Baidu delivered fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per ADS reaching RMB10.62 compared to the RMB9.65 consensus estimate. The Chinese tech giant reported revenue of RMB32.7 billion ($4.68 billion), matching Street forecasts as AI-driven growth offset broader market challenges.

AI Cloud Infrastructure emerged as a standout performer, generating RMB5.8 billion in revenue with subscription-based AI accelerator services surging 143% year over year. The company's AI Applications segment reached RMB2.7 billion in the quarter, with full-year 2025 revenue from this division exceeding RMB10 billion. CEO Robin Li highlighted that AI has become Baidu's new core business, driving enterprise adoption of the company's full-stack capabilities.

Despite the earnings beat, Baidu shares slipped about 3% in premarket trading, reflecting investor caution about the company's ability to monetize its AI investments. The company reported adjusted operating income of RMB3.0 billion ($424 million) and adjusted EBITDA of RMB4.7 billion ($676 million), maintaining healthy margins in a competitive Chinese tech landscape.