Kingsoft Cloud Q2: AI Billings Surge 82%, First GAAP Operating Profit
KC sits 41% above its 52-week low of $8.35.
Summary
Kingsoft Cloud delivered a strong Q2 beat, with revenue up 30.8% YoY to RMB3.07B ($452.75M) versus the $447.8M consensus. The standout is AI cloud billings jumping 82% YoY and now representing 56% of public cloud revenue, driving public cloud growth of 45.1%. Profitability inflected: the company posted its first positive GAAP operating margin and adjusted operating margin of 4%, swinging from an adjusted operating loss a year ago. Adjusted EPS loss of $0.03 beat the $0.10 loss estimate. Capex of RMB3.3B signals continued heavy AI infrastructure investment. Shares rose 8.12% to $11.72 on the news. This follows the board meeting held today to approve these results, and the stock move reflects the market's positive reaction to accelerating AI demand and margin improvement.
At the time of this announcement, KC was trading at $11.81 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 news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.