Cheetah Mobile (CMCM) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB 266.1 million in Q2 2026, up 2.7% quarter-over-quarter, with cloud and AI infrastructure and robotics segments driving growth.

• Cloud and AI infrastructure revenue rose 83.1% year-over-year and 26.2% quarter-over-quarter, now 22.2% of total revenue.

• Robotics and others revenue increased 72.5% year-over-year and 6.4% quarter-over-quarter, benefiting from the UFACTORY acquisition.

• Internet value-added services revenue increased 6.7% year-over-year and 2.9% quarter-over-quarter, making up 38% of total revenue.

• Advertising agency services revenue dropped 70% year-over-year, significantly impacting operating loss.

Financial highlights

• Total revenue: RMB 266.1 million (+2.7% QoQ, +9.9% YoY).

• Excluding advertising agency services, revenue was RMB 244.1 million (+10% YoY, +5% QoQ).

• Operating loss: RMB 73.6 million (vs. RMB 28.3 million Q1 2026, RMB 11.1 million Q2 2025); non-GAAP operating loss: RMB 25.6 million.

• Cash and cash equivalents: RMB 1,271 million ($187.3 million) as of June 30, 2026.

• Gross profit for Q2 2026 was RMB 168.6 million ($24.9 million); gross margin declined due to higher costs.

Outlook and guidance

• Gross billings from cloud and AI infrastructure expected to exceed RMB 2 billion in 2026, over 100% YoY growth.

• Related revenue projected to surpass RMB 200 million in 2026, over 50% YoY growth.

• Management expects sequential revenue growth to continue, supported by scaling AI and robotics businesses.

• Focus remains on sustainable growth, expanding AI and robotics, and maintaining profitability in core segments.