Baidu (BIDU) Q2 2026 Earnings Call: GPU Cloud Revenue Jumps 283%
Source Tradingkey
Key Takeaways
- Baidu reported Q2 2026 revenue of RMB 31.3 billion, down 4% year over year and 2% quarter over quarter. Net income attributable to Baidu was RMB 2.3 billion, with diluted earnings per ADS of RMB 5.74.
- Baidu Core AI-powered Business generated RMB 12.5 billion, accounting for half of Baidu General Business revenue. AI Cloud Infra revenue increased approximately 50% year over year.
- GPU Cloud was the main growth driver, with revenue rising 283% year over year after 184% growth in Q1. Management said AI Cloud Infra could maintain strong growth in the second half, with potential for further acceleration.
- Non-GAAP operating income was RMB 3.8 billion, representing a 12% margin. AI Cloud Infra profit and margins improved year over year, supported by a higher GPU Cloud revenue mix.
- Online marketing remained under pressure as competition for user attention intensified and Baidu deliberately limited AI search monetization. Management expects this pressure to persist in the second half.
- Apollo Go completed around 1 million fully driverless operational rides during the quarter. Cumulative public rides exceeded 23 million as of June 2026, while international commercialization advanced in Dubai, Hong Kong and London.
Key Financial Data
| Metric | Q2 2026 | Change / Commentary |
|---|---|---|
| Total revenue | RMB 31.3 billion | Down 4% YoY and 2% QoQ |
| Baidu General Business revenue | RMB 25.2 billion | Down 4% YoY and 3% QoQ |
| Baidu Core AI-powered Business revenue | RMB 12.5 billion | Half of Baidu General Business revenue |
| iQIYI revenue | RMB 6.3 billion | Down 5% YoY; up 1% QoQ |
| Cost of revenues | RMB 19.1 billion | Up 4% YoY; down 3% QoQ |
| Operating expenses | RMB 9.2 billion | Down 17% YoY and 1% QoQ |
| Operating income | RMB 3.0 billion | 10% operating margin |
| Non-GAAP operating income | RMB 3.8 billion | 12% non-GAAP operating margin |
| Net income attributable to Baidu | RMB 2.3 billion | 7% net margin |
| Non-GAAP net income attributable to Baidu | RMB 2.6 billion | 8% non-GAAP net margin |
| Diluted earnings per ADS | RMB 5.74 | GAAP basis |
| Non-GAAP diluted earnings per ADS | RMB 7.22 | Non-GAAP basis |
| Operating cash flow | RMB 3.4 billion | Q2 2026 |
| Total cash and investments | RMB 283.1 billion | As of June 30, 2026 |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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