Kingsoft Cloud Holdings Ltd. (Kingsoft Cloud (KC)) had a good day Wednesday. The stock jumped after the company reported second-quarter 2026 results that blew past analyst estimates, thanks to a surge in demand for AI-related cloud services.
Kingsoft Cloud Stock Soars as AI Demand Powers 82% Jump in Cloud Billings
MarketDash
Kingsoft Cloud (KC) shares jumped Wednesday after Q2 2026 results beat estimates, driven by a 30.8% revenue surge and accelerating AI cloud demand.
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AI Cloud Demand Drives Revenue Growth
The company reported revenue of 3.07 billion Chinese yuan ($452.75 million), up 30.8% year over year. That beat the analyst consensus of $447.80 million. Revenue also climbed 13.6% from the previous quarter, with the company pointing to stronger demand from AI customers and continued upgrades to its AI infrastructure and products.
Public Cloud Revenue Jumps
Public cloud services revenue jumped 45.1% year over year to 2.36 billion Chinese yuan ($347.47 million), and rose 18.1% sequentially as AI demand stayed hot. Enterprise cloud services revenue, on the other hand, dipped 1.3% year over year to 714.35 million Chinese yuan ($105.28 million), though it did manage a 1% sequential increase.
Profitability Improves
The bottom line is looking better too. Adjusted gross profit rose to 471.7 million Chinese yuan ($69.5 million) from 350.6 million yuan a year earlier. Adjusted gross margin improved to 15.4% from 14.9% a year ago and 13% in the previous quarter, helped by stronger AI demand and operational improvements.
The company posted an adjusted operating profit of 124 million Chinese yuan ($18.3 million), a big swing from an adjusted operating loss of 166.4 million yuan a year earlier. On a per-share basis, Kingsoft Cloud reported an adjusted loss of 3 cents per American depositary share, beating the consensus estimate for a loss of 10 cents per ADS.
As of June 30, the company had 4.67 billion Chinese yuan ($688.9 million) in cash and cash equivalents.
AI Demand Lifts Growth And Profitability
Executives were upbeat about the AI opportunity. CEO Tao Zou said gross billings from the company's AI cloud business jumped 82% year over year and now account 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. 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, and said the company remains committed to investing for long-term growth. Capital expenditures in the second quarter, including assets financed through leasing arrangements, hit 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.
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