Baidu Set to Report Q2 Earnings: What's in Store for the Stock?

Baidu BIDU is scheduled to release second-quarter 2025 results on Aug. 20.The Zacks Consensus Estimate for Baidu’s second-quarter revenues is pegged at $4.06 billion, indicating a decline of 1.54% on a year-over-year basis.The consensus mark for second-quarter earnings is pegged at $ 1.74 per share, which is down by 4 cents over the past 30 days, indicating a decline of 39.79% from the year-ago quarter's reported figure.Baidu beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, with an average surprise of 21.64%.Baidu, Inc. Price and EPS Surprise Baidu, Inc. price-eps-surprise | Baidu, Inc. QuoteLet us see how things have shaped up for the upcoming announcement.Key Factors to Note for BIDU’s Q2 EarningsBaidu is expected to have faced the second quarter of 2025 on a softer footing, as the first quarter delivered only 3% year-over-year revenue growth, highlighting limited momentum outside of AI Cloud. AI Cloud momentum is likely to remain the main driver, while advertising and streaming are anticipated to continue weighing on overall performance.AI Cloud adoption and new steps in intelligent driving, including Apollo Go’s expansion into Dubai, Abu Dhabi and Hong Kong, are expected to provide some support in the to-be-reported quarter. However, these initiatives are unlikely to offset pressure in core operations. Online marketing revenue, which declined 6% year over year in the first quarter, is expected to stay under strain as advertisers curb spending in a weak macro environment. Rising costs tied to cloud infrastructure, traffic acquisition and promotional activity are anticipated to further squeeze margins despite incremental top-line growth. iQIYI revenues declined 9% year over year in the first quarter, and are expected to remain a drag on consolidated results.Product launches in April, including ERNIE 4.5 Turbo, ERNIE X1 Turbo and PaddlePaddle 3.0, are expected to stay in the early stages of adoption with limited contribution. Aggressive pricing and elevated investment spending are anticipated to further pressure profitability and free cash flow.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.Baidu has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Stocks to ConsiderHere are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:BuildABear Workshop BBW currently has an Earnings ESP of +11.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.BuildABear Workshop shares have jumped 20.8% year to date. BuildABear Workshop is slated to report its second-quarter 2025 results on Aug. 28. Okta OKTA has an Earnings ESP of +2.29% and a Zacks Rank #3 at present. Okta shares have appreciated 16.8% year to date. Okta is slated to report its second-quarter fiscal 2026 results on Aug. 26.BILL Holdings BILL currently has an Earnings ESP of +2.94% and a Zacks Rank #3.BILL Holdings shares have declined 52.3% in the year-to-date period. BILL Holdings is scheduled to release fourth-quarter fiscal 2025 results on Aug. 27.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU): Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks