The Beijing-based search company is scheduled to report results on Monday. Analysts polled by FactSet forecast net profit of 1.65 billion yuan ($247.3 million), compared with a net loss of 11.23 billion yuan in the year-earlier quarter. That earlier loss was mainly due to an impairment charge for long-lived assets related to Baidu’s core business.

Adjusted net profit is expected to fall to 2.13 billion yuan from 3.77 billion yuan a year earlier, according to FactSet. Baidu’s Hong Kong-listed shares dropped 22% in the third quarter amid weak sentiment toward technology stocks.

Analysts expect the company’s AI and cloud business to have maintained solid momentum. Citi forecasts 99% year-over-year growth in AI cloud infrastructure revenue. Deutsche Bank also expects solid cloud revenue, supported by demand for AI computing from embodied AI, autonomous driving and internet sectors.

Deutsche Bank cautioned that advertising could miss estimates because monetization has been delayed. A shift in revenue mix toward lower-margin cloud business could also weigh on margins, the bank said. It cut its adjusted net profit estimates by 15% for fiscal 2026 and 14% for fiscal 2027.