Baidu announced a new US$5 billion share repurchase program. The program remains effective through December 31, 2028.
The company also adopted its first-ever dividend policy. Baidu expects to declare the first dividend payment in 2026. The company aims to enhance long-term shareholder value by utilizing its substantial cash reserves.
The market received the announcement positively. Baidu's U.S.-listed shares jumped nearly 5% in after-hours trading.
Analysts view the move as bolstering investor confidence. This occurs as the company continues heavy investment in artificial intelligence amid a competitive landscape. The capital return plan was generally in line with expectations.