Baidu (BIDU) Stock Jumps as Company Announces First Dividend and $5 Billion Buyback

TLDR

• Baidu announced its first-ever dividend policy and a new $5 billion stock buyback program running through December 2028
• The company’s shares jumped more than 5% in after-hours U.S. trading and surged in Hong Kong following the announcement
• Baidu sits on $42.7 billion in cash reserves as of September 2025, positioning it to return capital to shareholders
• The stock has declined 14% over five consecutive sessions despite gaining 55% over the past year
• Analysts maintain a Strong Buy rating with an average price target of $169.59, implying 22.9% upside potential

Baidu made waves in the market with a dual announcement that marked a turning point in its capital allocation strategy. The Chinese tech company revealed its first-ever dividend policy and approved a $5 billion share repurchase program.

Baidu, Inc., BIDU

U.S.-listed shares jumped more than 5% in after-hours trading. Hong Kong shares surged during morning trading sessions.

The buyback program will run through December 31, 2028. Baidu plans to conduct repurchases through open market transactions at prevailing prices. The company stated the program will proceed subject to market conditions and applicable regulations.

Baidu’s board approved the dividend policy for the first time in company history. The first dividend payment is expected in 2026. Future dividend amounts and timing will depend on board decisions based on profits, business needs, and market conditions.

The company currently holds $42.7 billion in cash reserves as of September 2025. This robust financial position supports the new shareholder return initiatives. Baidu completed a previous $5 billion buyback program from 2023 through 2025.

Joining Industry Peers

Baidu’s move aligns with strategies from larger Chinese tech rivals. Tencent Holdings unveiled a $10 billion buyback last year. Alibaba launched a $25 billion share repurchase program in 2024.

The company emphasized its commitment to creating long-term shareholder value. “With our substantial cash reserves and sound financial management capabilities, we aim to create and continuously enhance long-term value for our shareholders through our proactive shareholder return initiatives,” the company stated.

Recent Stock Performance

The announcement comes after a challenging period for Baidu shares. The stock declined for five straight sessions. It lost about 14% cumulatively during that stretch.

Over the past 12 months, Baidu gained 55%. This trails peer Alibaba, which surged 60% during the same period.

InvestingPro data shows the company trades below its Fair Value. The company maintains more cash than debt on its balance sheet. Current market capitalization stands at approximately $49.8 billion.

Analysts maintain a Strong Buy consensus rating on the stock. The rating is based on 12 Buy recommendations and two Hold ratings. The average price target sits at $169.59, representing 22.9% upside from current levels.

The company’s stock price reached $137.95 following the announcement. Baidu trades on NASDAQ under the ticker “BIDU” and on the Hong Kong Stock Exchange under “9888.”

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