Baidu Announces Up to $5 Billion Share Repurchase Program

On February 5th, Baidu Inc. (hereinafter referred to as “Baidu”) announced that the board of directors has authorized a new share repurchase program, allowing the company to buy back up to $5 billion worth of its shares, valid until December 31, 2028. The board will regularly review the repurchase plan and may adjust its terms and scope accordingly.

Baidu stated that with its substantial cash reserves and sound financial management, the company actively returns value to shareholders through proactive measures, creating and continuously enhancing long-term value. This new plan will be executed periodically in a rigorous and transparent manner, guided by strategic priorities that go beyond short-term stock price fluctuations. Repurchases may be conducted on the open market at current market prices or through other legally permitted methods, depending on compliance with applicable regulations and market conditions.

Industry analysts told Securities Daily that this buyback not only optimizes the capital structure but also signals market confidence in the long-term value of AI business. Additionally, large-scale repurchases help stabilize the stock price and boost investor confidence, providing solid financial backing for high-investment projects like Wenxin large models, and demonstrating the company’s strategic shift from the “technology investment phase” to the “value realization phase.”

Furthermore, to further enhance shareholder returns, Baidu’s board has approved the company’s first-ever dividend policy for common shares, which may include regular and/or special dividends. Baidu expects to announce its first dividend payment in 2026. Future dividend declarations, timing, and amounts will be determined at the discretion of the board based on the company’s financial performance, funding needs, current market conditions, and other relevant considerations.

Baidu stated that future dividend distributions will be supported by sustainable sources of funds, primarily from operating profits, with possible additional funds from the sale of non-core assets and other investment returns. The board intends to establish a clear and balanced policy framework that aligns shareholder returns with the company’s ongoing strategic growth.

Zhang Yi, CEO of Guangzhou iiMedia Data Intelligence Consulting Co., Ltd., told Securities Daily that over the past decade, Baidu has continuously reinvested profits into cutting-edge fields such as search, mobile ecosystems, and AI, positioning itself as a typical growth-stage company in capital accumulation. Now that Baidu has initiated dividend payments, it indicates that its core businesses have achieved stable and predictable cash flow, especially as AI cloud and large model commercialization show initial results. This move sends a positive signal to the market of “sustainable profitability and financial health,” boosting investor confidence.

“Meanwhile, Baidu’s genuine cash returns to shareholders help improve valuation anchors and stabilize stock prices. More importantly, the combination of dividends and the $5 billion buyback reflects Baidu’s strategic shift from ‘high-growth narrative’ to ‘high-quality returns,’ demonstrating its responsibility as a mature tech company and its ability to deliver long-term value,” Zhang Yi further stated.