Time-Sensitive: Allegations Focus on Alleged Revenue Sustainability Representations, as the Lawsuit Asserts Baidu Did Not Disclose That Total Revenue Was Reasonably Likely to Decline Because AI Cloud Growth Was Insufficient to Offset Legacy Deterioration.

NEW YORK, Sept. 30, 2026 /PRNewswire/ — Levi & Korsinsky, LLP alerts purchasers of Baidu, Inc. (NASDAQ: BIDU) securities of a pending securities class action covering the period November 18, 2025 through August 17, 2026. Check if you might be eligible to recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Baidu American Depositary Shares declined 12.73%, or $13.25 per ADS, on August 18, 2026, after the Company reported second quarter 2026 results showing Baidu General Business revenue down 4% year over year and its AI-powered business down 8% quarter over quarter to RMB12.5 billion. The Court has set November 13, 2026 as the deadline to apply for lead plaintiff appointment.

What Management Allegedly Knew About the Revenue Trajectory

The action claims that shareholders were repeatedly assured that AI Cloud expansion was cushioning the erosion of legacy search advertising, while the Company did not disclose that total revenue was reasonably likely to decline because AI growth was allegedly insufficient and unsustainable relative to the speed of that erosion. As alleged, the fiscal 2025 annual report stated the Company was “not aware of any trends, uncertainties, demands, commitments or events” reasonably likely to have a material and adverse effect on total revenue.

AI Monetization Trends in China’s Search Advertising Market

• Online Marketing Services accounted for roughly 53.1% of total revenue in the third quarter of 2025 while falling 17.6% year over year.
• Fiscal year 2025 total revenue decreased 3% year over year to RMB129.1 billion ($18.46 billion).
• First quarter 2026 AI-powered business revenue was reported above RMB13.6 billion, up 49% year over year.
• By the second quarter of 2026, that same AI-powered business fell 8% sequentially to RMB12.5 billion, with year-over-year growth decelerating to 25%.
• AI Cloud Infra, its largest component, fell 17% quarter over quarter from RMB8.8 billion to RMB7.3 billion.
• Legacy Business revenue dropped 23% year over year to RMB10.4 billion in the second quarter of 2026.

Why Revenue Sustainability Allegedly Matters to Investors

The lawsuit asserts that the pace of AI monetization, not simply its existence, was the material fact purchasers needed in order to price the securities accurately.

“Investors deserve transparency about material risks that could affect their investments, including whether a newer business line is actually growing fast enough to offset a shrinking one. The complaint alleges that Baidu shareholders were not told total revenue was reasonably likely to decline even as AI Cloud growth was decelerating.” — Joseph E. Levi, Esq.

Learn more about the case or call (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report. Investors who suffered losses have until November 13, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the BIDU Lawsuit

Q: What is the BIDU lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is November 13, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: How much did BIDU stock drop? A: Shares fell approximately 12.73%, a decline of $13.25 per share, after the Company disclosed second quarter 2026 results showing Baidu General Business revenue down 4% year over year, Legacy Business revenue down 23% year over year, and the AI-powered business down 8% quarter over quarter. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the BIDU lawsuit allege? A: The complaint alleges Baidu, Inc. made materially false or misleading statements regarding the ability of its AI-powered business to mitigate rapid declines in its legacy online marketing business, and failed to disclose that total revenue was reasonably likely to decline, during the Class Period. When the second quarter 2026 revenue results were disclosed, the stock price declined sharply.

Q: What do BIDU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my BIDU shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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