Cheetah Mobile Inc. (NYSE:CMCM) reported first-quarter revenue of $37.5 million on Wednesday, with overall sales broadly unchanged from a year earlier as rapid expansion in its robotics and AI-related businesses helped offset declines across its traditional internet and enterprise services operations.
The company’s shares fell 1.18% in after-hours trading following the earnings release.
Robotics Division Delivers Strong Growth
Cheetah Mobile’s robotics and other businesses continued to gain momentum during the quarter, with revenue jumping 175.9% year-on-year to RMB51.2 million.
The segment represented 19.8% of total company revenue, highlighting its growing importance within the group’s evolving business model.
Meanwhile, revenue from cloud and AI infrastructure services rose 68.3% from the prior-year period to RMB46.8 million, reflecting increasing demand for the company’s technology offerings.
Legacy Businesses Remain Under Pressure
Despite strong performance in emerging growth areas, the company continued to face challenges across its more established operations.
Internet services revenue declined 15.2% year-on-year to RMB135.0 million, largely due to a 46.3% drop in online advertising revenue.
Global enterprise services revenue also moved lower, falling 10.5% to RMB72.8 million. The decline was primarily attributed to a 51.5% reduction in advertising agency services revenue.
The mixed performance resulted in overall revenue remaining largely flat compared with the same period last year.
Losses Narrow as Efficiency Improves
Cheetah Mobile reported an adjusted net loss of $1.7 million for the quarter, compared with an adjusted net loss of RMB21.1 million in the corresponding period a year earlier.
On a GAAP basis, the company posted a net loss attributable to shareholders of $2.5 million, compared with a net loss of RMB33.4 million in the first quarter of the previous year.
Management highlighted ongoing improvements in operational efficiency as part of its long-term strategy.
“During the first quarter of 2026, we continued executing our AI and robotics strategy with a disciplined approach,” said Fu Sheng, Chief Executive Officer. “Our robotics and others segment delivered strong year-over-year growth while adjusted operating loss further narrowed, reflecting improving commercial traction and operating efficiency.”
The adjusted operating loss within the robotics division narrowed by 57.1% year-on-year to RMB26.9 million.
Strong Cash Position Supports Growth Initiatives
The company ended the quarter with $185.6 million in cash and cash equivalents, providing substantial liquidity to support continued investment in artificial intelligence, robotics and infrastructure initiatives.
Management remains focused on scaling higher-growth businesses while improving profitability across the broader organisation.
More about Cheetah Mobile
Cheetah Mobile Inc. is a technology company focused on artificial intelligence, robotics, cloud services and digital applications. Originally known for its mobile internet products, the company has increasingly shifted its focus toward AI-powered solutions and service robotics, targeting commercial, enterprise and consumer markets in China and internationally.