Kingsoft Cloud reports record Q2 revenue, first positive operating profit

Kingsoft Cloud Hldgs (NASDAQ: KC ) reported second-quarter financial results on Wednesday.

The transcript from the company's second-quarter earnings call has been provided below.

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View the webcast at Summary Kingsoft Cloud Holdings reported a record total revenue of RMB 3.07 billion for Q2 2026, marking a 31% year-over-year increase, driven by strong AI cloud growth.

The company's adjusted gross margin improved to 15.4%, and it achieved a positive operating profit for the first time, with an adjusted operating margin of 4.0%.

Public cloud revenue grew 45% year-over-year, bolstered by increased demand from Xiaomi and Kingsoft ecosystems, while enterprise cloud revenue saw a slight year-on-year decline.

Kingsoft Cloud is focusing on AI cloud market evolution, strengthening its AI cloud, Model as a Service (MAS), and FTE businesses, and expanding its customer base across diverse sectors.

The company plans continued investment in AI infrastructure, with 2026 full-year CAPEX expected to remain in line with previous guidance, amidst ongoing supply challenges in chip procurement.

Management highlighted a strategic focus on maintaining neutrality in the AI cloud market, allowing them to cater to diverse customer preferences for AI models.

Looking ahead, Kingsoft Cloud aims to capitalize on AI demand growth, optimize business structures, improve capital efficiency, and enhance profitability and cash generation capabilities.

Full Transcript B Good morning ladies and gentlemen and thank you for standing by for Kingsoft Cloud's second quarter 2026 earnings conference call.

All participants are currently in listen only mode.

Following Management's prepared remarks, we will open the call for questions.

Please note that today's call is being recorded.

I will now turn the call over to Mr.

Jackie Zor, senior director of capital markets at Kingsoft.

Clyde Jackie, please go ahead.

C Thank you.

Operator hello everyone and thank you for joining us today.

Kingsoft Cloud's second quarter 2026 earnings release was issued earlier today and is available on our IR website and through PR Newswire.

Joining us today are Mr.

Zhou Tao, Chairman and CEO Ms.

Li Yi, CFO Mr.

Liu Tao, Senior Vice President, Mr.

Tian Kai Yan, Senior Vice President, Ms.

Yu Jun, Vice President, Mr.

Zhou Railong, Associate Vice President and Mr.

Clark Tian, Boss, Secretary and Associate Vice President.

Mr.

So will discuss our business performance and key developments, followed by Ms.

Lee with a review of our financial results.

Management will then take your questions.

Consecutive interpretation will be provided for convenience and for reference only.

In the event of any discrepancy, Management statements in the original language will prevail.

Before we begin, I would like to remind you that today's call contains forward looking statements made under the safe harbor provisions of U.S. private Securities Litigation Reform act of Magnet 5.