Kingsoft Cloud Stock Surges 9% as AI Cloud Billings Jump 82% in Second-Quarter Earnings Beat

Why Is Kingsoft Cloud Stock Gaining Wednesday? - Kingsoft Cloud Holdings (NASDAQ:KC)

Kingsoft Cloud Holdings Ltd. (NASDAQ:KC) stock jumped Wednesday after the company reported second-quarter 2026 results that beat analyst estimates as demand for AI-related cloud services accelerated. AI Cloud Demand Drives Revenue Growth Kingsoft Cloud reported revenue of 3.07 billion Chinese yuan ($452.75 million), up 30.8% year over year. Revenue beat the analyst consensus estimate of $447.80 million. Revenue also rose 13.6% from the previous quarter. The company attributed the sequential growth mainly to stronger demand from AI-related customers and continued upgrades to its AI infrastructure and products. Public Cloud Revenue Jumps Public cloud services revenue increased 45.1% year over year to 2.36 billion Chinese yuan ($347.47 million). Revenue rose 18.1% from the previous quarter as AI demand remained strong. Latest Private Market Opportunities Join 400,000+ Investors Enterprise cloud services revenue fell 1.3% year over year to 714.35 million Chinese yuan ($105.28 million). However, it increased 1% sequentially. Profitability Improves Adjusted gross profit increased to 471.7 million Chinese yuan ($69.5 million) from 350.6 million Chinese yuan a year earlier. Adjusted gross margin improved to 15.4% from 14.9% a year earlier and 13% in the previous quarter. Kingsoft Cloud cited stronger AI demand and operational improvements. The company posted an adjusted operating profit of 124 million Chinese yuan ($18.3 million), compared with an adjusted operating loss of 166.4 million Chinese yuan a year earlier. Kingsoft Cloud reported an adjusted loss of 3 cents per American depositary share, beating the analyst consensus estimate for a loss of 10 cents per ADS. The company ended the quarter with 4.67 billion Chinese yuan ($688.9 million) in cash and cash equivalents as of June 30. AI Demand Lifts Growth And Profitability Kingsoft Cloud executives highlighted accelerating AI demand and improving profitability while signaling continued investment to support long-term growth. CEO Tao Zou said gross billings from the company's AI cloud business jumped 82% year over year and accounted for 56% of public cloud revenue. Growth came from higher contributions from AI infrastructure services and Model-as-a-Service offerings. Zou also highlighted Kingsoft Cloud's first positive GAAP operating margin. Its adjusted operating margin reached 4%, helped by stronger gross margins and greater operating efficiency. CFO Yi Li attributed the profitability gains to AI demand and operational improvements. Li said Kingsoft Cloud remains committed to investing for long-term growth. Second-quarter capital expenditures, including assets financed through leasing arrangements, reached 3.3 billion Chinese yuan, up from the first quarter. KC Price Action Kingsoft Cloud shares were up 8.12% at $11.72 at the time of publication Wednesday, according to Benzinga Pro. Photo via Shutterstock Media AI Killing Software? Analyst Says 'I Don't See a Software Apocalypse' Hyperscale AI spending is turning into real revenue. Dan Ives weighs in on MSFT, NVDA, and why software fears are overdone. 3 min read Read this article Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Kingsoft Cloud stock surges 9% on second quarter earnings beat By Investing.com

BEIJING -On Wednesday, Kingsoft Cloud Holdings Limited (NASDAQ:KC and HKEX: 3896) reported second quarter results that exceeded analyst expectations, with revenue reaching RMB3.07 billion compared to the consensus estimate of RMB3.03 billion. Shares of the company surged 8.97% in pre-market trading following the earnings release. The company posted an adjusted loss per share of RMB0.02, significantly better than the analyst estimate of a loss of RMB0.42. Revenue increased 30.8% YoY from RMB2.35 billion in the same quarter of 2025. The company achieved positive operating profit of RMB23.0 million for the first time on a GAAP basis, compared to an operating loss of RMB327.0 million in the same quarter last year. Adjusted operating profit reached RMB124.0 million, representing a 4.0% margin. The improvement was driven by AI cloud business growth, with gross billings from AI cloud services increasing 82% YoY and representing 56% of public cloud revenue. Public cloud services revenue grew 45.1% YoY to RMB2.36 billion, while enterprise cloud services revenue decreased 1.3% YoY to RMB714.3 million. Gross margin improved to 15.2% from 14.4% in the prior year period, with adjusted gross margin reaching 15.4%. "We are excited to deliver a quarter of both strong growth and profitability," said Tao Zou, Chief Executive Officer. "Gross billings from our AI cloud business grew 82% year-over-year, representing 56% of public cloud revenue, driven by incremental contributions from our AI cloud infrastructure services as well as Model-as-a-Service offerings." Net loss narrowed to RMB93.0 million from RMB456.9 million in the second quarter of 2025. Adjusted net loss was RMB59.8 million compared to RMB300.5 million in the prior year period. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.