Baidu, Inc. (BIDU) Announced Q2 2026 Earnings on August 18, 2026, Reporting "Total revenue of Baidu was RMB 31.3 billion"

In the second quarter of 2026, Baidu, Inc. reported total revenue of RMB 31.3 billion, which represents a decrease of 2 percent quarter-over-quarter and a decrease of 4 percent year-over-year.Revenue from the Baidu General business was RMB 25.2 billion, which was a decrease of 3 percent quarter-over-quarter and 4 percent year-over-year.Operating income for the quarter was RMB 3.0 billion with an operating margin of 10 percent, while non-GAAP operating income was RMB 3.8 billion with a non-GAAP operating margin of 12 percent.Net income attributable to Baidu was RMB 2.3 billion, with a net margin of 7 percent and diluted earnings per ADS of RMB 5.74 for the quarter.Non-GAAP net income attributable to Baidu was RMB 2.6 billion, with a non-GAAP net margin of 8 percent and non-GAAP diluted earnings per ADS of RMB 7.22 for the quarter.Operating cash flow was RMB 3.4 billion, and total cash and investments were RMB 283.1 billion as of June 30, 2026.Management highlighted key strategic updates, including the ongoing transition to an AI-first company, with Baidu Core AI-powered business generating revenue of RMB 12.5 billion, which continues to represent half of Baidu General Business revenue.Within this segment, AI Cloud Infra revenue grew approximately 50 percent year-over-year, driven by strong public cloud demand, while GPU cloud revenue grew 283 percent year-over-year. To broaden access to capital markets, the Board approved a motion to pursue the voluntary conversion of Baidu's Hong Kong listing to dual primary status, which is expected to become effective within the year.The company also optimized its organization by welcoming a new generation of top AI talent to work on foundation models and reorganized model teams into two groups with clearer mandates across models and applications.In operational and product developments, the Apollo Go autonomous ride-hailing service delivered around 1 million fully driverless operational rides during the quarter, bringing cumulative rides to over 23 million as of June 2026.While domestic ride volume was temporarily affected by operational adjustments due to regulatory considerations, operations in affected cities began to resume in August on a stronger footing.Apollo Go also marked significant global milestones, receiving Hong Kong's first permit for fully driverless testing, starting open road testing in London in partnership with Uber and Lyft, and launching fully driverless commercial operations in Dubai.Other AI products saw increased adoption, with Miaoda's monthly active users increasing by 67 percent in June compared with March, and ERNIE Assistant's daily active users growing 83 percent year-over-year in June.For forward guidance, management expects AI Cloud Infra revenue growth to remain strong in the second half with the potential for further acceleration, and believes there is still meaningful room for AI Cloud Infrastructure margins to expand over the long term as the business scales.Conversely, due to ongoing transformation efforts and intense competition, management expects the online marketing and advertising business to remain under pressure in the second half.Priorities for the second half of the year include further enhancing safety standards, advancing global expansion, scaling fleet and ride volumes, and bringing more cities to unit economic breakeven.