"Baidu Inc. posted a steep 42% drop in quarterly profit, signaling that its aggressive pivot toward artificial intelligence is cannibalizing its core advertising business faster than it can generate new growth."
"The Beijing-based search giant reported a 4.1% year-on-year decline in revenue to 32.7 billion yuan ($4.7 billion) for the fourth quarter of 2025, marking its second consecutive quarter of shrinking topline figures."
Baidu experienced a significant 42% decline in quarterly profit, indicating that its strategic shift toward artificial intelligence is undermining its traditional advertising business more rapidly than it generates alternative revenue. The company reported a 4.1% year-on-year revenue decrease to 32.7 billion yuan ($4.7 billion) in the fourth quarter of 2025. This marks the second consecutive quarter of declining revenue, suggesting sustained pressure on the search giant's financial performance as it navigates the transition from its core advertising model to AI-driven services.
Read at Caixinglobal
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