Baidu Q1 Results Highlight AI Growth, Robin Li Sees Agents as Key Market

Baidu reported Q1 2026 revenue of RMB 32.1 billion, down slightly year‑on‑year, with net profit falling sharply to RMB 3.445 billion. Non‑GAAP profit was RMB 4.3 billion, down 33.5%. Adjusted earnings per ADS were RMB 12.06.

AI has become the core of Baidu’s business, contributing RMB 13.6 billion, or 52% of general revenue, marking the first time AI surpassed half. Smart Cloud drove growth, with AI Cloud revenue up 79% and GPU Cloud up 184%. AI applications and AI‑native marketing also contributed, while traditional advertising and iQIYI weighed on results.

Founder Robin Li said foundational models will continue to advance, but the bigger opportunity lies in intelligent agents and applications. He argued that people will pay for these services, creating a market larger than tokens.

Cloud growth brought higher costs, with sales expenses rising to RMB 19.6 billion. Baidu highlighted Kunlun Chip P800’s validation and delivery of large clusters, and Tianchi super node’s upcoming launch with improved throughput and inference efficiency. Wenxin 5.1 has gone online, adapted to multiple mainstream models. Executives acknowledged domestic chips still face capacity and supply challenges but said Kunlun Chip offers cost advantages and long‑term cloud profitability.

Apollo Go expanded globally, providing 3.2 million driverless rides in Q1, up 120% year‑on‑year, with cumulative rides exceeding 22 million across 27 cities. Services are operating in Dubai, with tests planned in Switzerland and London alongside Uber and Lyft. Total autonomous mileage surpassed 330 million km.

Cash flow improved, with net operating cash inflow of RMB 2.7 billion versus outflow last year. Baidu held RMB 279.3 billion in cash and investments. The company repurchased USD 172 million in shares, pledging to balance AI investment with shareholder returns.