Kingsoft Cloud (KC) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 was RMB 2.7 billion, up 37.2% year-over-year, driven by strong AI business growth and deeper penetration into enterprise cloud customers.

• AI business became the majority revenue driver, contributing over 50% of public cloud revenue and growing 91% year-over-year to RMB 998 million.

• Adjusted gross profit reached RMB 351.4 million, up 7.2% year-over-year, despite supply chain challenges.

• Adjusted EBITDA margin improved to 28%, up 11 percentage points year-over-year.

• Continued significant investment in infrastructure, with Q1 capital expenditures and leased assets totaling RMB 3 billion.

Financial highlights

• Public cloud revenue reached RMB 2.0 billion, up 47.5% year-over-year; enterprise cloud revenue was RMB 710 million, up 14.7%.

• Adjusted gross profit was RMB 351 million, up 7% year-over-year, but down 24% sequentially; adjusted gross margin dropped from 70% to 30% quarter-over-quarter.

• Adjusted EBITDA was RMB 748 million, up 134.7% year-over-year, with margin improving to 28%.

• Net loss was RMB 343.7 million, up 8.7% year-over-year; non-GAAP net loss was RMB 237.1 million.

• Cash and cash equivalents were RMB 4,903.8 million as of March 31, 2026.

Outlook and guidance

• Expect continued investment in infrastructure to support explosive AI demand and business expansion.

• Gross margin anticipated to recover in coming quarters as upfront costs normalize.

• 2026 CapEx projected at RMB 15–20 billion, with supply chain capacity as the primary limiting factor.