Beijing – September 16, 2026 -- Cheetah Mobile Inc. (NYSE: CMCM) reported total revenue of RMB266.1 million (US$39.2 million) for the quarter ended June 30, 2026, down 9.9% year over year but up 2.7% quarter over quarter, as growth in cloud, AI infrastructure and robotics offset a sharp decline in advertising agency services.
Cloud and AI infrastructure revenue surges 83.1% year over year to RMB59.1 million
Revenue from services of cloud and AI infrastructure, part of the Global Enterprise Services segment, rose 83.1% year over year and 26.2% quarter over quarter to RMB59.1 million, representing 72.8% of segment revenue and 22.2% of total revenue, up from roughly 10.9% of total revenue a year earlier. The company attributed the growth to enterprises expanding overseas that are seeking cloud resources, computing power and AI model services. CEO Fu Sheng said gross billings from these services exceeded RMB500 million in the quarter, compared with about RMB200 million a year earlier and RMB300 million in the prior quarter.
Robotics revenue climbs 72.5% year over year on UFACTORY contribution
Robotics and others revenue increased 72.5% year over year and 6.4% quarter over quarter to RMB54.5 million (US$8.0 million), accounting for 20.5% of total revenue. The gain reflected higher sales volumes of robotic products and the contribution of UFACTORY, a lightweight robotic arm maker acquired on July 29, 2025. Adjusted operating loss from the robotics segment narrowed 35.5% year over year to RMB34.0 million but widened from RMB26.9 million in the first quarter as the company continued investing in commercialization.
Advertising agency revenue drops 70% on rebate policy change at major platform
Advertising agency services revenue fell 70.0% year over year and 15.0% quarter over quarter to RMB22.0 million, with the segment's share of total revenue shrinking to 8.3% from 24.9% a year earlier. The decline, driven by changes in rebate policies at a major global advertising platform, was a key factor behind the year-over-year widening of the company's operating loss. Excluding advertising agency services, revenue rose approximately 10.1% year over year and 4.7% quarter over quarter to RMB244.1 million.
Operating loss widens to RMB33.6 million as non-GAAP loss holds near RMB25.6 million
Operating loss totaled RMB33.6 million (US$5.0 million), compared with RMB11.1 million a year earlier and RMB28.3 million in the first quarter of 2026. Non-GAAP operating loss was RMB25.6 million (US$3.8 million), against RMB2.1 million a year earlier and RMB22.5 million in the prior quarter. CFO Thomas Ren noted that higher adjusted operating profit in Internet Services, which rose 14.2% year over year and 67.2% sequentially with margin expanding to 19.4%, was offset by lower profit in Global Enterprise Services and a wider loss in Robotics and others.
Internet value-added services revenue rises 6.7% as advertising revenue plunges
Internet value-added services revenue increased 6.7% year over year and 2.9% quarter over quarter to RMB101.2 million, representing 77.6% of the Internet Services segment and 38.0% of total revenue, on a larger user base and expanded distribution channels. Online advertising revenue within the same segment fell 53.5% year over year and 20.2% quarter over quarter to RMB29.3 million.
Company holds RMB1,271.0 million in cash as of June 30
Cheetah Mobile reported RMB1,271.0 million (US$187.3 million) in cash and cash equivalents as of June 30, 2026. Ren said the balance provides flexibility to continue investing in the company's AI and robotics businesses.