Baidu unveils first-ever dividend and US$5 billion buy-back amid AI race

Search-engine leader Baidu introduced its first-ever dividend policy and unveiled a three-year share buy-back programme of US$5 billion on Thursday, briefly sending its shares sharply higher, as the Chinese artificial intelligence heavyweight sought to shore up investor confidence amid intensifying competition.

The company said in a stock exchange filing that its board had approved a share repurchase programme running through the end of 2028.

Baidu also declared its first-ever dividend payment this year, which may include regular or special distributions.

Its shares rose 1 per cent to HK$138.50 as of noon trading break, after earlier jumping as much as 2.4 per cent following the announcement.

The buy-back programme and dividend plan were in line with expectations, said analysts led by Alicia Yap at Citigroup in a note, adding that a more consistent and transparent approach to shareholder returns was likely aimed at improving investor confidence and would be “viewed positively by the market”.

They expect Baidu to formally declare the dividend either when it reports its fourth-quarter 2025 earnings or alongside its first-quarter 2026 results in May.

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