Baidu’s AI Cloud Offsets Marketing Decline in Q1 2025 Earnings
Baidu Inc. reported a 3% year-over-year revenue increase to CNY32.45 billion ($4.47 billion) for Q1 2025, surpassing analyst expectations. The growth was driven by a 42% surge in AI Cloud revenue, which helped counterbalance a 6% drop in marketing income. Adjusted earnings per share stood at CNY18.54, significantly higher than the projected CNY14.74.
Despite the positive earnings, Baidu recorded a free cash FLOW outflow of $1.23 billion due to aggressive AI investments. The company also expanded its Apollo Go robotaxi service internationally, launching in Dubai and Abu Dhabi. Shares of Baidu (NASDAQ: BIDU) fell 3.36% to $86.34 following the earnings release.