- In the fourth quarter, subscription revenue from Baidu AI computing infrastructure surged 143% year-on-year.
- Baidu's new AI businesses accounted for 43% of its general business revenue in the fourth quarter, up from 39% in the previous quarter.
Baidu's fourth-quarter revenue slightly exceeded market expectations, with robust expansion in its new artificial intelligence (AI) businesses offsetting weakness in the traditional advertising market.
According to financial results released Thursday, the Chinese tech giant reported fourth-quarter revenue of RMB 32.74 billion ($4.68 billion), a 5% increase quarter-on-quarter, slightly surpassing analysts' forecast of RMB 32.66 billion.
Most notably, its "AI new business" segment (encompassing intelligent cloud, AI applications, and marketing) now accounts for 43% of Baidu's general business revenue in the fourth quarter, up from 39% in the previous quarter.
For the full year 2025, Baidu's total AI business revenue surpassed RMB 40 billion, a 48% year-on-year increase, solidifying its position as the core engine driving the company's growth.
"2025 is the pivotal year when AI becomes Baidu's new core," said Robin Li, Baidu's founder and CEO, in a statement. "As our AI-first strategy takes shape, we are confident in our ability to create lasting value in the AI era."
This strategic shift is reflected in concrete business metrics. In the fourth quarter, subscription revenue from Baidu intelligent cloud's AI computing infrastructure surged 143% year-on-year.
Meanwhile, its autonomous ride-hailing service Apollo Go recorded 3.4 million ride orders during the quarter — a staggering 200% year-on-year increase — while accelerating commercial testing and market expansion in Europe, the Middle East, and Asia.
Despite a 3% year-on-year decline in total revenue to RMB 129.1 billion for 2025 due to contraction in traditional advertising, stringent cost control significantly improved profitability and cash generation.
In the fourth quarter, net income attributable to Baidu under non-GAAP reached RMB 3.9 billion.
Additionally, the company's operating cash flow turned positive in the second half of the year, generating a total of RMB 3.9 billion, reversing the pressure faced in the first half.
Against the backdrop of stabilizing performance and ample cash reserves (reaching RMB 294.1 billion), Baidu announced a series of measures aimed at boosting investor confidence: the board approved a new share repurchase program of up to $5 billion and adopted its first-ever dividend policy.
Furthermore, Baidu is advancing the spin-off and independent listing of its AI chip division, Kunlunxin, to unlock greater valuation potential for shareholders.
