Baidu and iQIYI 1Q26 Review and NDR Takeaways

Goldman Sachs reviews Baidu's 1Q26 results, highlighting 53% growth in AI Cloud and a major shift toward AI-powered revenue. While Baidu's cloud outlook remains strong, iQIYI faces estimate cuts due to weak membership and advertising trends.

Key Takeaways

• 1.Baidu's AI Cloud business saw significant acceleration in 1Q26, growing 53% yoy, driven by strong inference demand and GPU-based cloud usage (up 184% yoy).
• 2.Management expects Baidu's AI-powered business contribution to overtake its legacy businesses by the end of 2026, representing a fundamental shift in revenue mix.
• 3.iQIYI estimates were lowered due to weaker-than-expected membership and advertising outlook, leading to a target price reduction to US$1.6.

Table of Contents

• NDR takeaways
• Key highlights
• Financials
• Disclosure Appendix
• Target price history table(s)

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