U.S.-listed shares of the company rose 3.2 per cent in premarket trading.
Even as Baidu's core advertising sales continue to be soft, customers are signing up for its cloud services - a key area of growth globally - as demand for internet applications increase.
Revenue at Baidu's AI Cloud unit grew 31 per cent year-on-year in the quarter.
Baidu has also been doubling down on self-driving technologies, in which it has heavily invested over the past five years.
It started to charge fees for its robotaxi service Apollo Go on open roads from last year. Apollo Go operated 287,000 rides over the quarter and has so far accumulated a total of more than one million rides.
The Beijing-based company posted a net profit of 3.64 billion yuan, or 1.49 yuan per American Depository Share (ADS).
China's tech companies reported weak results for the April-June period as they struggle with the economic slowdown and Beijing's regulatory crackdown.
Earlier this month, Alibaba Group reported its first-ever flat quarterly revenue and Tencent Holdings posted its first-ever quarterly revenue decline.
(1 Chinese yuan = $0.1449)
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