Kingsoft (3888) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 rose 9% year-over-year to RMB2,510.4 million, with office software and services up 25% and online games down 15%.

• Operating profit increased 9% year-over-year to RMB418.7 million; adjusted net profit attributable to owners rose 37% to RMB330.5 million.

• For H1 2026, revenue was RMB4,927.1 million (+6% YoY); profit attributable to owners: RMB1,639.3 million (+101% YoY); adjusted net profit: RMB580.6 million (–13% YoY).

• AI integration across office, gaming, and cloud businesses drove growth in office software and services, while online games faced lifecycle and competitive pressures.

• Cash resources at quarter-end were RMB27,156.6 million, supporting ongoing AI strategy and business expansion.

Financial highlights

• Q2 2026 revenue: RMB2,510.4 million (+9% YoY, +4% QoQ); office software/services: RMB1,700.0 million (+25% YoY, +5% QoQ); online games/others: RMB810.4 million (–15% YoY, +1% QoQ).

• Operating profit: RMB418.7 million (+9% YoY, +6% QoQ); gross profit margin: 79% (down 1pp YoY/QoQ).

• Adjusted net profit attributable to owners: RMB330.5 million (+37% YoY, +32% QoQ); adjusted net profit margin: 13%.

• R&D costs for Q2 2026 increased 9% year-over-year to RMB930.9 million, reflecting continued AI investment.

• Cash resources at end of Q2 2026 totaled RMB27,156.6 million.

Outlook and guidance

• AI remains the core strategic direction, with ongoing investment in AI-driven product innovation across office, games, and cloud.

• Office business to focus on AI-native product innovation and commercialization; online games to enhance core IPs and explore new categories.

• Cloud business to capture AI-driven demand, improve computing power delivery, and expand customer base.