returned $677 million to shareholders since Q1 2025, with a total buyback plan reaching $2.3 billion [5]