Data Center Communications revenue increased 79% year over year to $554.7 million in Q2, with Data Center accounting for more than 75% of Communications revenue and growing more than 90%. Management said Data Center growth was driven by both its optical and power portfolios. Industrial revenue increased 56% to $1.8 billion, Automotive revenue increased 2% to $871.6 million, and Consumer revenue increased 11% to $397.4M.
AI Business Public Cloud Services revenue increased 47.5% year over year to RMB1.9963B, with AI Business gross billing increasing 90% and accounting for more than half of Public Cloud Services revenue for the first time. Enterprise Cloud Services revenue increased 14.7% to RMB707.4M, but declined 17.6% sequentially, mainly due to the Chinese New Year impact and differentiated delivery schedules for various projects.
Commercial Communications Communications Solutions Group revenue increased 35% year over year to $1.23B. Within Communications Solutions Group, Commercial Communications revenue increased 40% to $858M, and Aerospace, Defense and Government revenue increased 24%. Electronic Industrial Solutions Group revenue increased 24% to $486M.
Sensor & Effector Sensor & Effector revenue increased 43.8% to $114.2M, representing 48.4% of total revenue. Management highlighted significant revenue growth across Space, Radar and other sensors and effectors. C4I revenue declined 7.2% to $89.8M.
AI Cloud Infra Baidu General Business revenue increased 2% year over year to RMB26.0B. Within Baidu General Business, AI Cloud Infra revenue increased 79% to RMB8.8B, and GPU cloud revenue within AI Cloud Infra increased 184%. Management attributed AI Cloud Infra growth primarily to strong demand from enterprise customers. iQIYI revenue declined 14% to RMB6.2B.
ADAS and Robotics LiDAR Business revenue increased 29.6% year over year to RMB680.6M, with total LiDAR shipments increasing 140.9% to 471,723 units, including 353,441 ADAS shipments and 118,282 Robotics shipments. Management attributed the revenue growth to strong, broad based demand across both ADAS and Robotics.
Hydra Host GPUaaS Technology Solutions generated $562K in Q1 versus $0 in Q1 FY2025. The $176M Hydra Host GPUaaS agreement is expected to contribute approximately $26M of revenue in H2 2026, supporting the company’s expectation for 2026 revenue to exceed $50M, with a significant portion anticipated in the second half. Services and Consulting revenue declined 45%, and Services and Consulting — Related Parties revenue declined 60%.
Infrastructure Deployment Forgent’s vertical integration targets electrical equipment lead times, a constraint in power infrastructure deployment. According to a BCE assessment, FPS lead times were approximately 65% shorter for substation transformers, 34% for eHouses, 43% for medium voltage switchgear and 33% for padmount transformers versus industry averages. This accelerates data center deployment.
High Performance Computing Hosting High Performance Computing Hosting revenue increased 54% year over year to $4.64M from $3.01M. FY2026 HPC revenue reached a record $19.5M, up 94% from $10.0M in FY2025, driven by deployment of the NVIDIA H200 GPU cluster and strong demand on the GPU marketplace. Digital Currency Mining revenue increased 42.6% year over year, but declined 23.9% sequentially from Q3.
Installation & Maintenance Engineering & Consulting revenue increased 5.5% year over year to $206.9M and Installation & Maintenance revenue increased 162.0% to $1.06B. Legence’s adjusted gross margin declined to 18.5% from 21.8% a year earlier, with the company citing revenue mix and a slight decline in Engineering & Consulting margins.
