Baidu, Inc.: Baidu Announces First Quarter 2026 Results

BEIJING, May 18, 2026 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the first quarter ended March 31, 2026.

"In Q1, our Core AI-powered Business exceeded half of Baidu General Business revenue for the first time, marking a clear signal that AI has become the core driver of Baidu. AI Cloud Infra delivered exceptional momentum, powered by surging enterprise demand and the differentiated full-stack AI capabilities we have built over the years. Our AI Applications continued to gain traction across enterprises and individuals alike, further validating the commercial potential of our AI innovations. Meanwhile, Apollo Go sustained triple-digit growth in fully driverless rides while advancing its international expansion," said Robin Li, Co-founder and CEO of Baidu. "We see AI driving even greater value for Baidu in the quarters ahead."

"A few highlights from Q1: Revenue from Baidu Core AI-powered Business^[1] exceeded RMB 13.6 billion, up 49% year over year. Total revenue of Baidu General Business grew 2% year over year, returning to positive growth. Non-GAAP^[2] operating income of Baidu General Business increased 39% quarter over quarter to RMB 4.0 billion. Operating cash flow for Baidu remained positive at RMB 2.7 billion in Q1, reflecting continued improvement in our operating efficiency and overall business health." said Haijian He, CFO of Baidu.

Operational Highlights^[1]

Corporate

• Baidu ranked second globally in the Automotive category on Fast Company's 2026 Most Innovative Companies list, which recognized Apollo Go alongside Waymo as one of the world's leading robotaxi services. Fast Company highlighted Apollo Go as "leading the charge toward large-scale deployment in the global robotaxi industry."
• Baidu launched ERNIE 5.1 in May 2026, featuring stronger text capabilities, a more compact model size and enhanced reasoning capabilities. Recently on LMArena, ERNIE 5.1 ranked first among Chinese models on the text leaderboard and topped the LMArena search leaderboard among Chinese models, ranking fourth globally.
• Baidu released its annual ESG Report on May 11, 2026, which details Baidu's latest ESG policies and sustainability initiatives (http://esg.baidu.com/Uploads/Baidu_2025_ESG_Report.pdf).
• Baidu returned US$172 million to shareholders in Q1 2026 through the repurchases of its shares under the current share repurchase program.

Baidu Core AI-powered Business

AI Cloud Infra

• Revenue from AI Cloud Infra was RMB 8.8 billion in the first quarter of 2026, up 79% year over year.
• Revenue from GPU Cloud^[3] increased by 184% year over year in the first quarter of 2026.

AI Applications

• Revenue from AI Applications was RMB 2.5 billion in the first quarter of 2026, approximately flat year over year.
• Baidu launched DuMate, its general-purpose agent for everyday productivity, in March 2026, which autonomously executes complex, multi-step workflows across applications and files end-to-end.
• Baidu launched Miaoda 3.0, its vibe coding platform, at Baidu Create 2026, introducing enterprise and mobile versions and enabling the generation of standalone applications.
• Baidu launched Famou Agent 2.0, its self-evolving agent, at Baidu Create 2026. Famou Agent 2.0 has achieved state-of-the-art performance on MLE-Bench, a leading machine learning engineering benchmark, setting a new SOTA record.
• Baidu Wenku and Baidu Drive launched GenFlow 4.0 in April 2026, enhancing its agent capabilities for more efficient productivity workflows.

Robotaxi

• In the first quarter of 2026, Apollo Go, Baidu's autonomous ride-hailing service, delivered 3.2 million fully driverless operational rides with weekly rides peaking at over 350,000 in March. Total rides increased by over 120% year over year. As of April 2026, cumulative rides provided to the public by Apollo Go exceeded 22 million.
• Apollo Go continued to advance its global expansion. In Europe, Apollo Go is on track to commence open-road testing in Switzerland, and is expected to begin testing in London with Uber and Lyft soon. In the Middle East, Apollo Go's fully driverless operations are running across multiple zones in Dubai, with the Apollo Go App launched in March.
• As of May 2026, Apollo Go's global footprint reached 27 cities. To date, Apollo Go fleets have accumulated over 330 million autonomous kilometers, including over 220 million fully driverless autonomous kilometers, with an outstanding safety record.

AI-native Marketing Services

• Revenue from AI-native marketing services reached RMB 2.3 billion in the first quarter of 2026, up 36% year over year.
• Baidu App's MAUs reached 655 million in March 2026.

The following table sets forth selected revenue highlights for our Baidu Core AI-powered Business for the periods indicated:

	Baidu General Business
	Q1		Q4		Q1
(In billions)	2025		2025		2026		YoY		QoQ
	RMB		RMB		RMB
Baidu Core AI-powered Business[1]	9.1		11.3		13.6		49 %		21 %
- AI Cloud Infra	4.9		5.8		8.8		79 %		52 %
- AI Applications	2.5		2.7		2.5		0 %		(10 %)
- AI-native Marketing Services	1.7		2.7		2.3		36 %		(15 %)
% of Baidu General Business	36 %		43 %		52 %
Legacy Business[1]	14.3		12.3		10.2		(29 %)		(18 %)
Others[1]	2.1		2.5		2.2		6 %		(11 %)
Baidu General Business	25.5		26.1		26.0		2 %		0 %

[1] The revenue and operational data presented are derived from the Company's internal management accounts and records, which have not been audited.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).

[3] Revenue from GPU Cloud was previously referred to as subscription-based revenue from AI accelerator infrastructure. This change in naming does not imply any change in the underlying revenue definition or scope.

First Quarter 2026 Financial Results for Baidu^[2],[4]

Financial highlights

The following table sets forth revenue highlights for Baidu General Business:

	Q1		Q4		Q1
(In billions, unaudited)	2025		2025		2026		YoY		QoQ
	RMB		RMB		RMB
Online Marketing Services	16.0		15.1		12.6		(22 %)		(17 %)
Online Marketing Services % of Baidu General Business	63 %		58 %		48 %
Others	9.5		11.0		13.4		42 %		23 %
Others % of Baidu General Business	37 %		42 %		52 %
Baidu General Business	25.5		26.1		26.0		2 %		0 %

Revenue was RMB 32.1 billion ($4.65 billion), decreasing 2% quarter over quarter. Revenue from Baidu General Business was RMB26.0 billion ($3.77 billion), remaining flat quarter over quarter, among which the increase in others was primarily driven by the growth of AI Cloud business. Revenue from iQIYI was RMB6.2 billion ($903 million), decreasing 8% quarter over quarter.

Cost of revenue was RMB19.6 billion ($2.84 billion), increasing 7% quarter over quarter, primarily due to an increase in costs related to AI Cloud business, partially offset by decreases in content costs and traffic acquisition costs.

Selling, general and administrative expenses were RMB4.9 billion ($712 million), decreasing 34% quarter over quarter, primarily due to decreases in expected credit losses and personnel-related expenses.

Research and development expenses were RMB4.4 billion ($635 million), decreasing 22% quarter over quarter, primarily due to a decrease in personnel-related expenses.

Operating income was RMB3.2 billion ($463 million) and operating margin was 10%. Non-GAAP operating income was RMB3.8 billion ($552 million) and non-GAAP operating margin was 12%.

Total other income, net was RMB626 million ($91 million), compared to RMB1.2 billion last quarter.

Income tax expense was RMB528 million ($76 million), compared to RMB1.0 billion last quarter.

Net income attributable to Baidu was RMB3.4 billion ($499 million), net margin for Baidu was 11% and diluted earnings per ADS was RMB8.76 ($1.27). Non-GAAP net income attributable to Baidu was RMB4.3 billion ($628 million), non-GAAP net margin for Baidu was 14% and non-GAAP diluted earnings per ADS was RMB12.06 ($1.75).

Adjusted EBITDA was RMB6.0 billion ($863 million) and adjusted EBITDA margin was 19%.

We define total cash and investments as cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-to-maturity investments, and adjusted long-term investments. As of March 31, 2026, total cash and investments were RMB279.3 billion ($40.49 billion). Operating cash flow was RMB2.7 billion ($387 million).

For detailed financial information of Baidu General Business and iQIYI, please see the appended financial tables.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).

[4] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.8980 as of March 31, 2026, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

Conferenc e Call Information

Baidu's management will hold an earnings conference call at 8:00 AM on May 18, 2026, U.S. Eastern Time (8:00 PM on May 18, 2026, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q1 2026 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:
https://s1.c-conf.com/diamondpass/10054331-iu876y.html

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.

About Baidu

Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin, adjusted long-term investments and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, and one-time employee severance costs.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, one-time employee severance costs, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents non-GAAP operating income excluding depreciation of fixed assets, and amortization of intangible assets excluding those resulting from business combinations. Adjusted long-term investments represent long-term investments, net, with publicly listed equity method investments adjusted to fair value based on quoted market prices.

For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure."

Baidu, Inc.
Condensed Consolidated Statements of Income
(In millions except for per share (or ADS) information, unaudited)
		Three Months Ended
		March 31,		December 31,		March 31,		March 31,
		2025		2025		2026		2026
		RMB		RMB		RMB		US$(2)
Revenue		32,452		32,740		32,075		4,650
Costs and expenses:
Cost of revenue(1)		17,487		18,277		19,589		2,840
Selling, general and administrative(1)		5,913		7,389		4,912		712
Research and development(1)		4,544		5,591		4,381		635
Total costs and expenses		27,944		31,257		28,882		4,187
Operating income		4,508		1,483		3,193		463
Other income:
Interest income		2,664		2,051		1,963		285
Interest expense		(801)		(651)		(636)		(92)
Foreign exchange loss, net		(210)		(1,054)		(989)		(143)
Share of earnings from equity method investments		574		1,193		536		78
Others, net		2,260		(296)		(248)		(37)
Total other income, net		4,487		1,243		626		91
Income before income taxes		8,995		2,726		3,819		554
Income tax expense		1,177		1,029		528		76
Net income		7,818		1,697		3,291		478
Net income (loss) attributable to noncontrolling interests		101		(85)		(154)		(21)
Net income attributable to Baidu		7,717		1,782		3,445		499
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		21.86		4.48		9.38		1.36
-Diluted		21.59		3.71		8.76		1.27
Earnings per share for Class A and Class B ordinary shares:
-Basic		2.73		0.56		1.17		0.17
-Diluted		2.70		0.46		1.10		0.16
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,751		2,721		2,721		2,721
-Diluted		2,762		2,758		2,764		2,764
(1) Includes share-based compensation expenses as follows:
Cost of revenue		77		79		82		12
Selling, general and administrative		313		252		190		28
Research and development		361		398		291		42
Total share-based compensation expenses		751		729		563		82
(2) All translations from RMB to U.S. dollars are made at a rate of RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 2026 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
		December 31,		March 31,		March 31,
		2025		2026		2026
		RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		24,606		29,948		4,342
Restricted cash		225		584		85
Short-term investments, net		90,661		86,942		12,604
Accounts receivable, net		12,972		14,167		2,054
Amounts due from related parties		761		781		113
Other current assets, net		22,745		22,867		3,315
Total current assets		151,970		155,289		22,513
Non-current assets:
Fixed assets, net		26,281		26,848		3,892
Licensed copyrights, net		5,963		6,139		890
Produced content, net		14,575		14,578		2,113
Intangible assets, net		3,891		4,368		633
Goodwill		36,783		36,783		5,332
Long-term investments, net		44,918		42,944		6,226
Long-term time deposits and held-to-maturity investments		123,862		116,390		16,873
Amounts due from related parties		167		119		17
Deferred tax assets, net		4,582		5,266		763
Operating lease right-of-use assets		8,610		8,550		1,239
Other non-current assets		27,555		32,292		4,682
Total non-current assets		297,187		294,277		42,660
Total assets		449,157		449,566		65,173
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		7,626		3,979		577
Accounts payable and accrued liabilities		38,891		39,479		5,724
Customer deposits and deferred revenue		13,051		12,922		1,873
Deferred income		531		566		82
Long-term loans, current portion		14,765		14,979		2,171
Convertible senior notes, current portion		1,459		1		-
Notes payable, current portion		4,560		6,565		952
Amounts due to related parties		1,988		1,960		284
Operating lease liabilities		3,457		3,398		493
Total current liabilities		86,328		83,849		12,156
Non-current liabilities:
Deferred income		198		192		28
Deferred revenue		723		766		111
Amounts due to related parties		36		30		4
Long-term loans		3,369		7,612		1,104
Notes payable		51,021		46,990		6,812
Convertible senior notes		6,712		6,671		967
Deferred tax liabilities		4,985		5,211		755
Operating lease liabilities		4,108		3,941		571
Other non-current liabilities		1,951		1,956		284
Total non-current liabilities		73,103		73,369		10,636
Total liabilities		159,431		157,218		22,792
Redeemable noncontrolling interests		13,166		13,422		1,946
Equity
Total Baidu shareholders' equity		266,330		268,886		38,980
Noncontrolling interests		10,230		10,040		1,455
Total equity		276,560		278,926		40,435
Total liabilities, redeemable noncontrolling interests, and equity		449,157		449,566		65,173

Baidu, Inc.
Selected Information
(In millions, unaudited)
		Three months ended					Three months ended					Three months ended					Three months ended
		March 31, 2025 (RMB)					December 31, 2025 (RMB)					March 31, 2026 (RMB)					March 31, 2026 (US$)
		Baidu General Business	iQIYI	Elim & adj(2)	Baidu, Inc.		Baidu General Business	iQIYI	Elim & adj(2)	Baidu, Inc.		Baidu General Business	iQIYI	Elim & adj(2)	Baidu, Inc.		Baidu General Business	iQIYI	Elim & adj(2)	Baidu, Inc.
Revenue		25,463	7,186	(197)	32,452		26,112	6,794	(166)	32,740		26,001	6,226	(152)	32,075		3,769	903	(22)	4,650
Costs and expenses:
Cost of revenue(1)		12,246	5,406	(165)	17,487		13,042	5,376	(141)	18,277		14,498	5,233	(142)	19,589		2,102	759	(21)	2,840
Selling, general and administrative(1)		4,921	1,026	(34)	5,913		6,455	946	(12)	7,389		4,109	817	(14)	4,912		596	118	(2)	712
Research and development(1)		4,132	412	-	4,544		5,174	417	-	5,591		3,978	404	(1)	4,381		576	59	-	635
Total costs and expenses		21,299	6,844	(199)	27,944		24,671	6,739	(153)	31,257		22,585	6,454	(157)	28,882		3,274	936	(23)	4,187
Operating income (loss)		4,164	342	2	4,508		1,441	55	(13)	1,483		3,416	(228)	5	3,193		495	(33)	1	463
Operating margin		16 %	5 %		14 %		6 %	1 %		5 %		13 %	(4 %)		10 %
Add: total other income (loss), net		4,602	(115)	-	4,487		1,270	(27)	-	1,243		654	(28)	-	626		95	(4)	-	91
Less: income tax expense		1,136	41	-	1,177		993	36	-	1,029		491	37	-	528		71	5	-	76
Less: net income (loss) attributable to NCI		(3)	4	100(3)	101		(79)	(2)	(4)(3)	(85)		6	1	(161)(3)	(154)		1	-	(22)(3)	(21)
Net income (loss) attributable to Baidu		7,633	182	(98)	7,717		1,797	(6)	(9)	1,782		3,573	(294)	166	3,445		518	(42)	23	499
Net margin		30 %	3 %		24 %		7 %	(0 %)		5 %		14 %	(5 %)		11 %
Non-GAAP financial measures:
Operating income (loss) (non-GAAP)		4,872	459		5,333		2,837	143		2,967		3,950	(148)		3,807		573	(22)		552
Operating margin (non-GAAP)		19 %	6 %		16 %		11 %	2 %		9 %		15 %	(2 %)		12 %
Net income (loss) attributable to Baidu (non-GAAP)		6,330	304		6,469		3,869	109		3,907		4,433	(233)		4,332		643	(34)		628
Net margin (non-GAAP)		25 %	4 %		20 %		15 %	2 %		12 %		17 %	(4 %)		14 %
Adjusted EBITDA		6,712	495		7,209		4,544	196		4,727		6,050	(101)		5,954		877	(15)		863
Adjusted EBITDA margin		26 %	7 %		22 %		17 %	3 %		14 %		23 %	(2 %)		19 %
(1) Includes share-based compensation as follows:
Cost of revenue		50	27		77		56	23		79		59	23		82		9	3		12
Selling, general and administrative		257	56		313		219	33		252		161	29		190		24	4		28
Research and development		329	32		361		368	30		398		265	26		291		38	4		42
Total share-based compensation		636	115		751		643	86		729		485	78		563		71	11		82
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net income attributable to iQIYI noncontrolling interests

Baidu, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions,unaudited)
		Three months ended				Three months ended				Three months ended				Three months ended
		March 31, 2025 (RMB)				December 31, 2025 (RMB)				March 31, 2026 (RMB)				March 31, 2026 (US$)
		Baidu excl. iQIYI	iQIYI	Baidu, Inc.		Baidu excl. iQIYI	iQIYI	Baidu, Inc.		Baidu excl. iQIYI	iQIYI	Baidu, Inc.		Baidu excl. iQIYI	iQIYI	Baidu, Inc.
Net cash provided by (used in) operating activities		(6,340)	339	(6,001)		2,562	47	2,609		2,484	186	2,670		360	27	387
Net cash provided by (used in) investing activities		(1,175)	(30)	(1,205)		(17,439)	(947)	(18,386)		5,217	(275)	4,942		756	(40)	716
Net cash provided by (used in) financing activities		19,639	860	20,499		595	518	1,113		(702)	(933)	(1,635)		(102)	(135)	(237)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(5)	(1)	(6)		(295)	(10)	(305)		(241)	(35)	(276)		(34)	(5)	(39)
Net increase (decrease) in cash, cash equivalents and restricted cash		12,119	1,168	13,287		(14,577)	(392)	(14,969)		6,758	(1,057)	5,701		980	(153)	827
Cash, cash equivalents and restricted cash
At beginning of period		32,999	3,590	36,589		35,030	4,770	39,800		20,453	4,378	24,831		2,965	635	3,600
At end of period		45,118	4,758	49,876		20,453	4,378	24,831		27,211	3,321	30,532		3,945	482	4,427
Net cash provided by (used in) operating activities		(6,340)	339	(6,001)		2,562	47	2,609		2,484	186	2,670		360	27	387
Less: Capital expenditures		(2,869)	(31)	(2,900)		(1,952)	(20)	(1,972)		(5,839)	(77)	(5,916)		(846)	(11)	(857)
Free cash flow		(9,209)	308	(8,901)		610	27	637		(3,355)	109	(3,246)		(486)	16	(470)
Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows.

Baidu, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(In millions except for per ADS information, unaudited)
		Three months ended				Three months ended				Three months ended				Three months ended
		March 31, 2025 (RMB)				December 31, 2025 (RMB)				March 31, 2026 (RMB)				March 31, 2026 (US$)
		Baidu General Business	iQIYI	Baidu, Inc.		Baidu General Business	iQIYI	Baidu, Inc.		Baidu General Business	iQIYI	Baidu, Inc.		Baidu General Business	iQIYI	Baidu, Inc.
Operating income (loss)		4,164	342	4,508		1,441	55	1,483		3,416	(228)	3,193		495	(33)	463
Add: Share-based compensation expenses		636	115	751		643	86	729		485	78	563		71	11	82
Add: Amortization and impairment of intangible assets resulting from business combinations		72	2	74		45	2	47		49	2	51		7	-	7
Add: One-time employee severance costs		-	-	-		708	-	708		-	-	-		-	-	-
Operating income (loss) (non-GAAP)		4,872	459	5,333		2,837	143	2,967		3,950	(148)	3,807		573	(22)	552
Add: Depreciation of fixed assets and amortization of intangible assets(1)		1,840	36	1,876		1,707	53	1,760		2,100	47	2,147		304	7	311
Adjusted EBITDA		6,712	495	7,209		4,544	196	4,727		6,050	(101)	5,954		877	(15)	863
Net income (loss) attributable to Baidu		7,633	182	7,717		1,797	(6)	1,782		3,573	(294)	3,445		518	(42)	499
Add: Share-based compensation expenses		635	115	687		642	86	681		484	78	519		70	11	75
Add: Amortization and impairment of intangible assets resulting from business combinations		70	2	71		43	2	44		47	2	48		7	-	7
Add: One-time employee severance costs		-	-	-		708	-	708		-	-	-		-	-	-
Add: Disposal loss (gain)		(91)	-	(91)		31	-	31		(2)	-	(2)		-	-	-
Add: Impairment of long-term investments		-	2	1		59	10	64		79	9	83		11	1	12
Add: Fair value loss (gain) of long-term investments and exchangeable bonds		(1,889)	(2)	(1,890)		923	17	931		378	(28)	365		55	(4)	53
Add: Reconciling items on equity method investments(2)		(66)	5	(64)		(431)	-	(431)		(44)	-	(44)		(6)	-	(6)
Add: Tax effects on non-GAAP adjustments(3)		38	-	38		97	-	97		(82)	-	(82)		(12)	-	(12)
Net income (loss) attributable to Baidu (non-GAAP)		6,330	304	6,469		3,869	109	3,907		4,433	(233)	4,332		643	(34)	628
Diluted earnings per ADS				21.59				3.71				8.76				1.27
Add: Accretion of the redeemable noncontrolling interests				0.57				0.75				0.74				0.11
Add: Non-GAAP adjustments to earnings per ADS				(3.62)				6.16				2.56				0.37
Diluted earnings per ADS (non-GAAP)				18.54				10.62				12.06				1.75
(1) This represents amortization of intangible assets excluding those resulting from business combinations.
(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.
(3) This represents tax impact of all non-GAAP adjustments.

SOURCE Baidu, Inc.