Kingsoft Cloud Q2 2026 Earnings Beat and Stock Reaction
Kingsoft Cloud Holdings Limited (NASDAQ:KC, HKEX:3896) announced second‑quarter 2026 results that surpassed analyst expectations, prompting an 8.97% rise in pre‑market trading and a roughly 9% increase in the stock price.
The company generated revenue of RMB 3.07 billion, beating the consensus estimate of RMB 3.03 billion and representing a 30.8% year‑over‑year increase from RMB 2.35 billion in Q2 2025.
Adjusted loss per share was RMB 0.02, markedly better than the analyst forecast of a RMB 0.42 loss per share. Net loss narrowed to RMB 93.0 million, down from RMB 456.9 million a year earlier, while adjusted net loss improved to RMB 59.8 million from RMB 300.5 million.
On a GAAP basis, the firm posted a positive operating profit of RMB 23.0 million, reversing a RMB 327.0 million loss in the comparable quarter of 2025. Adjusted operating profit reached RMB 124.0 million, delivering an operating margin of 4.0%.
Revenue composition shifted, with public cloud services revenue climbing 45.1% YoY to RMB 2.36 billion, while enterprise cloud services revenue slipped 1.3% YoY to RMB 714.3 million. The overall gross margin improved to 15.2% from 14.4% in the prior year period, and the adjusted gross margin was 15.4%.
Growth was driven primarily by the AI cloud segment: gross billings from AI cloud services rose 82% YoY, now accounting for 56% of public cloud revenue. The CEO, Tao Zou, highlighted that the AI cloud infrastructure services and Model‑as‑Service offerings were key contributors to this performance.