Baidu, Inc. (NASDAQ:BIDU) shares slipped after the company reported its fourth-quarter results on Thursday.
The company reported quarterly revenue of $4.682 billion (32.7 billion Chinese yuan), a decrease of 4% year-on-year (Y/Y). The analysts’ consensus estimate stood at $4.680 billion.
A Reuters report said China’s largest search engine operator, Baidu, posted a 4% decline in revenue for the December quarter, as continued weakness in its core advertising business weighed on results, partially offset by strong growth in its cloud segment.
The quarterly revenue rose 5% quarter-on-quarter, primarily due to an increase in Baidu Core AI-powered Business.
Baidu’s adjusted earnings per American Depositary Share (ADS) came in at $1.52, exceeding the forecast of $1.12.
AI Cloud and Applications Drive Growth
Baidu delivered solid fourth-quarter 2025 revenue across its AI Cloud, AI Applications, and AI-native marketing segments, alongside continued Robotaxi growth.
AI Cloud Infra generated 5.8 billion yuan in fourth-quarter revenue, with subscription-based AI accelerator infrastructure revenue rising 143% Y/Y.
AI Applications produced 2.7 billion yuan in fourth-quarter revenue.
Baidu also formed the Personal …