Baidu Q1 Revenue Beats on AI Cloud Growth

Baidu reported a stronger-than-expected first-quarter performance, with revenue rising 3% to 32.45 billion yuan ($4.5 billion), surpassing analyst estimates amid a challenging Chinese economic environment and strong AI competition. Net income reached 7.72 billion yuan, and earnings per share significantly exceeded forecasts. Growth was largely driven by increased demand for Baidu's AI Cloud services, which helped offset a 6% decline in its core online marketing business. The results suggest some recovery in China's advertising sector and underscore Baidu’s strategic focus on artificial intelligence solutions. Following the earnings report, Baidu’s U.S.-listed shares rose over 1.4% in premarket trading. The company also received several positive earnings revisions in recent months, signaling investor confidence in its financial health and direction.