Kingsoft Cloud reported RMB 2.703 billion in Q1 2026 revenue, driven by a 90% AI business increase, despite a RMB 343.7 million net loss.
Kingsoft Cloud Holdings (NASDAQ:KC) posted a 37.2% year-over-year revenue increase to RMB 2.703 billion in Q1 2026, fueled by a 90% surge in its AI business. The segment now accounts for over half of public cloud revenue, reflecting strong demand for AI-driven solutions.
The company narrowed its operating loss and achieved a 27.6% adjusted EBITDA margin, though a net loss of RMB 343.7 million persisted. Kingsoft Cloud invested RMB 3 billion in infrastructure during the quarter to support AI expansion, impacting short-term gross margins.
Management expects to sustain this investment pace to capitalize on cloud market opportunities, backed by RMB 4.9 billion in cash reserves. The focus remains on scaling AI and enterprise cloud operations under its long-term growth strategy.