AI Cloud Demand Drives 34% Revenue Jump and 44% Narrower Loss for Kingsoft Cloud
KC sits 40% above its 52-week low of $8.35.
Summary
H1 2026 revenue reached RMB5.78 billion, up 33.7% year-over-year, with net loss narrowing 43.5% to RMB436.7 million. Adjusted EBITDA more than doubled to RMB1.85 billion, driven by AI cloud demand.
Key Events · Earnings and Guidance · KC
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Revenue Surges 33.7% on AI Demand
Total revenue for H1 2026 reached RMB5,775.7 million (US$851.2 million), up from RMB4,319.2 million a year earlier. Public cloud revenue jumped 46.2% to RMB4,353.9 million, driven by growing demand for AI cloud services.
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Net Loss Narrows 43.5%
Net loss attributable to Kingsoft Cloud was RMB436.9 million (US$64.4 million), down from RMB771.4 million in H1 2025. Basic and diluted loss per share improved to RMB0.10 from RMB0.20.
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Adjusted EBITDA More Than Doubles
Adjusted EBITDA reached RMB1,848.0 million (US$272.4 million), up 155.0% year-over-year. Adjusted EBITDA margin expanded to 32.0% from 16.8%.
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Cash Reserves Decline 22.3%
Cash and cash equivalents fell to RMB4,674.3 million (US$688.9 million) as of June 30, 2026, from RMB6,018.0 million at December 31, 2025, reflecting heavy investment in AI infrastructure.
Analysis · KC · Technology
A strong first half of 2026 saw revenue climb 33.7% to RMB5.78 billion, while the net loss narrowed 43.5% to RMB436.7 million. Surging demand for AI cloud services powered the growth, with public cloud revenue up 46.2%. Adjusted EBITDA more than doubled to RMB1.85 billion, and the adjusted EBITDA margin expanded from 16.8% to 32.0%. However, heavy investment in AI infrastructure caused cash reserves to fall 22.3% to RMB4.67 billion, and the gearing ratio rose to 71.0%. The results confirm that the company's pivot toward AI-driven growth is gaining traction, but the balance sheet is becoming more leveraged.
At the time of this filing, KC was trading at $11.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.4B. The 52-week trading range was $8.35 to $18.52. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.