Operating margins have deteriorated from 18.2% in 2023Q3 to a thin 4.5% by 2025Q4, reflecting significant pressure on core profitability.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Sales/Revenue | 129.08B | 133.13B | 134.6B | 123.67B | 124.49B | 107.07B | 107.41B | 102.28B | 84.81B | 70.55B | 66.38B | 49.05B | 31.94B | 22.31B | 14.5B | 7.92B | 4.45B | 4.45B | 1.74B | 3.2B | 319.21M | 117.45M | 319.21M |
| Revenue Growth % | -3.04% | -1.09% | 8.83% | -0.66% | 16.27% | -0.32% | 5.02% | 20.6% | 20.21% | 6.28% | 35.33% | 53.56% | 43.21% | 53.83% | 83.2% | 77.96% | 0% | 154.97% | -45.46% | 901.91% | 171.79% | -63.21% | - |
| Cost of Goods Sold | 72.44B | 66.1B | 65.03B | 63.94B | 64.31B | 55.16B | 62.85B | 51.74B | 43.06B | 35.28B | 27.46B | 18.89B | 11.47B | 6.45B | 3.9B | 2.15B | 1.62B | 1.62B | 645.41M | 1.16B | 104.4M | 41.19M | 103.43M |
| COGS % of Revenue | 56.12% | 49.65% | 48.32% | 51.7% | 51.66% | 51.51% | 58.51% | 50.59% | 50.78% | 50.01% | 41.36% | 38.5% | 35.91% | 28.91% | 26.87% | 27.15% | 36.34% | 36.34% | 37% | 36.13% | 32.71% | 35.07% | 32.4% |
| Gross Profit | 56.64B | 67.02B | 69.57B | 59.74B | 60.18B | 51.92B | 44.56B | 50.53B | 41.75B | 35.27B | 38.92B | 30.17B | 20.47B | 15.86B | 10.6B | 5.77B | 2.83B | 2.83B | 1.1B | 2.04B | 214.81M | 76.26M | 215.79M |
| Gross Margin % | 43.88% | 50.35% | 51.69% | 48.3% | 48.34% | 48.49% | 41.49% | 49.41% | 49.22% | 49.99% | 58.64% | 61.5% | 64.09% | 71.09% | 73.13% | 72.85% | 63.66% | 63.66% | 63% | 63.87% | 67.29% | 64.93% | 67.6% |
| Gross Profit Growth % | -15.49% | -3.66% | 16.45% | -0.73% | 15.92% | 16.5% | -11.81% | 21.05% | 18.36% | -9.39% | 29.03% | 47.36% | 29.1% | 49.54% | 83.91% | 103.63% | 0% | 157.64% | -46.2% | 850.96% | 181.69% | -64.66% | - |
| Operating Expenses | 62.47B | 45.75B | 47.71B | 43.83B | 49.66B | 37.58B | 38.26B | 35B | 26.06B | 25.22B | 27.25B | 17.36B | 9.28B | 4.81B | 3.03B | 1.81B | 1.23B | 1.23B | 551.87M | 946.06M | 178.97M | 65.25M | 179.94M |
| OpEx % of Revenue | 48.39% | 34.37% | 35.45% | 35.44% | 39.89% | 35.09% | 35.62% | 34.22% | 30.72% | 35.75% | 41.05% | 35.4% | 29.05% | 21.55% | 20.88% | 22.83% | 27.58% | 27.58% | 31.64% | 29.58% | 56.07% | 55.56% | 56.37% |
| Selling, General & Admin | 25.84B | 23.62B | 23.52B | 20.51B | 24.72B | 18.06B | 19.91B | 19.23B | 13.13B | 15.07B | 17.08B | 10.38B | 5.17B | 2.5B | 1.69B | 1.09B | 803.99M | 803.99M | 411.16M | 659.8M | 134.77M | 50.72M | 141.24M |
| SG&A % of Revenue | 20.02% | 17.74% | 17.47% | 16.59% | 19.86% | 16.87% | 18.54% | 18.8% | 15.48% | 21.36% | 25.72% | 21.17% | 16.2% | 11.21% | 11.67% | 13.76% | 18.08% | 18.08% | 23.57% | 20.63% | 42.22% | 43.19% | 44.25% |
| Research & Development | 20.43B | 22.13B | 24.19B | 23.32B | 24.94B | 19.51B | 18.35B | 15.77B | 12.93B | 10.15B | 10.18B | 6.98B | 4.11B | 2.3B | 1.33B | 718.04M | 422.62M | 422.62M | 140.7M | 286.26M | 44.2M | 14.53M | 34.41M |
| R&D % of Revenue | 15.83% | 16.63% | 17.97% | 18.85% | 20.03% | 18.22% | 17.08% | 15.42% | 15.24% | 14.39% | 15.33% | 14.23% | 12.86% | 10.33% | 9.2% | 9.07% | 9.5% | 9.5% | 8.07% | 8.95% | 13.85% | 12.37% | 10.78% |
| Other Operating Expenses | 16.19B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.3M |
| Operating Income | -5.82B | 21.27B | 21.86B | 15.91B | 10.52B | 14.34B | 6.31B | 15.53B | 15.69B | 10.05B | 11.67B | 12.8B | 11.19B | 11.05B | 7.58B | 3.96B | 1.6B | 1.6B | 547.15M | 1.1B | 35.84M | 11M | 35.84M |
| Operating Margin % | -4.51% | 15.98% | 16.24% | 12.87% | 8.45% | 13.39% | 5.87% | 15.18% | 18.5% | 14.24% | 17.58% | 26.1% | 35.04% | 49.54% | 52.25% | 50.02% | 36.08% | 36.08% | 31.37% | 34.29% | 11.23% | 9.37% | 11.23% |
| Operating Income Growth % | -127.38% | -2.68% | 37.36% | 51.27% | -26.65% | 127.37% | -59.39% | -1.03% | 56.14% | -13.91% | -8.84% | 14.4% | 1.27% | 45.86% | 91.39% | 146.66% | 0% | 193.32% | -50.11% | 2959.83% | 225.8% | -69.31% | - |
| EBITDA | 8.39B | 35.9B | 36.76B | 30.64B | 26.96B | 32.52B | 25.47B | 31.9B | 27.44B | 18.38B | 17.52B | 16.75B | 13.81B | 12.55B | 8.46B | 4.4B | 1.89B | 1.68B | 728.09M | 1.17B | 40.73M | 20.94M | 40.73M |
| EBITDA Margin % | 6.5% | 26.97% | 27.31% | 24.77% | 21.65% | 30.37% | 23.71% | 31.19% | 32.35% | 26.05% | 26.39% | 34.14% | 43.24% | 56.25% | 58.35% | 55.59% | 42.4% | 37.67% | 41.74% | 36.49% | 12.76% | 17.83% | 12.76% |
| EBITDA Growth % | -76.63% | -2.36% | 20% | 13.65% | -17.11% | 27.69% | -20.16% | 16.25% | 49.32% | 4.89% | 4.61% | 21.25% | 10.08% | 48.28% | 92.3% | 133.35% | 12.55% | 130.11% | -37.62% | 2765.57% | 94.48% | -48.58% | - |
| D&A (Non-Cash Add-back) | 14.21B | 14.63B | 14.91B | 14.72B | 16.44B | 18.18B | 19.16B | 16.37B | 11.75B | 8.33B | 5.85B | 3.94B | 2.62B | 1.5B | 884.91M | 441.35M | 280.71M | 70.44M | 180.94M | 70.44M | 4.89M | 9.94M | 4.88M |
| EBIT | 10.08B | 31.45B | 28.45B | 13.03B | 14.2B | 26.19B | 2.62B | 29.21B | 22.9B | 15.67B | 38.95B | 15.11B | 12.66B | 12.07B | 7.89B | 4.1B | 1.6B | 1.6B | 547.15M | 1.1B | 35.84M | 11M | 35.84M |
| Net Interest Income | 809.35M | 5.14B | 4.76B | 3.33B | 2.13B | 2.25B | 3.1B | 2.57B | 1.54B | 1.18B | 1.32B | 1.36B | 861.46M | 758.61M | 335.65M | 67.12M | 32.66M | 48.76M | 49.01M | 41.78M | 13.58M | 1.14M | 13.58M |
| Interest Income | 1.2B | 7.96B | 8.01B | 6.25B | 5.55B | 5.36B | 6.06B | 4.45B | 3.15B | 2.34B | 2.36B | 1.99B | 1.31B | 866.47M | 335.65M | 67.12M | 32.66M | 48.76M | 49.01M | 41.78M | 13.58M | 1.14M | 13.58M |
| Interest Expense | 387.29M | 2.82B | 3.25B | 2.91B | 3.42B | 3.1B | 2.96B | 1.88B | 1.61B | 1.16B | 1.04B | 628.57M | 447.08M | 107.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 12.54B | 7.35B | 3.34B | -5.8B | 260M | 8.75B | -6.65B | 11.79B | 5.59B | 4.46B | 26.23B | 1.68B | 1.02B | 914.12M | 232.52M | 102.39M | 78.18M | 78.18M | 69.06M | 67.44M | 13.67M | 1.48M | 13.67M |
| Pretax Income | 6.72B | 28.62B | 25.2B | 10.11B | 10.78B | 23.09B | -340M | 27.32B | 21.28B | 14.51B | 37.91B | 14.48B | 12.22B | 11.97B | 7.81B | 4.06B | 1.68B | 1.68B | 616.22M | 1.16B | 49.52M | 12.48M | 49.52M |
| Pretax Margin % | 5.2% | 21.5% | 18.72% | 8.18% | 8.66% | 21.56% | -0.32% | 26.72% | 25.1% | 20.57% | 57.1% | 29.53% | 38.24% | 53.64% | 53.85% | 51.31% | 37.84% | 37.84% | 35.32% | 36.4% | 15.51% | 10.63% | 15.51% |
| Income Tax | 1.26B | 4.45B | 3.65B | 2.58B | 3.19B | 4.06B | 1.95B | 4.74B | 3B | 2.91B | 5.47B | 2.23B | 1.83B | 1.57B | 1.19B | 536M | 198.02M | 198.02M | -12.75M | 116.07M | 1.91M | 480.13K | 1.91M |
| Effective Tax Rate % | 18.75% | 15.54% | 14.48% | 25.49% | 29.57% | 17.6% | -572.94% | 17.36% | 14.07% | 20.08% | 14.44% | 15.4% | 14.97% | 13.16% | 15.22% | 13.2% | 11.76% | 11.76% | -2.07% | 9.97% | 3.86% | 3.85% | 3.86% |
| Net Income | 5.59B | 23.76B | 20.32B | 7.56B | 10.23B | 22.47B | 2.06B | 27.57B | 18.3B | 11.63B | 33.66B | 13.19B | 10.52B | 10.46B | 6.64B | 3.53B | 1.49B | 1.05B | 628.97M | 1.05B | 47.6M | 12M | 47.6M |
| Net Margin % | 4.33% | 17.85% | 15.09% | 6.11% | 8.21% | 20.99% | 1.92% | 26.96% | 21.58% | 16.49% | 50.71% | 26.88% | 32.93% | 46.88% | 45.78% | 44.54% | 33.39% | 23.56% | 36.06% | 32.77% | 14.91% | 10.22% | 14.91% |
| Net Income Growth % | -76.48% | 16.96% | 168.75% | -26.08% | -54.49% | 992.46% | -92.54% | 50.66% | 57.33% | -65.45% | 155.28% | 25.36% | 0.6% | 57.5% | 88.32% | 137.37% | 41.69% | 66.64% | -39.99% | 2101.68% | 296.6% | -74.79% | - |
| Net Income (Continuing) | 5.46B | 24.18B | 21.55B | 7.53B | 7.59B | 19.03B | -2.29B | 22.58B | 18.29B | 11.6B | 32.43B | 12.25B | 10.39B | 10.39B | 6.62B | 3.53B | 1.49B | 1.49B | 628.97M | 1.05B | 47.6M | 12.01M | 47.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 23.4B | 19.99B | 18.98B | 14.33B | 12.49B | 9.15B | 9.22B | 12.86B | 15.03B | 5.47B | 3.96B | 2.98B | 2.24B | 1.16B | 1.03B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 11.76 | 65.92 | 55.12 | 19.84 | 28.08 | 65.20 | 6.40 | 78.96 | 52.32 | 33.44 | 118.56 | 46.88 | 37.76 | 36.72 | 22.88 | 11.60 | 4.88 | 3.44 | 1.84 | 0.88 | 0.16 | 0.08 | 0.40 |
| EPS Growth % | -82.16% | 19.59% | 177.82% | -29.34% | -56.93% | 918.75% | -91.89% | 50.92% | 56.46% | -71.79% | 152.9% | 24.15% | 2.83% | 60.49% | 97.24% | 137.7% | 41.86% | 86.96% | 109.09% | 450% | 100% | -80% | - |
| EPS (Basic) | 13.28 | 66.48 | 55.84 | 20.00 | 28.64 | 65.84 | 6.48 | 79.04 | 52.72 | 33.52 | 118.88 | 47.12 | 37.92 | 36.80 | 22.88 | 11.60 | 4.88 | 3.44 | 1.92 | 0.88 | 0.16 | 0.08 | 0.40 |
| Diluted Shares Outstanding | 343M | 349.75M | 354.63M | 351.13M | 351.75M | 344.5M | 348.85M | 349.35M | 349.52M | 347.57M | 346.81M | 352.68M | 351.31M | 349.87M | 349.69M | 349.33M | 347.67M | 345.22M | 343.73M | 340.65M | 284.76M | 110.33M | 111.95M |
| Basic Shares Outstanding | 475.26M | 348.75M | 350.88M | 347.75M | 344.75M | 341.5M | 348.35M | 348.99M | 347.25M | 346.65M | 345.94M | 351.03M | 350.24M | 349.66M | 349.13M | 348.3M | 346.57M | 342.58M | 337.62M | 335.01M | 284.76M | 108.34M | 111.95M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 196.16% | - | 38.3% | 2.56% | - | - | - | - | - | - | - | - | - | - | - |
Macroeconomic and Regulatory Headwinds
According to recent financial disclosures, Baidu's quarterly revenue has plummeted from $35.0 billion in late 2023 to $4.6 billion by 2025Q4, representing a staggering year-over-year decline that suggests a fundamental erosion of the company's core advertising market share and broader macroeconomic sensitivity in China.
The precipitous drop in top-line performance indicates that the company's legacy search-based advertising model is struggling to maintain relevance against shifting digital consumption habits. Investors should monitor whether this contraction reflects a permanent loss of pricing power or a temporary cyclical trough exacerbated by the current domestic economic environment.
As reported in quarterly filings, gross margins have compressed from a peak of 52.7% in 2023Q3 to 44.2% in 2025Q4, highlighting the increasing difficulty of maintaining profitability amidst rising traffic acquisition costs and the integration of lower-margin AI-driven service offerings into the core business stack.
The narrowing spread between revenue and cost of goods sold suggests that Baidu is facing significant pressure to subsidize its ecosystem growth. This trend warrants further investigation into whether the company can achieve sufficient scale in its AI initiatives to offset the structural decline in its traditional high-margin search advertising business.
Based on the provided income statement data, operating margins have deteriorated significantly, falling from 18.2% in 2023Q3 to a thin 4.5% by 2025Q4, which indicates that the company is failing to achieve the necessary operating leverage to support its heavy R&D and infrastructure investment cycle.
The inability to scale operating income alongside revenue suggests that the company's cost structure remains overly rigid in the face of declining demand. This lack of efficiency may indicate that current AI-related expenditures are not yet yielding the expected productivity gains or competitive advantages required to stabilize the bottom line.
Analysis of recent financial statements reveals extreme volatility in net income, including a significant $1.6 billion loss in 2025Q3, which appears to be driven by non-operating items and inconsistent stock-based compensation charges that obscure the underlying cash-generating capability of the core search and cloud operations.
The wide variance between operating income and net income suggests that investors should be wary of headline EPS figures, which are heavily influenced by non-recurring charges and fair value adjustments. This lack of earnings predictability makes it difficult to assess the true normalized profitability of the firm's ongoing business activities.
While management emphasizes the long-term potential of its AI and autonomous driving divisions, the income statement data suggests that these investments are currently acting as a drag on consolidated performance, with no clear evidence of a near-term inflection point in profitability or revenue contribution from these segments.
Short-term observers may argue that the company is masking core business decay with speculative R&D spending that lacks a clear path to monetization. The market's current valuation may be justified if these AI bets fail to transition from cost centers to primary revenue drivers in the coming fiscal periods.
Quick answers to the most common questions about buying BIDU stock.
For fiscal year 2025, Baidu, Inc. (BIDU) reported total revenue of $129.08B. This represents a 40336.4% increase compared to $319.2M in 2003.
Baidu, Inc. (BIDU) is profitable, generating $5.59B in net income for the fiscal year ending 2025 with a net profit margin of 4.3%.
Baidu, Inc. (BIDU) reported an operating income of $-5823.0M, resulting in an operating profit margin of -4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Baidu, Inc. (BIDU) generated $56.64B in gross profit for the year, representing a gross profit margin of 43.9%. This demonstrates the company's core pricing power and production efficiency.