China’s leading internet search company Baidu exceeded Wall Street expectations for its latest quarterly earnings on Thursday, powered by robust expansion in its cloud computing division that helped offset continued struggles in its core advertising revenue.
The tech giant announced quarterly earnings of 32.74 billion yuan (equivalent to $4.79 billion) for the three-month period ending in December. This figure surpassed the average analyst projection of 32.62 billion yuan, based on financial data gathered by LSEG.
The stronger-than-expected performance demonstrates how Baidu’s diversification into cloud services is providing a buffer against ongoing weakness in its traditional advertising business, which has faced headwinds in recent quarters.
