On August 18, 2026, Baidu released its second-quarter earnings report for the fiscal year 2026, revealing total revenue of 31.325 billion yuan, a 4% decline year-over-year. Net profit attributable to the company stood at 2.319 billion yuan, down approximately 68% from the prior year, while non-GAAP net profit attributable to shareholders was 2.573 billion yuan, reflecting a 46% decrease compared to the same period last year.
Traditional online marketing revenue continued its significant downward trajectory, yet AI-driven new businesses have grown to account for half of Baidu's core operations. Notably, AI computing-related intelligent cloud infrastructure emerged as the fastest-growing segment. In the second quarter, core AI new business revenue reached 12.5 billion yuan, up 25% year-over-year, representing 50% of Baidu's general business income.
Within this AI segment, intelligent cloud infrastructure revenue hit 7.3 billion yuan, surging 50% year-over-year. AI application revenue reached 2.5 billion yuan, growing 3%, while AI-native marketing services generated 2.6 billion yuan, remaining roughly flat compared to last year. The most impressive performance came from GPU cloud services, where revenue skyrocketed 283% year-over-year, accelerating from the 184% growth rate recorded in the first quarter. Baidu attributed this surge to rising public cloud AI computing demand.
Cash flow metrics painted a challenging picture during the quarter. Operating cash flow totaled 3.436 billion yuan, but capital expenditures reached 11.390 billion yuan, a roughly 200% increase from the 3.8 billion yuan spent in the same period last year. This resulted in negative free cash flow of 7.954 billion yuan, compared to negative 4.677 billion yuan in the prior year. Excluding iQIYI, Baidu's standalone operating cash flow was 3.096 billion yuan, with capital expenditures of 11.370 billion yuan and free cash flow of negative 8.274 billion yuan.
On the expense front, research and development costs declined 10% year-over-year to 4.607 billion yuan, while sales and administrative expenses fell 23% to 4.596 billion yuan. If any information provided is inaccurate or infringes upon the rights of your company, organization, or individual, please contact us with an explanation, and we will cooperate fully with unconditional deletion requests.
Comments