Baidu (BIDU) stock is rallying in pre-market trading after the Chinese tech giant reported robust third-quarter results. The company reported a narrower sales decline, with revenue down 7% year-over-year to $4.38 billion, beating estimates of $4.33 billion. Similarly, adjusted earnings per share (EPS) fell 33% year-over-year to $1.56, also exceeding the consensus estimate of $1.08.
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Baidu’s Q3 beat was driven by continued progress in its artificial intelligence (AI) initiatives and the rapid expansion of its Apollo Go autonomous ride-hailing platform, which helped offset weakness in its core advertising business amid China’s challenging macroeconomic environment.
Recently, Baidu launched two advanced AI processors, M100 and M300, aimed to offer Chinese firms cost-effective, powerful, and home-grown computing capabilities. Plus, it unveiled its latest Ernie Model 5.0, which can process text, images, audio, and video simultaneously.
Commenting on the results, CFO Haijian He said, “Revenue from AI-powered businesses grew over 50% year-over-year to roughly RMB 10 billion in the third quarter of 2025, laying a solid foundation for sustainable long-term growth.”
Details from Baidu’s Q3 Results
Revenue from Baidu’s Core division fell to $3.46 billion due to an 18% year-over-year decline in its online marketing revenue, which fell to $2.16 billion. Conversely, non-online marketing revenue jumped 21% year-over-year to $1.31 billion, mainly driven by its solid AI Cloud business.
Baidu’s self-driving taxi service, Apollo Go, completed 3.1 million driverless rides in Q3, a 212% increase from the same period last year. In October 2025, it averaged over 250,000 driverless rides per week, and by November 2025, the total number of rides given to the public had surpassed 17 million.
Apollo Go is expanding globally. In Switzerland, it partnered with PostBus to launch an on-demand self-driving transport service. In Abu Dhabi, it strengthened local partnerships and received approval for fully driverless commercial operations. In Hong Kong, it expanded its testing area to include Kowloon and Kwun Tong District.
Is Baidu a Good Stock to Buy?
On TipRanks, BIDU stock has a Moderate Buy consensus rating based on 12 Buys, five Holds, and two Sell ratings. The average Baidu price target of $126.27 implies 10.7% upside potential from current levels. Year-to-date, Baidu stock has gained 35.4%.
Please note that these ratings were issued before the Q3 results and are subject to change once analysts review them.
