Kingsoft Cloud (3896.HK) surged 10% during regular trading to HK$6.185 in Hong Kong trading.

The company reported second-quarter 2026 results with record revenue of RMB 3.072 billion, up 30.8% year-over-year. AI cloud computing revenue reached RMB 1.33 billion, surging 82% and accounting for 56% of public cloud revenue. Public cloud revenue grew 45.1% year-over-year.

Adjusted gross margin expanded to 15.4%, and the company posted its first-ever positive GAAP operating profit. Net loss narrowed sharply to RMB 92.98 million from RMB 456.9 million a year earlier.

Jefferies raised its price target on the US-listed shares to $17.70 and maintained a buy rating, citing second-quarter revenue in line with expectations and adjusted EBITDA above forecasts. The broker expects revenue growth to accelerate in the second half with continued margin improvement.