Baidu Inc. announced a new $5 billion share‑repurchase program that will run through December 31 2028, allowing the company to buy back shares on the open market or through other permissible means with periodic reviews to adjust the program’s size and terms.
The board also approved a dividend policy for ordinary shares, marking the first time Baidu will issue regular or special dividends. The policy will be funded by operating profits and, if necessary, proceeds from non‑core asset disposals or other investment returns, with the first dividend expected in 2026.
Baidu’s decision comes on the back of a strong cash position—$42.7 billion in reserves as of September 2025—and a strategic pivot toward AI‑native businesses, in which the company has invested more than RMB 100 billion since March 2023. The buyback and dividend signal confidence that the company can sustain its AI investments while returning value to shareholders, even as AI revenue growth carries thinner margins than legacy advertising income.
Management emphasized disciplined execution, noting that the repurchase program will be carried out “on a regular basis in a disciplined and transparent manner, guided by a strategic focus beyond short‑term stock price fluctuations.” The dividend policy was described as a “clear, balanced framework that aligns shareholder returns with the continued strategic growth of the company.”
Analysts had expected earnings per share of $0.17 for the quarter; Baidu reported $0.21, a $0.04 or 24% beat. While the company’s revenue growth was modest, the earnings beat was driven by cost controls and a favorable mix shift toward higher‑margin AI services, offsetting margin compression in legacy advertising segments. Management acknowledged competitive headwinds in the AI market but expressed confidence that the company’s scale and investment in AI infrastructure will sustain long‑term profitability.
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