Baidu set to release Q1 earnings, expected revenue decline, challenges in advertising, but strong innovation.

From Nasdaq: 2025-05-20 10:46:00

Baidu, Inc. (BIDU) is set to release its first-quarter 2025 results on May 21, before the market opens. In the last quarter, Baidu reported non-GAAP EPS of $2.63, beating estimates. Total revenues were $4.68 billion, down 2% year over year but surpassing analyst expectations by 2.5%.

The Zacks Consensus Estimate for Baidu’s first-quarter EPS has risen to $1.96 from $1.65 in the past 60 days. Revenues are estimated at $4.3 billion, indicating a 1.6% year-over-year decline. BIDU is expected to see a 1.7% revenue growth in 2025.

Baidu’s first-quarter performance is expected to be impacted by macroeconomic headwinds and a slow advertising recovery. The core online marketing business saw a 7% decline in the last quarter. The AI Cloud segment remains a bright spot, with revenues growing 26% year over year.

Despite challenges, Baidu’s stock has outperformed the industry and sector. The company is trading at a discount relative to historical metrics, with a Value Score of A. BIDU has shown strong innovation and financials, making it an attractive hold.

Baidu’s AI transformation is gaining momentum, with advancements in AI capabilities and generative AI tools. While short-term earnings may face pressure, the company’s long-term potential in AI monetization and cloud business is promising. BIDU remains a stock worth watching for potential growth.



Read more at Nasdaq: Baidu Gears Up to Post Q1 Earnings: Buy, Sell or Hold the Stock?