Cheetah Mobile (CMCM) Q1 2026 earnings summary

Executive summary

• 2026 marks a transition from traditional internet to AI-enabled applications and robotics, with a focus on early-stage commercial validation.

• Total Q1 2026 revenue was RMB 259 million (US$37.5 million), remaining flat year-over-year.

• Robotics and others segment revenue surged 175.9% year-over-year to RMB 51.2 million, now 19.8% of total revenue, with adjusted operating loss narrowing by 57.1%.

• Cloud and AI infrastructure services revenue increased 68.3% year-over-year, now 18% of total revenue.

• Robotics, cloud, and AI infrastructure businesses together contributed 38% of Q1 revenue, expected to exceed 50% in the second half of 2026.

Financial highlights

• Adjusted operating loss was RMB 28.3 million (US$4.1 million), up from RMB 26.5 million a year ago, mainly due to lower profitability in internet and global enterprise services and continued AI/robotics investment.

• Non-GAAP net loss attributable to shareholders was RMB 11.7 million (US$1.7 million), improved from RMB 21.1 million last year.

• Net loss attributable to shareholders narrowed to RMB 17.5 million (US$2.5 million) from RMB 33.4 million a year ago.

• Gross profit for Q1 2026 was RMB 166.6 million (US$24.1 million), with gross margin declining due to higher costs.

• Internet service business generated RMB 15.2 million in adjusted operating profit; global enterprise services generated RMB 13.8 million.

Outlook and guidance

• Robotics, cloud, and AI infrastructure revenue expected to exceed 50% of total revenue in the second half of 2026.

• Robotics and others revenue expected to continue strong growth both year-over-year and quarter-over-quarter.

• Management remains focused on disciplined investment in AI and robotics, aiming for long-term growth from practical AI applications and workflow integration.

• Financial priorities include maintaining operating discipline, improving revenue quality and efficiency, and supporting long-term AI/robotics investments while preserving flexibility.