Cheetah Mobile Inc.

Second-quarter total revenue was RMB 766.1 million, up 9.9% year over year and 2.7% quarter over quarter. Reported operating loss was RMB 73.6 million, versus RMB 11.1 million in the same period last year; non-GAAP operating loss was RMB 25.6 million versus RMB 2.1 million a year ago. Internet services revenue was RMB 130.5 million, down 17.3% year over year, while adjusted operating profit rose 14.2% year over year to RMB 25.4 million and margin expanded to 19.4%. Robotics and others revenue was RMB 54.5 million, up 72.5% year over year, with an adjusted operating loss of RMB 34.0 million. Global Enterprise Services revenue was RMB 81.1 million, down 23.3% year over year, driven by a sharp decline in advertising agency services; services of cloud and AI infrastructure revenue rose to RMB 59.1 million, up 83.1% year over year and 26.2% quarter over quarter. Cash and cash equivalents were RMB 1,271 million, or USD 187.3 million, as of June 30, 2026. For guidance, management expects gross billings from services of cloud and AI infrastructure to exceed RMB 2 billion in 2026, with related revenue expected to exceed RMB 200 million, implying over 100% gross-billings growth and over 59% revenue growth.

Fu Sheng framed the quarter as evidence of a business mix shift toward AI infrastructure and robotics. He said the company is not trying to build foundation models, but instead wants to help enterprises use leading AI models, improve productivity, and expand globally with practical services. He also highlighted smart mobility as an early robotics growth engine and emphasized a capital-efficient, step-by-step approach rather than aggressive spending.

Thomas Ren focused on the quarter’s mix shift and profitability by segment. He pointed to RMB 766.1 million of revenue, the RMB 73.6 million operating loss, and RMB 1,271 million in cash and cash equivalents, saying the balance sheet gives flexibility to invest prudently in AI and robotics. He also noted Internet services remained solidly profitable, Global Enterprise Services stayed profitable on an adjusted basis, and robotics investment widened losses as commercialization continues.

Analysts pressed management on the sustainability of AI infrastructure growth, competitive advantages, robotics break-even timing, and whether the company might pursue strategic investment, spin-offs, or other capital-market actions. Management said AI infrastructure demand remains strong, citing customer-oriented services, training, deployment support, and deep relationships with vendors such as Amazon and Google as differentiators. On robotics, management said some products like robotic arms are already profitable, smart mobility is early-stage, and the company is not forcing a near-term quarterly profit target. On valuation, management said it is open to strategic investments and other capital options if conditions are appropriate, but no specific transaction was announced.