SenseTime Reports First-Ever Net Profit of 607M RMB for H1 2026

Chinese AI giant SenseTime reported a net profit attributable to the parent company of 607 million RMB for the first half of fiscal year 2026, marking its first-ever profit under IFRS since its IPO. The company's total revenue grew 23.4% year-on-year to 2.911 billion RMB, driven largely by its generative AI business. This milestone demonstrates that major AI developers can transition from heavy R&D spending to commercial profitability, signaling a maturing market for generative AI services. SenseTime's shift to generative AI, which now accounts for nearly 80% of its revenue, serves as a benchmark for the commercial viability of large language models. Generative AI revenue reached 2.327 billion RMB (79.9% of total), while recurring revenue grew 124.4% to 1.145 billion RMB. Despite the net profit, SenseTime still recorded a negative operating cash flow of -764 million RMB and an adjusted net loss of 386 million RMB.