Baidu reported second-quarter revenue of 31.325 billion yuan, down 4% year over year and 2% from the previous quarter, as a continued decline in advertising offset rapid growth in AI infrastructure. Adjusted diluted earnings were 7.22 yuan per ADS, about 26% below market expectations, while GAAP diluted earnings were 5.74 yuan per ADS. Net profit attributable to Baidu was 2.3 billion yuan, equal to a 7% net margin. Adjusted operating profit of 3.785 billion yuan and adjusted EBITDA of 6.15 billion yuan both topped expectations, indicating that operating cost control remained relatively solid even as heavier AI investment continued to pressure bottom-line earnings. Baidu's General Business revenue was 25.183 billion yuan, down 4%, while iQIYI revenue fell 5% to 6.287 billion yuan. Online Marketing Services revenue dropped 19% to 13.1 billion yuan, extending the contraction in the company's core advertising business. AI-related revenue totaled 12.5 billion yuan, accounting for about half of General Business revenue for a second consecutive quarter. Within that mix, AI cloud infrastructure revenue rose 50% to 7.3 billion yuan and GPU cloud revenue surged 283%, accelerating from the prior quarter, while AI applications revenue increased 3% to 2.5 billion yuan and AI-native marketing services revenue was roughly flat at 2.6 billion yuan. The figures underline Baidu's transition toward AI as infrastructure demand grows faster than application-layer monetization. Baidu ended the quarter with total cash and investments of 283.1 billion yuan and generated 3.4 billion yuan in operating cash flow. The company did not provide quarterly or full-year guidance, leaving investors focused on whether strong growth in computing infrastructure can translate into broader AI commercial returns over time.