Baidu AI growth mitigates revenue slip as driverless rides surge

Baidu (NASDAQ:BIDU) reported a significant expansion in its core artificial intelligence business for the first quarter of 2026, helping cushion the impact of a marginal sequential contraction in its top-line revenue.

The Beijing-based technology company posted unaudited total revenue of RMB32.1 billion, representing a 2% decline quarter-over-quarter.

Within its core divisions, Baidu General Business revenue remained flat sequentially at RMB26 billion, while Baidu Core AI-powered Business revenue climbed 49% year-over-year to RMB13.6 billion, capturing 52% of the general business total.

The company's profitability metrics remained steady during the three-month period.

Operating income was reported at RMB3.2 billion, representing a 10% operating margin, while non-GAAP operating income reached RMB3.8 billion, or a 12% margin.

Net income attributable to Baidu was RMB3.4 billion, yielding an 11% net margin, and adjusted EBITDA stood at RMB6.0 billion with a 19% margin.

Baidu maintained a strong liquidity position, concluding the first quarter with total cash and investments of RMB279.3 billion.

Operating cash flow for the period reached RMB2.7 billion.

The company also continued its capital return program, deploying US$172 million toward share repurchases.

In operational developments, Baidu's autonomous vehicle division recorded significant volume expansion.

The Apollo Go robotaxi platform delivered 3.2 million fully driverless rides during the first quarter, marking a year-over-year increase of more than 120%.

Meanwhile, user traffic on the company's flagship mobile ecosystem remained stable, with monthly active users for the Baidu App reaching 655 million by the end of March 2026