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May 19, 2026 12:30 PM

Baidu Flat Despite Strong AI-Driven Q1 As Growth Engine Gains Traction

Shares of Baidu Inc (NASDAQ:BIDU) remained muted in early trading on Tuesday, despite a strong first-quarter (Q1) report.

The quarter marked an "important inflection point" for the company, analyst Fawne Jiang said. Baidu General Business’s AI-driven business contributed more than 50% of total revenue for the first time.

The IQIYI Analyst: Jiang reiterated a Buy rating and price target of $215.

The IQIYI Thesis: The quarter highlighted that AI is "increasingly becoming the company's core growth engine," Jiang said in the note.

Check out other analyst stock ratings.

Baidu Q1 Results

Baidu reported strong quarterly results, with revenues from Baidu General Business growing 2% year-on-year, returning to positive growth after several quarters of decline, the analyst stated. Core AI-powered revenue exceeded 50% of total revenue for the first time, growing 49% year-on-year to RMB 13.6 billion, ...