Baidu (BIDU) Stock Drops After Q4 Profit Falls 66%

TLDR

• Baidu’s Q4 net profit dropped 66% year-over-year to 1.78 billion yuan, missing analyst estimates
• Revenue fell 4% to 32.74 billion yuan, marking the third straight quarter of decline
• AI-powered business revenue grew 48%, now making up 43% of general business revenue
• Apollo Go completed 3.4 million driverless rides in Q4, up over 200% year-over-year
• Ernie AI assistant hit 202 million monthly active users in December

Baidu’s fourth-quarter results came in below expectations, sending its American depositary receipts down 2.7% to $129.80 in premarket trading on Thursday.

Net profit fell 66% year-over-year to 1.78 billion yuan ($259 million). Analysts had penciled in 2.56 billion yuan, so this was a clear miss.

Revenue dropped 4% to 32.74 billion yuan for the three months ended December. That marks the third consecutive quarter of declining sales. A year earlier, Baidu posted revenue of 34.12 billion yuan and net income of 5.19 billion yuan.

Baidu, Inc., BIDU

For the full year, revenue slipped 3% while net profit slumped 76% to 5.59 billion yuan.

The weak numbers were driven largely by Baidu’s advertising business, which has been struggling in a tough economic environment. Soft consumer spending in China has weighed on ad budgets across the board.

AI Growth Isn’t Enough Yet

There was a bright side. Baidu’s AI-powered business — covering cloud infrastructure, autonomous vehicles, and AI applications — grew revenue 48% from a year ago to 11.3 billion yuan.

That segment now accounts for 43% of general business revenue, up from 39% in Q3.

AI cloud infrastructure revenue rose 34% to 5.8 billion yuan.

Ernie, Baidu’s AI assistant, crossed 200 million monthly active users in December. It’s integrated into both the Baidu search app and PC.

Apollo Go, its autonomous ride-hailing service, completed 3.4 million driverless rides in Q4, a jump of more than 200% year-over-year.

What’s Next for BIDU

Baidu restructured its earnings report this quarter to better reflect its AI-first focus. The company announced plans earlier this month for its first-ever dividend and a new $5 billion share buyback program.

Analysts have pointed to a potential IPO of Kunlunxin, Baidu’s AI chip unit, as a possible catalyst for the stock. Nomura analysts suggested the listing could be well-received given strong appetite for Chinese chip designers.

BIDU’s ADRs have fallen around 16% over the past month and are down more than 6% so far this year, after a nearly 60% gain in 2025.

At the time of reporting, BIDU ADRs were trading at $129.80, down 2.7% premarket.

The post Baidu (BIDU) Stock Drops After Q4 Profit Falls 66% appeared first on CoinCentral.