Autohome Inc. (NYSE:ATHM) shares gained 3.6% after the Chinese automotive services platform reported second-quarter results that exceeded analyst expectations, with adjusted earnings and revenue both coming in ahead of consensus forecasts despite a sharp year-on-year decline in sales.
Adjusted earnings reached RMB2.46 ($0.36) per ADS, beating the analyst estimate of RMB2.04 by RMB0.42. Revenue came in at RMB1.20 billion ($176.6 million), slightly above expectations of RMB1.18 billion.
However, quarterly revenue was down 32% from RMB1.76 billion in the second quarter of 2025, reflecting continued pressure across parts of Autohome’s automotive ecosystem.
Dealer weakness weighs on revenue
The decline in revenue was primarily driven by lower spending from automotive dealers as sales volumes contracted, alongside a reduced contribution from Autohome’s vehicle sales operations.
Leads generation services revenue dropped 24% year on year to RMB560.4 million, while online marketplace and other revenue fell 52% to RMB357.3 million.
Media services proved more resilient, with revenue remaining broadly stable at RMB280.4 million.
Despite the substantial overall sales decline, the better-than-expected headline figures helped lift Autohome shares following the results.
Autohome pushes ahead with AI strategy
Management highlighted progress in expanding the company beyond its traditional automotive information and lead-generation operations.
“During the quarter, our innovative business continued to make steady progress, driving Autohome’s upgrade towards a comprehensive automotive service ecosystem,” said Chi Liu, Chairman and Chief Executive Officer.
Artificial intelligence is becoming an increasingly important part of that strategy, with Autohome investing in AI agents and related technologies designed to broaden its services.
“We also made major strides in AI, particularly in cutting-edge AI agent technologies. In early July, we unveiled our proprietary intelligent agent product, Cheese Car Butler, and opened it for public beta.”
The launch gives Autohome another avenue through which to integrate AI into its automotive platform as the company seeks new sources of engagement and growth.
Adjusted net income falls 42%
Profitability remained under pressure despite the earnings beat.
Adjusted net income attributable to Autohome declined 42% year on year to RMB277.3 million ($40.9 million), compared with RMB475.7 million in the corresponding period of 2025.
The decline reflects the impact of weaker revenue across the dealer and online marketplace businesses, even as the company continues to invest in new products and its broader automotive services strategy.
Autohome launches new $400 million buyback
Capital returns also remain a significant part of Autohome’s strategy.
The company completed the $200 million share repurchase programme announced in March 2026, buying back 10,627,269 ADSs by July 30.
On July 28, the board authorised a new share repurchase programme worth up to $400 million. By August 14, Autohome had already bought back 1,895,093 ADSs for approximately $43.6 million under the new authorisation.
The combination of an earnings beat, slightly better-than-expected revenue, continued AI investment and an expanded buyback programme helped support the positive share-price reaction. However, the steep decline in annual revenue and adjusted net income shows that Autohome still faces significant challenges as it works to offset weakness in its traditional dealer-focused businesses.
Autohome stock price
