Baidu (BIDU) Stock: AI Revenue Surges 48% as $5B Buyback and Dividend Plan Boost Confidence
TLDR
Baidu stock dips, but AI revenue jumps 48% and momentum builds fast.
Apollo Go logs 3.4M rides as robotaxi expansion goes truly global.
Cash pile stays strong at RMB 294B, keeping Baidu’s AI push funded.
New $5B buyback signals confidence despite near-term market pressure.
Dividend policy targets late-2026 payouts, adding a new investor hook.
Baidu shares moved lower despite strong AI momentum and new capital actions that strengthened overall market confidence. The stock closed at $132.65 and slipped further in pre-market trading as short-term pressure persisted. However, the company reported solid quarterly results that highlighted expanding AI revenue and improving operating performance.
AI Revenue Strengthens Baidu’s Core Momentum
Baidu reported a sharp rise in AI-powered revenue as its new product mix advanced across several segments. The business generated RMB 11.3 billion in the quarter and marked a 48% yearly jump. AI now represents a larger share of general operations and signals deeper enterprise adoption.
AI Cloud Infra produced strong subscription growth and continued to draw demand from enterprise workloads. Segment revenue reached RMB 5.8 billion and showed durable expansion across the full year. AI Applications crossed RMB 10 billion for 2025 and sustained stable usage.
AI-native marketing services maintained rapid growth as digital tools expanded across key platforms. Revenue reached RMB 2.7 billion and posted a notable yearly rise. Baidu App and ERNIE Assistant attracted high engagement across domestic users.
Robotaxi Network Expands Across Global Markets
Apollo Go advanced its driverless ride-hailing rollout and continued to scale commercial operations across several regions. The service delivered 3.4 million rides during the quarter and accelerated international testing. Its fleet surpassed 300 million autonomous kilometers with strong safety performance.
The network expanded into Europe, Asia and the Middle East as new permits supported broader trials. Operations launched in Abu Dhabi and partnered with mobility platforms in Dubai and London. New testing zones opened in Hong Kong and the Seoul metro region.
Apollo Go reached 26 cities and maintained steady operating growth as market access widened. The service continued to reinforce Baidu’s long-term automation roadmap. The company strengthened its global positioning within autonomous mobility.
Financial Results Highlight Mixed Margins but Solid Cash Strength
Total quarterly revenue reached RMB 32.7 billion and increased on a sequential basis. Operating income improved but remained constrained by higher administrative and research costs. Non-GAAP results delivered stronger margins and firmer cash contribution.
Baidu ended the year with RMB 294.1 billion in cash and investments. Operating cash flow turned positive in the second half and supported balance-sheet stability. Adjusted EBITDA showed consistent expansion across the platform.
The board approved a new share repurchase plan worth up to $5 billion. It also adopted a dividend policy that may issue payouts by late 2026. These actions reflect confidence in Baidu’s AI-driven strategy and capital structure.
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Filed under: News - @ February 26, 2026 12:24 pm