Baidu stock rose after reporting fiscal second-quarter results, with revenue at $4.57 billion, down 4% Y/Y. Adjusted earnings per ADS exceeded expectations at $1.90. Core revenue fell 2% to $3.66 billion, while non-online marketing revenue surged 34% to $1.40 billion, led by AI Cloud. iQIYI revenue missed estimates at $925.3 million, down 11% Y/Y. Expenses increased, with SG&A up 5% and R&D down 13% Y/Y. Adjusted EBITDA margin dropped 700 basis points to 20%. Cash position remained strong at $17.34 billion, but free cash flow outflow was a concern at $653 million. CEO Robin Li highlighted strong AI Cloud revenue growth and AI transformation in search business as key drivers of long-term growth. Baidu stock faces competition from Alibaba Group in the AI technology space, gaining 6% year-to-date.

Read more at Yahoo Finance: Baidu’s AI Cloud And Robotaxis Become Growth Engines As Ad Business Slows