# Baidu (BIDU.US)

Canonical: https://gigainvestors.com/s/BIDU

Analysis as of: 2026-10-16T07:26:56.012Z. Financial observations: FY2003–FY2026.

Listing currency: USD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $82.56 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.35×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.15×

- FY2019: 0.06×

- FY2020: 0.13×

- FY2021: 0.08×

- FY2022: 0.13×

- FY2023: 0.16×

- FY2024: 0.16×

- FY2025: 0.08×

- LTM to Jun 2026: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 12.3%

- ROIC, second-lowest year: 6.9%

- Typical minus recent gross margin: 5.0 pp

- Typical gross margin (annual median): 48.9%

- Recent gross margin (lower of latest and 3-year median): 43.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.6%

- ROIC including acquisitions, ten-year median: 20.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 25.6%

- FY2017: 55.5%

- FY2018: 18.3%

- FY2019: 6.9%

- FY2020: 14.6%

- FY2021: 7.4%

- FY2022: 10.0%

- FY2023: 16.7%

- FY2024: 9.3%

- FY2025: 4.0%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.80×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 121B

- Net income, five-year total: CNY 67B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 10.5 pp

- Working capital / revenue, final three-year average: -8.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.14×

- FY2022: 2.55×

- FY2023: 1.50×

- FY2024: 1.52×

- FY2025: 2.42×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 25.6% vs 9.3%

- Per-share earnings: 52.10 to 57.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: CNY -82B

- Cumulative retained earnings: CNY 92B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.2%

- Per-share value change: CNY 5.32

- Per-share value, starting three-year median: CNY 52.10

- Per-share value, ending three-year median: CNY 57.43

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 1.7%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 7.5B

- Cumulative net income, 10 years: CNY 149B

- ROIC, first three-year median: 25.6%

- ROIC, last three-year median: 9.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 33.41

- FY2017: CNY 52.10

- FY2018: CNY 78.68

- FY2019: CNY 5.94

- FY2020: CNY 65.71

- FY2021: CNY 29.05

- FY2022: CNY 21.59

- FY2023: CNY 57.43

- FY2024: CNY 68.30

- FY2025: CNY 16.21

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 1.9%

- Receivables to sales index (DSRI): 1.30×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.8%

- FY2017: -5.8%

- FY2018: -2.8%

- FY2019: -8.8%

- FY2020: -0.5%

- FY2021: -2.6%

- FY2022: -4.8%

- FY2023: -4.0%

- FY2024: 0.6%

- FY2025: 1.9%

## Holders

- [David Tepper](https://gigainvestors.com/AM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 49% since Oct 2021 · "Moody’s cuts Baidu outlook to negative as AI capital costs weigh on margins" (finance.yahoo.com, Sep 2026) · sales -1.4%

Story as of 2026-10-16T09:58:23.965Z; price observation 2026-10-15.

- 2025-09-09: Baidu Stock Rises as New AI Model Tops Google and OpenAI ([finance.yahoo.com](https://finance.yahoo.com/news/baidu-stock-rises-ai-model-222716493.html))

- 2025-12-22: Baidu and Uber Stock Rises After Partnership to Test Robotaxis in London ([finance.yahoo.com](https://finance.yahoo.com/news/baidu-uber-stock-rises-partnership-141857453.html))

- 2026-01-22: Why Baidu (BIDU) Is Up 7.8% After Launching Driverless Robotaxis In Abu Dhabi ([finance.yahoo.com](https://finance.yahoo.com/news/why-baidu-bidu-7-8-070911983.html))

- 2026-02-26: China's Baidu revenue falls 4% as AI cloud growth fails to offset ad weakness ([finance.yahoo.com](https://finance.yahoo.com/news/chinas-baidu-tops-quarterly-revenue-090441118.html))

- 2026-04-23: Baidu Inc. (BIDU) Gains Analyst Backing on AI Cloud Strength Despite Ad Weakness ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/baidu-inc-bidu-gains-analyst-133301816.html))

- 2026-08-19: Why Baidu (BIDU) Is Down 14.2% After Weak Q2 Earnings And Faster AI-First Shift ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/why-baidu-bidu-down-14-151244965.html))

### Sales · FY2025–2026

sales -1.4%; source https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm; observed 2026-03-17.

- FY2017: CNY 85B 

- FY2018: CNY 102B 

- FY2019: CNY 107B 

- FY2020: CNY 107B 

- FY2021: CNY 124B 

- FY2022: CNY 124B 

- FY2023: CNY 135B 

- FY2024: CNY 133B 

- FY2025: CNY 129B 

- FY2026: CNY 127B 

### Gross margin · FY2025

gross margin 43.9%; source https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm; observed 2026-03-17.

- FY2016: 50.0% 

- FY2017: 49.2% 

- FY2018: 49.4% 

- FY2019: 41.5% 

- FY2020: 48.5% 

- FY2021: 48.3% 

- FY2022: 48.3% 

- FY2023: 51.7% 

- FY2024: 50.3% 

- FY2025: 43.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in internet content & information; annual sales are CNY 129.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm (filed 2026-03-17); FY2025: revenue 129079000000; grossProfit 56643000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BIDU.US: Baidu, Inc. provides internet content, value-added telecommunication-based, internet map, and online audio and video services in the People's Republic of China. It operates in two segments, Baidu General Business and iQIYI. The Baidu General Business segment offers products and services for mobile ecosystem, AI cloud, and intelligent driving. This segment operates Baidu App that enables users to access search, feed, content, and other services through mobile devices; and Haokan, which offers a range of various user generated and professionally produced short videos. It also provides a portfolio of knowledge and information products, including Baidu Wiki, which features columns and videos, such as encyclopedia of intangible cultural heritage, digital museum and recorder of history; Baidu Knows, an online community where users can pose questions to other users, such as individuals, professionals, and enterprises; Baidu Experience, an online platform where users share daily knowledge and experience; ERNIE Bot, new AI-native product that serves as a multi-round conversational AI assistant on both PC and mobile; and Baidu Post, a social media that allows users to post text, image, audio and video content, and reply to original curation forming valuable discussion groups, as well as livestreaming services, including live streaming and AI-powered digital human livestreaming. In addition, the company offers DuerOS smart assistant for the Chinese language; Apollo Go autonomous ride-hailing service; online marketing services; Baidu Maps, a voice-enabled mobile app providing users with travel-related services; and AI chips. The iQIYI segment produces and distributes professionally produced content. This segment offers online entertainment video services, including online videos, experience services, online games, comics, and others. The company was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.

### Why customers stay

Margins ranged from 43.9% to 51.7% during 2023–25; it earns 12.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2023: grossProfit / revenue = 51.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2024: grossProfit / revenue = 50.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm (filed 2026-03-17); FY2025: grossProfit / revenue = 43.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); 10-year return on capital observations [[2016,0.2561216134316998],[2017,0.5550582938855523],[2018,0.18334515754467134],[2019,0.06870938827293287],[2020,0.14614251335520462],[2021,0.07388080626792713],[2022,0.10015694615707925],[2023,0.1672809110450491],[2024,0.09312391899169001],[2025,0.0398547169329133]]; median 0.12314972975614194. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 8.8% of cash earnings; paid dividends in 5 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2016: growth capex 702850275.7449894; upkeep 9806917724.25501; cash acquisitions 0; owner earnings 10152351275.74499. Growth capex plus acquisitions / owner earnings = 0.06923029519518015.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2017: growth capex 2203000000; upkeep 11748000000; cash acquisitions 553000000; owner earnings 18301000000. Growth capex plus acquisitions / owner earnings = 0.15059286377793563.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2018: growth capex 2864028994.259159; upkeep 19497971005.74084; cash acquisitions 1978000000; owner earnings 24280182994.25916. Growth capex plus acquisitions / owner earnings = 0.19942308488383367.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2019: growth capex 0; upkeep 6428000000; cash acquisitions 969000000; owner earnings 17767000000. Growth capex plus acquisitions / owner earnings = 0.054539314459391.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2020: growth capex 0; upkeep 5084000000; cash acquisitions 2396000000; owner earnings 40102000000. Growth capex plus acquisitions / owner earnings = 0.059747643509051915.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2021: growth capex 0; upkeep 10896000000; cash acquisitions 247000000; owner earnings 21889000000. Growth capex plus acquisitions / owner earnings = 0.011284206679153913.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2022: growth capex 0; upkeep 8393000000; cash acquisitions 14000000; owner earnings 19250000000. Growth capex plus acquisitions / owner earnings = 0.0007272727272727272.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2023: growth capex 0; upkeep 11295000000; cash acquisitions 115000000; owner earnings 30477000000. Growth capex plus acquisitions / owner earnings = 0.003773337270728746.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2024: growth capex 0; upkeep 8134000000; owner earnings 36147000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm (filed 2026-03-17); FY2025: growth capex 0; upkeep 13417000000; cash acquisitions 1188000000; owner earnings 13523000000. Growth capex plus acquisitions / owner earnings = 0.08785032906899357.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); Dividend observations: [[2016,0],[2017,35900000000],[2018,42828000000],[2019,11602000000],[2020,22284000000],[2021,24568000000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm (filed 2026-03-17); FY2025: cash repurchases 5385173000 CNY.

### Are managers owners

Insiders own 2.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BIDU.US SharesStats.PercentInsiders = 2.93 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.5 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); Closing price 82.56 USD; reporting-to-trading FX 0.14944; FY2025 annual sales per share 374.4133430021755; price multiple 1.4755417697904674. FY2025 cash earnings/share 39.22552574329224. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $176.86 per share

- 2016-11: $166.95 per share

- 2016-12: $164.41 per share

- 2017-01: $175.07 per share

- 2017-02: $174.13 per share

- 2017-03: $172.52 per share

- 2017-04: $180.23 per share

- 2017-05: $186.10 per share

- 2017-06: $178.86 per share

- 2017-07: $226.35 per share

- 2017-08: $228.05 per share

- 2017-09: $247.69 per share

- 2017-10: $243.94 per share

- 2017-11: $238.58 per share

- 2017-12: $234.21 per share

- 2018-01: $246.92 per share

- 2018-02: $252.34 per share

- 2018-03: $223.19 per share

- 2018-04: $250.90 per share

- 2018-05: $242.56 per share

- 2018-06: $243.00 per share

- 2018-07: $247.18 per share

- 2018-08: $226.48 per share

- 2018-09: $228.68 per share

- 2018-10: $190.06 per share

- 2018-11: $188.28 per share

- 2018-12: $158.60 per share

- 2019-01: $172.63 per share

- 2019-02: $162.54 per share

- 2019-03: $164.85 per share

- 2019-04: $166.23 per share

- 2019-05: $110.00 per share

- 2019-06: $117.36 per share

- 2019-07: $111.70 per share

- 2019-08: $104.47 per share

- 2019-09: $102.76 per share

- 2019-10: $101.85 per share

- 2019-11: $118.53 per share

- 2019-12: $126.40 per share

- 2020-01: $123.56 per share

- 2020-02: $119.98 per share

- 2020-03: $100.79 per share

- 2020-04: $100.93 per share

- 2020-05: $106.55 per share

- 2020-06: $119.89 per share

- 2020-07: $119.40 per share

- 2020-08: $124.57 per share

- 2020-09: $126.59 per share

- 2020-10: $133.05 per share

- 2020-11: $138.99 per share

- 2020-12: $216.24 per share

- 2021-01: $235.02 per share

- 2021-02: $283.46 per share

- 2021-03: $217.55 per share

- 2021-04: $210.33 per share

- 2021-05: $196.27 per share

- 2021-06: $203.90 per share

- 2021-07: $164.01 per share

- 2021-08: $157.02 per share

- 2021-09: $153.75 per share

- 2021-10: $162.24 per share

- 2021-11: $149.84 per share

- 2021-12: $148.79 per share

- 2022-01: $159.74 per share

- 2022-02: $152.44 per share

- 2022-03: $132.30 per share

- 2022-04: $124.17 per share

- 2022-05: $140.35 per share

- 2022-06: $148.73 per share

- 2022-07: $136.57 per share

- 2022-08: $143.97 per share

- 2022-09: $117.49 per share

- 2022-10: $76.57 per share

- 2022-11: $108.60 per share

- 2022-12: $114.38 per share

- 2023-01: $134.68 per share

- 2023-02: $137.69 per share

- 2023-03: $150.92 per share

- 2023-04: $120.61 per share

- 2023-05: $122.85 per share

- 2023-06: $136.91 per share

- 2023-07: $155.99 per share

- 2023-08: $142.83 per share

- 2023-09: $134.35 per share

- 2023-10: $105.00 per share

- 2023-11: $118.66 per share

- 2023-12: $119.09 per share

- 2024-01: $105.31 per share

- 2024-02: $101.33 per share

- 2024-03: $105.28 per share

- 2024-04: $103.40 per share

- 2024-05: $97.20 per share

- 2024-06: $86.48 per share

- 2024-07: $88.57 per share

- 2024-08: $84.62 per share

- 2024-09: $105.29 per share

- 2024-10: $91.23 per share

- 2024-11: $85.05 per share

- 2024-12: $84.31 per share

- 2025-01: $90.60 per share

- 2025-02: $86.45 per share

- 2025-03: $92.03 per share

- 2025-04: $87.82 per share

- 2025-05: $81.90 per share

- 2025-06: $85.76 per share

- 2025-07: $87.87 per share

- 2025-08: $95.30 per share

- 2025-09: $131.77 per share

- 2025-10: $120.87 per share

- 2025-11: $116.89 per share

- 2025-12: $130.66 per share

- 2026-01: $153.18 per share

- 2026-02: $124.44 per share

- 2026-03: $111.42 per share

- 2026-04: $126.53 per share

- 2026-05: $135.31 per share

- 2026-06: $114.29 per share

- 2026-07: $111.11 per share

- 2026-08: $95.28 per share

- 2026-09: $86.87 per share

- 2026-10: $82.56 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1329099/000119312526109289/d38065d20f.htm); period 2025-12-31, filed 2026-03-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.