| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 41 | — | 17.3x | Around median | |
Growth | 17 | -4.2% | 7.1% | Bottom tier | |
Quality | 36 | -2.1% | 4.5% | Bottom tier | |
Safety | 42 | — | 2.6x | Around median | |
Capital Return | 31 | 0.00% | 0.06% | Bottom tier | |
Momentum | 11 | -24.7% | -1.6% | Bottom tier | |
Sentiment | 71 | 14 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Baidu, Inc. operates as an AI-centered technology group, combining search, digital advertising, cloud infrastructure, chips, models, applications, and autonomous mobility services, alongside the contribution from iQIYI. In fiscal Q2 2026, Baidu Core generated revenue of RMB 25.2 billion, including RMB 12.5 billion from AI-powered businesses, representing half of Baidu Core's revenue. The AI engine includes AI Cloud Infra, Kunlunxin chips, the Qianfan platform, and applications such as Miaoda, DuMate, Baidu Wenku, and Baidu Drive, while the search-related advertising business remained under pressure due to the transition to an AI-powered search experience and the delayed monetization of that experience.
Baidu's total revenue in fiscal Q2 2026 was approximately RMB 31.3 billion, down 4% year over year and 2% quarter over quarter. Baidu Core contributed RMB 25.2 billion, down 4% year over year, while iQIYI revenue was approximately RMB 6.3 billion, down 5% year over year and up 1% quarter over quarter. The company recorded operating income of RMB 3.0 billion at a 10% margin and non-GAAP operating income of RMB 3.8 billion at a 12% margin, while net income attributable to Baidu was approximately RMB 2.3 billion at a 7% net margin.
The annual results show a weaker trend in the core business and profitability: revenue declined from $134.6 billion in fiscal 2023 to $133.1 billion in fiscal 2024 and then to $129.1 billion in fiscal 2025. Gross profit fell from $69.6 billion in fiscal 2023 to $67.0 billion in fiscal 2024 and then to $56.6 billion in fiscal 2025, while net income dropped from $23.8 billion to $5.6 billion between fiscal 2024 and fiscal 2025. Therefore, renewed growth acceleration depends on AI Cloud Infra, AI applications, Kunlunxin, and Apollo Go expanding enough to offset pressure on advertising and iQIYI.
The analyst consensus is Buy, with an average price target of $118.5, versus a high target of $158 and a low target of $80; this wide dispersion reflects a fundamental difference of opinion regarding how quickly AI Cloud Infra, Kunlunxin, and Apollo Go can offset the advertising decline. The average target is approximately 28% below the 52-week high of $165.3, while the high target itself is approximately 4% below that peak, a valuation that recognizes the AI catalysts but does not ignore the 4% decline in fiscal Q2 2026 revenue and the drop in fiscal 2025 net income to $5.6 billion.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
AI Cloud Infra was the clearest driver, with its revenue growing 50% year over year in fiscal Q2 2026. Within this business, GPU Cloud revenue surged 283% after growing 184% in the previous quarter, marking the fourth consecutive quarter of triple-digit growth. Token-consumption revenue from external customers on Qianfan also increased more than ninefold, while integrated AI revenue grew approximately sixfold.
Total revenue was RMB 31.3 billion in fiscal Q2 2026, down 4% year over year, because AI growth did not fully offset pressure on other businesses. Baidu Core revenue declined 4% to RMB 25.2 billion, while iQIYI revenue fell 5% to RMB 6.3 billion. Management explained that the transition of search to AI and the delayed monetization of that experience, along with intensifying competition from chatbots, weighed on advertising.
Kunlunxin represents the chip layer in Baidu's integrated ecosystem, which extends from chips and cloud infrastructure to models and applications. In fiscal Q2 2026, the unit expanded compatibility to include Kimi K3, GLM5.2, Minimax M3, and Hunyuan 3, and continued developing M100 for large-scale inference. Management says demand for training and inference computing is strong and domestic supply is constrained, but the Kunlunxin listing process remained ongoing in August 2026 without an announced timeline.
Automated analysis for informational purposes only — not investment advice.
Apollo Go completed approximately one million fully driverless operational rides in fiscal Q2 2026 and surpassed 23 million cumulative public rides through June 2026. Fully driverless commercial operations began in Dubai in July 2026, while open-road testing in London with Uber and Lyft also started during the same month. Conversely, ride volume was temporarily affected by regulatory adjustments in certain Chinese cities, and operations in those cities began gradually resuming during August 2026.
Baidu recorded operating income of RMB 3.0 billion at a 10% margin and net income attributable to the company of RMB 2.3 billion at a 7% margin in fiscal Q2 2026. Non-GAAP operating income was RMB 3.8 billion, and non-GAAP net income was RMB 2.6 billion. As of June 30, 2026, liquidity and investments totaled RMB 283.1 billion, while operating cash flow for the quarter was RMB 3.4 billion.
Baidu's board approved pursuing the conversion in July 2026, and the company submitted its application and received acknowledgment of its receipt from the Hong Kong Stock Exchange. The move aims to broaden the investor base, improve share liquidity, and give the company greater flexibility in accessing the Hong Kong and U.S. capital markets. Management tied implementation during 2026 to approvals from shareholders and the Hong Kong Stock Exchange, as well as applicable conditions, while any inclusion in Stock Connect remains subject to eligibility requirements and review procedures.