By Tracy Qu
Baidu is scheduled to report first-quarter results on Monday. Here's what you need to know:
NET PROFIT FORECAST: The Chinese search-engine company is expected to report a nearly 60% decline in net profit to 3.15 billion yuan, equivalent to $464.1 million, for the three months ended March, according to the consensus estimate of 9 analysts in a FactSet poll. It reported a net profit of 7.72 billion yuan in the year-earlier period.
REVENUE FORECAST: Baidu's revenue is expected to come in at 30.945 billion yuan for the quarter, according to FactSet, compared with 32.45 billion yuan a year earlier.
The company's Hong Kong-listed shares fell 20% in the first three months of the year, before paring some losses in recent weeks. The stock is about 3% higher year to date.
WHAT TO WATCH:
--CLOUD: Baidu might benefit from the solid performance of its artificial intelligence and chip business, Nomura analysts said in a research note. AI infrastructure revenue likely rose 60% from a year earlier during the quarter, thanks to the robust performance of its chip business, Kunlunxin, they noted. That may offset some headwinds from its weak advertising business, they said.
--CHIP UNIT IPO: Kunlunxin appears to be on track for an initial public offering, Barclays analysts said in a note. The IPO could come as early as the end of 2Q or early 3Q, the analysts said. Nomura analysts noted that the expected listing is a near-term catalyst for Baidu's stock. Investors will look for management's update on the possible IPO.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
May 15, 2026 03:31 ET (07:31 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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