CMCM reports 38% of Q1 revenue from AI and robotics, up sharply, while advertising weakness drags on profitability.
Cheetah Mobile reported Q1 2026 revenue of RMB 259 million, with AI and robotics segments driving growth as advertising revenue declined. Robotics and cloud AI revenue surged 175.9% and 68.3% year over year, respectively, accounting for 38% of total revenue.
The company expects AI and robotics to exceed 50% of revenue in the second half of 2026, marking a strategic shift. However, an operating loss of RMB 28.3 million reflected pressure from weaker advertising performance due to external platform policy changes.
Management highlighted a cash position of $186 million, providing flexibility to continue investing in AI and robotics. CEO Fu Sheng called 2026 an “important transition year” for the company.