Cheetah Mobile Roars into 2026 with Strong Robotics and AI Growth
Cheetah Mobile, a leading provider of internet and mobile-based applications, has kicked off its fiscal year 2026 on a high note. The company's first quarter earnings call, held earlier this week, provided valuable insights into the progress it has made in transitioning from a traditional internet company to one focused on AI-enabled applications.
In his opening remarks, Cheetah Mobile's Chairman and CEO, Mr. Fu Sheng, highlighted the importance of 2026 as a transition year for the company. "We are gradually moving from capability building into early-stage commercial validation," he noted. This shift in focus has led to significant growth in revenue from its robotics and other business segment, which increased by 176% year-over-year to RMB 51 million. This represents approximately 20% of total revenue.
The company's Chairman and CEO further emphasized that the demand for these services remains strong, with expectations of continued growth in the second quarter. Cheetah Mobile is witnessing encouraging early market feedback and initial commercial traction from its smart personal mobility product, which extends its robotics and AI capabilities into personal mobility and healthcare-related scenarios.
One of the standout features of the company's Q1 performance was the impressive adoption rate of its agent business, with daily average token usage exceeding 400 billion in May. Revenue from this segment increased by 68% year-over-year, accounting for approximately 18% of total revenue. The company is optimistic about the growth potential of this business, citing partnerships with Google Cloud and AWS as a key factor.
While the company's advertising agency business experienced a decline in revenue due to external factors, management remained upbeat, emphasizing that it provides a stronger base for future growth. The internet services business continued to generate important profit and cash flow support for the company, generating approximately RMB 15 million in adjusted operating profit.
The two fast-growing businesses – robotics and others, as well as cloud and AI infrastructure – already account for 38% of Cheetah Mobile's first quarter revenue. The company expects their revenue growth to continue, with a projection that they will exceed more than 50% of total revenue in the second half of this year.
In summary, Cheetah Mobile has made significant strides in its transition to an AI-enabled applications company, demonstrating strong growth and promising prospects for future revenue expansion. The company's focus on commercial validation, coupled with growing demand for its services, positions it well for success in 2026 and beyond."
