Kingsoft Cloud Holdings Limited Q2 2026 Earnings Recap

Kingsoft Cloud’s Q2 earnings drove a 5.4% stock gain, led by strong revenue growth in AI cloud and MaaS segments alongside improved profitability, which together outpaced market expectations.

Key Takeaways

• Total revenue reached a record RMB 3.07 billion, up 31% year-over-year, fueled by an 82% surge in AI cloud gross billings to RMB 1.33 billion, now 56% of public cloud revenue.
• MaaS revenue increased more than 12-fold sequentially, reflecting rapid acceleration in this emerging business line.
• Adjusted gross margin improved 2.4 percentage points quarter-over-quarter to 15.4%, with adjusted operating margin turning positive at 4.0%.
• Public cloud revenue grew 45% year-over-year to RMB 2.36 billion, underpinned by strong growth in Xiaomi and Kingsoft ecosystem customers (up 28% YoY) and 51% growth from top 5 non-ecosystem customers.
• Continued technology enhancements pushed platform capabilities for AI model deployment, training, and inference efficiency, supporting future scalability and cost reduction efforts.