Kingsoft Cloud (KC) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of RMB 3.072 billion in Q2 2026, up 31% year-over-year, driven by strong AI cloud growth and improved profitability.

• AI cloud gross billings surged 82% year-over-year, now representing 56% of public cloud revenue.

• Adjusted gross margin rose to 15.4%, and operating profit turned positive for the first time, with a 4% adjusted operating margin.

• Customer base diversified across internet, AI labs, fintech, gaming, and public sector, supporting resilience and pricing power.

• Net loss narrowed significantly to RMB 93 million, a 79.6% improvement year-over-year.

Financial highlights

• Total revenue reached RMB 3,072 million, up 31% year-over-year and 40% quarter-over-quarter.

• Public cloud revenue was RMB 2,358 million, up 45% year-over-year; enterprise cloud revenue was RMB 740 million, down 1% year-over-year.

• Adjusted gross profit was RMB 472 million, up 35% year-over-year; adjusted gross margin improved to 15.4%.

• Adjusted operating profit was RMB 124 million, reversing a loss of RMB 166 million a year ago.

• Non-GAAP EBITDA profit was RMB 1,100 million, up 171%, with a margin of 35.8%.

Outlook and guidance

• Full-year CapEx guidance maintained at RMB 15 billion, with over 75% already capitalized in the first half.

• Continued investment in AI infrastructure and product expansion to capture AI demand and improve operating efficiency.

• Expecting strong delivery pipeline in enterprise cloud for the second half, with business model shift to operating-based services.