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Baidu Posts Record Quarterly Revenue Decline as Ads Slump, Highlights AI Gains

Management disclosed roughly 10 billion yuan in AI-related revenue, signaling a pivot that is reshaping the business.

Overview

  • Baidu’s third-quarter revenue fell 7.1% to 31.17 billion yuan, the biggest quarterly decline in company records.
  • The company reported a net loss of 11.23 billion yuan due to asset impairments, compared with a profit a year earlier.
  • Online marketing revenue dropped 18% to 15.3 billion yuan, and streaming unit iQIYI declined about 8% year over year.
  • Non-marketing revenue rose 21% to 9.3 billion yuan, and executives said AI-related businesses generated about 10 billion yuan, roughly 50% higher than a year ago.
  • Adjusted EPS of 11.12 yuan beat expectations, while free cash flow turned negative with a roughly $302 million outflow tied to heavier AI investment.