Chinese tech giant Baidu (BIDU) is set to release its third-quarter results before the market opens on Tuesday, November 18. Baidu’s Q3 performance was likely shaped by continued progress in its artificial intelligence (AI) initiatives and the rapid expansion of its Apollo Go autonomous ride-hailing platform. However, these gains may have been offset by weakness in its core advertising business amid China’s challenging macroeconomic environment.
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BIDU stock has fallen nearly 11% over the past five trading sessions, as investors reacted negatively to the launch of its Ernie Model 5.0, which lacked the innovative upgrades many expected. The new model can process text, images, audio, and video simultaneously. Despite the recent pullback, Baidu shares remain up about 38% in 2025, driven by the rollout of new in-house advanced models that have strengthened China’s position in the global AI race.
Expectations from Baidu
Wall Street expects Baidu to report adjusted earnings per share (EPS) of $1.08, significantly lower than the Q3FY24’s figure of $2.34. Similarly, revenue is expected to decline 9.5% year-over-year to $4.33 billion.
These reduced expectations reflect Baidu’s rising expenses related to infrastructure, model training, and autonomous mobility. Meanwhile, its online marketing segment, a major revenue contributor, had reported a 15% year-over-year decline in Q2FY25, and management previously guided for a further 25% decline in Q3.
Baidu remains China’s leading search engine, but its reliance on online advertising has become a challenge. The rise of AI-related search and a weaker Chinese economy have made it harder for the company to earn from advertising.
Apollo Go remains a major catalyst, having expanded globally by partnering with Uber (UBER) and Lyft (LYFT) to deploy thousands of driverless vehicles, and gained regulatory approval for autonomous testing in Dubai, paving the way for commercial rollout in the Middle East.
What Analysts Are Saying About Baidu
Baidu has missed analysts’ earnings estimates in only one of the past eight quarters. Ahead of the Q3 print, Citi analyst Alicia Yap reiterated her Buy rating on BIDU, while raising the price target from $143 to $166, implying 43.1% upside potential. Yap expects weaker advertising but steady cloud sales, and an in-line quarterly performance. Her updated target reflects a revised sum-of-the-parts valuation following the stock’s recent rally.
In the meantime, Deutsche Bank analyst Leo Chiang upgraded Baidu to a Buy rating from Hold and raised his price target from $90 to $160, implying 37.9% upside. Chiang expressed optimism about Baidu’s robust AI businesses in cloud computing, robotaxis, intelligent search, and AI chips. He highlighted that Baidu Cloud is growing quickly, and has become a global leader in autonomous ride-hailing, arguing that AI will power Baidu’s next stage of growth.
Is Baidu Stock a Buy, Hold, or Sell?
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 8.9% upside potential from current levels.
