Baidu, Inc. Q4 FY2025 earnings call

• Announced proposed spin-off and separate listing of Kunlunxin. - AI Cloud Infra subscription-based revenue from AI accelerator infrastructure grew 143% year-over-year in Q4. - Apollo Go maintained robust momentum with 3.4 million fully driverless operational rides in the quarter. - Continued progress in foundation model Ernie, restructured model development organization. - Made progress in AI-powered search, digital humans, Miao Da, Yijian, FM Agent. - Established Personal Superintelligence Business Group (PSIG) unifying Baidu Wenku and Baidu Drive. - Apollo Go expanded globally with presence in 26 cities, including UK, Switzerland, Middle East, South Korea, Hong Kong.

Baidu General Business total revenue was RMB 26.1 billion. Revenue from core AI power business exceeded RMB 11 billion, accounting for 43% of Baidu General Business revenue. AI Cloud Infra subscription-based revenue from AI accelerator infrastructure grew 143% year-over-year in Q4. Apollo Go delivered 3.4 million fully driverless operational rides in the quarter with total rides up over 200% year over year. AI Cloud Infra revenue reached approx RMB 20 billion in 2025, up 34% year-over-year. Revenue from AI applications exceeded RMB 10 billion in 2025. ApolloGo achieved over 10 million fully driverless operational rides in 2025 alone with a global footprint of 26 cities. AI native marketing services revenue up 110% year-over-year.

• Confident in sustaining strong growth momentum in AI Cloud in 2026 with accelerating enterprise AI adoption. - Focused on accelerating ApolloGo expansion globally while improving operational excellence and unit economics. - Expect more cities to achieve positive unit economics over time. - Believes AI-powered business will become the majority of Baidu general business in foreseeable future.

Q: Related to model, how does management view competitive landscape and strategic rationale behind model iterations and organizational adjustments?

A: Robin said market is competitive, applications matter more than models. Model improvements guided by use cases. Restructured model team into two focused areas.

Q: About Baidu AI Clouds, key growth driver and outlook in 2026?

A: Dov said AI Cloud revenue reached RMB 30 billion in 2025. Subscription-based revenue from AI accelerator infrastructure grew 143% in Q4. Confident in growth in 2026 with enterprise AI adoption.

Q: View on current stage development of AI power business and when share may exceed 50% of general business?

A: Management said AI-powered business is core driver of revenue growth. Each part has strategic positioning. Confident in growth trajectory.

Q: Capital allocation framework and Kunlunxin's positioning?

A: Henry said recent initiatives reflect execution framework. New share repurchase program and dividend policy. Kunlunxin is critical infrastructure component.

Q: RoboTaxi overseas strategy in 2026 and unlocking value?

A: Gary said ApolloGo is global leader. Accelerating international expansion, leveraging partnerships. Focus on scaling operations, improving unit economics. Flexible on strategic options.

Q: Consumer-facing AI competition and Baidu's differentiation?

A: Julius said focus on user needs, enhancing products. Earning assistant enhanced, MAU over 200 million. Integrating MCP agents. Different approach with standalone app.

Q: AI-related CapEx and return profile?

A: Henry said will maintain AI investment density. Delivered good financial results. Operating cash flow positive. Explored alternative financing ways.