Baidu announced its third-quarter 2025 financial results, reporting a 7% year-over-year revenue decline to 31.2 billion yuan, narrowly missing estimates. However, the company posted a significant earnings beat, with non-GAAP EPS of $11.09 far exceeding the consensus estimate of $7.80. The strong profitability was driven by the company's booming AI-related businesses, which grew over 50% year-over-year to approximately 10 billion yuan. This robust performance in AI, particularly in its cloud infrastructure and AI-native marketing services, helped to offset an 18% decline in online advertising revenue. Baidu's autonomous ride-hailing service, Apollo Go, also showed accelerated growth with a 212% increase in fully driverless rides. The capital markets reacted positively to the news, with Baidu's stock rising in Hong Kong trading as investors focused on the successful AI-driven growth that cushioned the advertising downturn.