Baidu plans to repurchase $5 billion worth of shares and will pay dividends for the first time in 2026

21st Century Business Herald Reporter Kong Haili

On February 5th, Baidu Group (09888.HK) announced on the Hong Kong Stock Exchange that the board of directors has authorized a new share repurchase plan, allowing the company to buy back shares worth up to $5 billion. The plan is valid until December 31, 2028, and the board will regularly review the repurchase plan and make appropriate adjustments to its terms and scale.

Additionally, Baidu has for the first time adopted a dividend policy, with the first dividend expected to be announced in 2026. Future dividend distributions will be supported by sustainable funding sources, mainly derived from operating profits and possibly supplemented by proceeds from the sale of non-core assets and other investment returns.

The declaration, timing, and amount of future dividends will be determined by the board based on the company’s financial performance, funding needs, current market conditions, and other factors.

Industry analysts point out that the combination of a large-scale buyback and the initiation of dividends marks a new phase for Baidu, emphasizing both profit realization and shareholder value return.

Beyond capital actions, Baidu has also joined the Year of the Horse Spring Festival红包战 (red envelope battle), investing 500 million yuan in cash and physical benefits. The红包玩法 (red envelope gameplay) is deeply integrated with its Wenxin large model and Wenxin Assistant, aiming to create an AI-native interactive experience. Nearly 200 horse-themed templates have been launched, allowing users to upload images to generate personalized New Year short videos, with random cash红包 (red envelopes) dropping during viewing; other activities include collecting cards for cash, Wenxin Assistant AI command红包, and more.

At the beginning of 2026, Baidu’s硬科技 (hard technology) sector also achieved a milestone. On January 2nd, Baidu announced that Kunlun Chip had submitted an application form (A1 form) to the Hong Kong Stock Exchange, initiating the process of a spin-off and independent listing. After the spin-off, Kunlun Chip will remain a non-wholly owned subsidiary of Baidu.

As Baidu’s self-developed AI chip main body, Kunlun Chip has achieved large-scale deployment of cloud AI inference and training chips, with clients spanning internet, telecommunications, finance, aviation, government, and other sectors. External commercial revenue is growing rapidly.

Multiple institutional research reports believe that the spin-off of Kunlun Chip will unlock independent valuation for Baidu’s硬科技 sector, becoming another growth curve following its generative AI business.

As of press time, the market responded positively to Baidu’s share repurchase and dividend initiatives, with Baidu Group closing up 2.7% today.