---
title: "Kingsoft's AI Cloud Billings Jump 82%, Stock Soars"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296347641.md"
description: "Kingsoft Cloud (NASDAQ: KC) shares surged after Q2 2026 results beat estimates, driven by an 82% YoY jump in AI cloud billings. Revenue rose 30.8% YoY to 3.07 billion yuan, with public cloud revenue up 45.1%. The company reported its first positive GAAP operating margin and adjusted EPS of -3 cents, beating the -10 cent estimate. Strong AI demand and operational improvements fueled profitability gains."
datetime: "2026-08-19T11:14:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296347641.md)
  - [en](https://longbridge.com/en/news/296347641.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296347641.md)
generator: "portal-rs"
---

# Kingsoft's AI Cloud Billings Jump 82%, Stock Soars

**Kingsoft Cloud Holdings Ltd.** (NASDAQ:KC) stock jumped Wednesday after the company reported second-quarter 2026 results that beat analyst estimates as demand for AI-related cloud services accelerated.

## AI Cloud Demand Drives Revenue Growth

Kingsoft Cloud reported revenue of 3.07 billion Chinese yuan ($452.75 million), up 30.8% year over year. Revenue beat the analyst consensus estimate of $447.80 million.

Revenue also rose 13.6% from the previous quarter. The company attributed the sequential growth mainly to stronger demand from AI-related customers and continued upgrades to its AI infrastructure and products.

## Public Cloud Revenue Jumps

Public cloud services revenue increased 45.1% year over year to 2.36 billion Chinese yuan ($347.47 million). Revenue rose 18.1% from the previous quarter as AI demand remained strong.

Enterprise cloud services revenue fell 1.3% year over year to 714.35 million Chinese yuan ($105.28 million). However, it increased 1% sequentially.

## Profitability Improves

Adjusted gross profit increased to 471.7 million Chinese yuan ($69.5 million) from 350.6 million Chinese yuan a year earlier.

Adjusted gross margin improved to 15.4% from 14.9% a year earlier and 13% in the previous quarter. Kingsoft Cloud cited stronger AI demand and operational improvements.

The company posted an adjusted operating profit of 124 million Chinese yuan ($18.3 million), compared with an adjusted operating loss of 166.4 million Chinese yuan a year earlier.

Kingsoft Cloud reported an adjusted loss of 3 cents per American depositary share, beating the analyst consensus estimate for a loss of 10 cents per ADS.

The company ended the quarter with 4.67 billion Chinese yuan ($688.9 million) in cash and cash equivalents as of June 30.

## AI Demand Lifts Growth And Profitability

Kingsoft Cloud executives highlighted accelerating AI demand and improving profitability while signaling continued investment to support long-term growth.

CEO **Tao Zou** said gross billings from the company’s AI cloud business jumped 82% year over year and accounted for 56% of public cloud revenue. Growth came from higher contributions from AI infrastructure services and Model-as-a-Service offerings.

Zou also highlighted Kingsoft Cloud’s first positive GAAP operating margin. Its adjusted operating margin reached 4%, helped by stronger gross margins and greater operating efficiency.

CFO **Yi Li** attributed the profitability gains to AI demand and operational improvements. Li said Kingsoft Cloud remains committed to investing for long-term growth.

Second-quarter capital expenditures, including assets financed through leasing arrangements, reached 3.3 billion Chinese yuan, up from the first quarter.

## KC Price Action

Kingsoft Cloud shares were up 8.12% at $11.72 at the time of publication Wednesday, according to Benzinga Pro.

*Photo via Shutterstock*

 **Read Also: AI Killing Software? Analyst Says ‘I Don’t See a Software Apocalypse’**

### Related Stocks

- [KC.US](https://longbridge.com/en/quote/KC.US.md)
- [03896.HK](https://longbridge.com/en/quote/03896.HK.md)

## Related News & Research

- [Kingsoft Cloud Holdings (KC) Q2 Profit Turn As AI Cloud Growth Puts Valuation In Focus](https://longbridge.com/en/news/296452812.md)
- [Kingsoft Cloud: Record revenue and first positive operating margin, led by strong AI cloud growth](https://longbridge.com/en/news/296335179.md)
- [Why Kingsoft Cloud stock is soaring today](https://longbridge.com/en/news/296379846.md)
- [What does Europe’s AI lag mean for the region?](https://longbridge.com/en/news/296510589.md)
- [Kingsoft Cloud (NASDAQ:KC) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS](https://longbridge.com/en/news/296351510.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**