Baidu (NASDAQ:BIDU) reported stronger-than-expected third-quarter profit and revenue on Tuesday, supported by continued growth in its cloud business, sending shares up more than 2% intra-day.
The company posted EPS of RMB11.12, well ahead of analyst expectations of RMB8.37. Total revenue fell 7% year over year to RMB31.17 billion but exceeded the RMB30.89 billion consensus.
Baidu Core revenue declined 7% to RMB24.7 billion ($3.46 billion). Online marketing sales dropped 18% to RMB15.3 billion ($2.16 billion), reflecting continued macroeconomic pressure, while non-online marketing revenue rose 21% to RMB9.3 billion ($1.31 billion), driven by ongoing AI Cloud growth.
AI Cloud Infrastructure maintained strong momentum, generating revenue of RMB4.2 billion, up 33% year over year. Subscription-based AI accelerator infrastructure proved especially strong, surging 128%.
Streaming subsidiary iQIYI reported revenue of RMB6.7 billion ($939 million), representing an 8% year-over-year decline.
