Youdao (DAO) Q2 FY26 earnings call

Youdao delivered robust Q2 FY26 results, achieving record operating profit for the eighth consecutive quarter, driven by strong growth in learning services and significant AI integration across its product lines. While online marketing and smart devices revenues saw declines due to strategic prioritization of profitability and market demand shifts, the company remains focused on its AI-native strategy to enhance user experience and operational efficiency, expecting stronger gross margin performance in H2 2026.