Baidu Inc. (NASDAQ:BIDU), often described as China’s counterpart to Alphabet Inc.’s (NASDAQ:GOOGL) Google, announced a series of shareholder-friendly measures on Wednesday, including the launch of a new $5 billion share repurchase program and the introduction of a dividend policy.
The Board has authorized a new share repurchase program for up to $5 billion of the company’s shares, effective through December 31, 2028.
In addition, the Board has approved, for the first time, the adoption of a dividend policy for the company’s ordinary shares.
The Board expects to declare the first dividend payment in 2026.
Heavy AI Investment Weighs On Cash Flow
Despite holding $41.64 billion in cash and equivalents as of September 30, 2025, Baidu reported a concerning $302 million free cash flow outflow, primarily driven by its heavy investments in AI.
The company also downsized its workforce, with cuts reaching up to 40% in some departments.
Baidu remains focused on AI adoption, with its Ernie AI assistant surpassing 200 million monthly active users, and is moving forward with plans for a $2 billion Hong Kong IPO for its Kunlunxin AI chip unit.
The stock gained over 55% in the last 12 months.
BIDU Price Action: Baidu shares were up 5.28% at $145.22 during premarket trading on Thursday, according to Benzinga Pro data.
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