Baidu (BIDU) is set to report its first-quarter earnings for 2025 on May 21, and investor interest is heating up. The company has been focusing on artificial intelligence (AI) initiatives, including its Ernie chatbot and AI Cloud services, to drive growth amid a competitive Chinese tech landscape. As the Q1 2025 earnings release approaches, investors are watching for updates on Baidu’s AI advancements and their impact on the company’s financial health. Meanwhile, analysts are moderately bullish on BIDU stock ahead of the release.
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What to Expect from Baidu’s Q1 Earnings
Wall Street analysts expect Baidu to report an EPS (earnings per share) of $1.99 for Q1. The company reported earnings of $2.76 in the same quarter a year ago. According to the TipRanks Analyst Forecasts Page, Baidu’s sales forecast for Q1 is $4.29 billion, with estimates ranging between $4.19 billion and $4.53 billion.
In the previous quarter, Baidu reported a slight 2% year-over-year decline in revenue to $4.68 billion, still beating analyst expectations. Notably, the company’s AI Cloud segment showed strong momentum, with fourth-quarter revenue growing 26% year over year, a trend analysts expect to continue.
Citi Analyst Maintains Buy Rating on BIDU Stock
Last month, Citi analyst Alicia Yap maintained a Buy rating on Baidu stock with a price target of $139.00, suggesting a potential upside of 55% from current levels.
Yap’s rating reflects Baidu’s strong progress in AI and its growth potential in the field. At the Baidu Create 2025 event in April, the company introduced a range of new AI tools that offer better performance at lower costs. Yap noted that these updates show Baidu’s focus on developing advanced AI technology and building strong infrastructure, helping it stay competitive in China’s fast-growing AI market.
Is Baidu Stock a Good Buy Now?
Overall, Wall Street has a Moderate Buy consensus rating on BIDU stock, based on two Buys and three Holds assigned in the last three months. The average Baidu share price target of $113.34 implies 27% upside potential from current levels.
