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Kingsoft Cloud Kingsoft Cloud Announces Unaudited Second Quarter 2026 Financial Results 08/19/2026 BEIJING , Aug. 19 , 2026 / PRNewswire / -- Kingsoft Cloud Holdings Limited ( " Kingsoft Cloud " or the " Company " ) ( NASDAQ : KC and HKEX : 3896 ) , a leading cloud service provider in China , today announced its unaudited financial results for the quarter ended June 30 , 2026 . Mr. Tao Zou , Chief Executive Officer of Kingsoft Cloud , commented : " We are excited to deliver a quarter of both strong growth and profitability . Gross billings from our Al cloud business grew 82 % year - over - year , representing 56 % of public cloud revenue , driven by incremental contributions from our Al cloud infrastructure services as well as Model - as - a - Service ( MaaS ) offerings . Profitability - wise , we recorded positive operating margin ( GAAP ) for the first time , and our adjusted operating profit margin increased significantly to reach 4.0 % [ 1 ] , thanks to our improved gross margin and operating efficiency . We remain committed to pursuing high - quality , sustainable growth strategy , deepening collaboration with customers both within and beyond our ecosystem , and strengthening our market position . " Ms. Yi Li , Chief Financial Officer of Kingsoft Cloud , added , " We delivered a strong quarter , with total revenue reaching a record high of RMB3,072.0 million , representing an increase of 30.8 % year - over - year . Adjusted gross profit increased by 34.6 % year - over - year to RMB471.7 million , with an adjusted gross margin of 15.4 % [ 2 ] , an improvement from last quarter . We also reached breakeven on operating profit ( GAAP ) , with adjusted operating profit margin reaching 4.0 % , demonstrating improving profitability thanks to Al demand tailwinds and operational optimization . We remain committed to investing for sustainable long - term growth , with capital expenditures ( including capitalized assets through leasing arrangements ) amounting to RMB3.3 billion in Q2 , an increase from Q1 . " Second Quarter 2026 Financial Results Total Revenues reached RMB3,072.0 million ( US $ 452.8 [ 3 ] million ) , increased by 30.8 % year - over - year from RMB2,349.2 million in the same quarter of 2025 , and increased by 13.6 % quarter - over - quarter from RMB2,703.7 million in the first quarter of 2026. The increase was mainly due to revenue growth from Al - related customers , supported by continued upgrades to our Al infrastructure and product offerings . Revenues from public cloud services were RMB2,357.6 million ( US $ 347.5 million ) , increased by 45.1 % year - over - year from RMB1,625.3 million in the same quarter of 2025 and increased by 18.1 % quarter - over - quarter from RMB1,996.3 million last quarter . The increase was mainly driven by growing demand for Al cloud services . Al cloud gross billings reached RMB1,327 million ( US $ 195.6 million ) , while our other public cloud services also maintained solid growth . Revenues from enterprise cloud services were RMB714.3 million ( US $ 105.3 million ) , representing a year - over - year decrease of 1.3 % from RMB723.9 million in the same quarter of 2025 and a quarter - over - quarter increase of 1.0 % from RMB707.4 million last quarter . [ 1 ] Our operating profit margin was 0.7 % . [ 2 ] Our gross profit was RMB466.2 million , representing a year - over - year increase of 37.6 % , with a gross margin of 15.2 % . [ 3 ] This announcement contains translations of certain Renminbi ( RMB ) amounts into U.S. dollars ( US $ ) at a specified rate solely for the convenience of the reader . Unless otherwise noted , the translation of RMB into US $ has been made at RMB6.7851 to US $ 1.00 , the noon buying rate in effect on June 30 , 2026 as certified for customs purposes by the Federal Reserve Bank of New York . Cost of revenues was RMB2,605.8 million ( US $ 384.0 million ) , representing an increase of 29.6 % from RMB2,010.4 million in the same quarter of 2025 , which was mainly due to our continued investment in Al computing resources . IDC costs increased by 23.3 % year - over - year from RMB803.1 million to RMB990.1 million ( US $ 146.0 million ) this quarter , largely in line with our revenue expansion . Depreciation and amortization costs increased from RMB552.0 million in the same quarter of 2025 to RMB963.8 million ( US $ 142.0 million ) this quarter . The increase was mainly due to the depreciation of newly acquired and leased servers , and network equipment which were mainly related to Al cloud business . Solution development and services costs increased by 3.9 % year - over - year from RMB563.7 million in the same quarter of 2025 to RMB585.7 million ( US $ 86.3 million ) this quarter . The increase was mainly due to the solution personnel expansion . Fulfillment costs and other costs were RMB15.1 million ( US $ 2.2 million ) and RMB51.1 million ( US $ 7.5 million ) this quarter . Gross profit was RMB466.2 million ( US $ 68.7 million ) , representing an increase of 37.6 % from RMB338.9 million in the same quarter of 2025. The increase was mainly due to the expansion of our revenue scale , especially the intelligent computing services . Gross margin was 15.2 % in this quarter , compared with 14.4 % in the same quarter of 2025 and 12.8 % last quarter . The increase was mainly due to higher profit contribution from our Al cloud business . Non - GAAP gross profit [ 4 ] was RMB471.7 million ( US $ 69.5 million ) , compared with RMB350.6 million in the same period in 2025 . Non - GAAP gross margin [ 4 ] was 15.4 % , compared with 14.9 % in the same period in 2025 . Total operating expenses were RMB443.2 million ( US $ 65.3 million ) , decreased by 33.4 % from RMB665.8 million in the same quarter of 2025 and decreased by 13.4 % from RMB511.9 million last quarter . Among which : Selling and marketing expenses were RMB113.1 million ( US $ 16.7 million ) , decreased by 14.3 % from RMB132.0 million in the same period in 2025 and decreased by 8.6 % from RMB123.8 million last quarter . The decrease was mainly due to the decrease of share - based compensation and personnel costs . General and administrative expenses were RMB140.2 million ( US $ 20.6 million ) , decreased by 58.7 % from RMB339.6 million in the same period in 2025 and decreased by 28.0 % from RMB194.8 million last quarter . The decrease was mainly due to the decrease of credit loss expenses and share - based compensation . Research and development expenses were RMB189.9 million ( US $ 28.0 million ) , decreased by 2.3 % from RMB194.3 million in the same period in