Aug 27, 2026 earnings call — AI strategy and quarterly financial results
Total revenues increased 8% year-over-year to RMB 7.9 billion.
Revenue $1.2B (est $1.2B) · EPS $0.23 (est $0.23)
Key quotes
"In Q2, monthly interactions grew 9% year-over-year to 17.4 billion, while deeper connections like long comments jumped over 67%."
"Our CTCVR continued to improve, increasing 19% year-over-year in Q2."
Analyst Q&A 5
Why growth stayed strong despite short videos
Q (Lincoln Kong · Goldman Sachs): Analyst asked why Bilibili kept growing while short-form rose and how user preferences will change in the AI era.
A: Management said Bilibili focuses on high-quality mid-to-long-form content rather than picking a length. They said creators and a discerning community help high-quality content emerge. AI will raise content supply, but only high-quality content will get viewership; metrics: monthly user interactions over 7 billion and long comments grew 67%.
"We have been focusing on providing a high-quality content that is interesting in depth and really connects with user emotionally." — Juliet Yang
Advertising outlook and AI impact
Q (Yang Liu · Morgan Stanley): Analyst asked about ad growth in the second half, how AI changes ad demand, and which verticals will support growth with a higher base.
A: Management said 2Q ad revenue was RMB 3.13 billion, up 28% year-over-year, showing strong advertiser recognition. They said AI-sector ad spend grew by over 100% year-over-year and AI improves ad efficiency and automated ad placement, driving new advertisers' double-digit growth. Top 5 ad verticals were games, consumer electronics, Internet services, e-commerce and automotive; multi-scenario ad revenue grew 50% year-over-year in H1.
"In the second quarter, despite macroeconomic pressure on consumer spending, our ad business delivered a very strong performance with revenue reaching RMB 3.13 billion, up 28% year-over-year." — Juliet Yang
Games pipeline and existing game outlook
Q (Qi Chen · JPMorgan): Analyst asked which upcoming games are most anticipated, their launch timing, and how the two-year-old Three Kingdom strategy game should be viewed going forward.
A: Management named Lumi Master, launching globally on September 17, as a light casual title targeting young casual players. They expect San Guo to launch toward the end of this year and listed other titles for next year, including a tactical RPG and RO3 (license secured, technical testing started today). They said the existing strategy game celebrated a second anniversary update and has ranked among the iOS top grossing top 5 in every season from Season 8 to Season 15.
"We are planning for a global launch in September 17 next month." — Juliet Yang
How AI helps product and how much CapEx spent
Q (Xueqing Zhang · CICC): Analyst asked how AI enhances community, engagement and business lines, and how much of the previously announced AI CapEx has been deployed and the expected spending pace.
A: Management said AI investments focus on three video areas: understanding, distribution and creation, to improve search, recommendation and ad matching and to enable new types of creator-led content. They gave an example where an animation campaign generated 270 minutes of watch time and over 180 million views. Management also said they have achieved 70% to 80% of the RMB 1 billion AI target in H1, mainly on server computing resources, and the expected R&D impact for full-year 2026 remains RMB 500 million.
"We have already achieved 70% to 80% of it in the first half of the year, primarily on the procurement of server computing power resources." — Xin Fan (CFO)
Margins, AI spending, and capital allocation
Q (Thomas Chong · Jefferies): Analyst asked about margin upside by business line, AI's effect on fixed-cost leverage and OpEx, margin outlook for H2 and 2027, and capital allocation plans.
A: Management said Q2 gross profit margin was 37.2% and adjusted net profit margin was 8.9%, with net profit up 55% year-over-year. They expect advertising to keep growing (it is 39% of revenue) and aim for a mid-to-long-term gross profit margin of 40% to 45% and operating margin of about 15% to 20%. On capital allocation, they have repurchased USD 180 million year-to-date, the Board approved a new USD 300 million program, and as of end-June repurchased 1.9 million shares for over USD 31 million under the new program.
"Our mid- to long-term target remains unchanged, a gross profit margin of 40% to 45% and an operating margin around 15% to 20%." — Xin Fan (CFO)