Q2 2026 Baidu Inc Earnings Call Transcript
Key Points
- AI cloud infrastructure revenue grew 50% year over year, with GPU cloud revenue surging 283%, indicating strong demand and market outperformance.
- Kunlunxin AI chips are gaining traction with robust demand across industries, supported by a clear product roadmap and expanding software ecosystem.
- Apollo Go achieved significant global milestones, including first fully driverless testing in Hong Kong and commercial operations in Dubai, with cumulative rides exceeding 23 million.
- AI applications like Miaoda and digital humans are showing strong user engagement and commercial traction, with Miaoda MAU up 67% since March and digital human deployments scaling.
- The company is pursuing a dual-primary listing in Hong Kong, which is expected to broaden its investor base and enhance share liquidity.
- Total revenue decreased 4% year over year, with Baidu General Business revenue down 4% and online marketing under pressure due to AI transformation and intense competition.
- Apollo Go ride volume was temporarily affected by operational adjustments in certain domestic cities due to regulatory considerations, impacting Q2 performance.
- Advertising business is expected to remain under pressure in the second half as the company prioritizes AI search user experience over monetization.
- Net income attributable to Baidu declined, with total other income net dropping significantly year over year due to lower fair value gains and foreign exchange losses.
- The company is in a critical AI investment cycle, with costs related to AI cloud business increasing, which may pressure near-term profitability despite long-term growth potential.
Hello and thank you for standing by for Baidu's second-quarter 2026 earnings conference call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions) I would now like to turn the meeting over to your host for today's conference, Juan Lin, Baidu's Director of Investor Relations.
Hello, everyone, and welcome to Baidu's second-quarter 2026 earnings conference call. Baidu's earnings release was distributed earlier today and you can find a copy on our website as well as on Newswire services.
On the call today, we have Robin Li, our Co-Founder and CEO; Julius Rong Luo, our EVP in charge of Baidu Mobile Ecosystem Group, MEG; Dou Shen, our EVP in charge of Baidu AI Cloud Group, ACG; and Henry Haijian He, our CFO.
After our prepared remarks, we will hold a Q&A session. Please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking
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