Cheetah Mobile Q2 Earnings Call Highlights

Revenue grew, but losses widened: Second-quarter revenue rose 9.9% year over year to RMB266.1 million, while the non-GAAP operating loss expanded to RMB25.6 million due to weaker advertising agency revenue and increased robotics investment.

Cloud and AI infrastructure was the key growth driver: Revenue surged 83.1% year over year to RMB59.1 million, with management targeting more than RMB2 billion in 2026 gross billings and over RMB200 million in related revenue.

Robotics commercialization advanced: Smart mobility products began generating revenue during the quarter, while the robotics segment's adjusted loss widened sequentially as Cheetah Mobile invested in product development and market expansion.

Cheetah Mobile (NYSE:CMCM) said its second-quarter 2026 results reflected a continued shift toward cloud and AI infrastructure services and robotics, even as changes affecting its advertising agency business weighed on profitability.

Total revenue was RMB266.1 million, up 2.7% from the prior quarter and 9.9% from a year earlier, according to Director and CFO Thomas Jintao Ren. Excluding advertising agency services, revenue totaled RMB244.1 million, increasing about 10% year-over-year and 5% sequentially.

The company reported an operating loss of RMB73.6 million, compared with losses of RMB28.3 million in the first quarter and RMB11.1 million a year earlier. Non-GAAP operating loss was RMB25.6 million, widening from RMB22.5 million in the prior quarter and RMB2.1 million in the second quarter of 2025.

Ren said the year-over-year increase in losses primarily reflected lower advertising agency services revenue within global enterprise services, while continuing investment in robotics commercialization also contributed to a wider sequential loss.

Services of cloud and AI infrastructure generated RMB59.1 million in second-quarter revenue, up 83.1% year-over-year and 26.2% from the first quarter. The business accounted for 22.2% of total revenue and 72.8% of global enterprise services revenue.

Chairman and CEO Fu Sheng said gross billings for the business exceeded RMB500 million during the quarter, compared with about RMB200 million a year earlier and approximately RMB300 million in the first quarter. He said Cheetah Mobile expects cloud and AI infrastructure gross billings to exceed RMB2 billion in 2026, representing growth of more than 100% year-over-year, while related revenue is expected to surpass RMB200 million.