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Kingsoft Cloud Holdings Limited
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NASDAQ: KC Technology IT 🔎 Screen
$2.5B
Market Cap
—
P/E
—
PEG
-9.3%
ROCE
-12.7%
ROE
1.13
D/E
-8.1%
OPM
-49.2%
% from 52W High
28
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for KC including FX impact
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📈 Price History
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About

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company’s product portfolio includes cloud products, such as infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, software as a service (SaaS) applications, and AI solution. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, China.

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📊 MIXED Kingsoft Cloud Q1 2026 revenue RMB 2.7B, AI cloud billing RMB 1B, up 90% YoY
Revenue & Profitability
Revenue was RMB 2,704M, up 37% YoY. Adjusted gross profit was RMB 351M, up 7% YoY. Adjusted operating loss was RMB 60M (2% margin). Non-GAAP EBITDA profit was RMB 748M, up 135% YoY, with margin 27.6%. Net income was not disclosed.
Outlook
Management sees explosive growth in AI demand across inference and training, driven by AI coding, agents, autonomous driving, and robotics. The company faces supply chain constraints but remains optimistic about revenue growth. They aim to capitalize on this opportunity by further investing in infrastructure.
Growth Drivers
Key growth drivers include AI cloud services (inference and training), expansion of token services (revenue 53x from Jan to Apr), deepening ecosystem partnerships with Xiaomi/Kingsoft, and winning new non-ecosystem customers across internet, autonomous driving, fintech, and logistics (top five non-ecosystem customers grew 66% YoY).
Balance Sheet & CapEx
Q1 2026 CapEx and leased assets totaled RMB 3.0B (up 38% YoY). Management expects full-year CapEx of RMB 15B-20B, constrained by supply chain capacity. Investment is focused on AI computing resources to support demand.
Margins
Adjusted gross margin declined to 30% in Q1 (from 70% last quarter) due to higher AI server costs and upfront investments, but management expects recovery to normal levels. Adjusted EBITDA margin improved to 27.6% (up 11.4pp YoY). Token services margins are higher than traditional cloud, and the company sees operating leverage from scale.
Key Risks
Key risks include supply chain constraints limiting capacity expansion, upfront cost pressure on gross margins, and reliance on Xiaomi/Kingsoft ecosystem (31% of revenue). Management is addressing these through flexible contract terms and capacity investments.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2026 Q1 2026 2026-05-27
Q1 2026 saw revenue rise 37% year-over-year to RMB 2.7 billion, with AI business now the main growth driver and public cloud revenue up 47%. Adjusted EBITDA margin improved to 28%, while supply chain constraints and rising costs remain key risks.
Q4 2025 Q4 2025 2026-03-25
Q4 2025 saw record revenue and strong AI-driven growth, with Public Cloud up 35% and adjusted EBITDA margin at 28%. Profitability improved, CapEx for 2026 will exceed RMB 10 billion, and demand from external AI customers is expected to accelerate growth.
Q3 2025 Q3 2025 2025-11-19
Q3 2025 saw 31% year-over-year revenue growth, driven by AI and Intelligent Computing Cloud, with public cloud revenue up 49%. Margins improved, and adjusted net profit turned positive. Strong ecosystem partnerships and strategic investments underpin confidence in continued AI-driven growth.
Q2 2025 Q2 2025 2025-08-20
Q2 2025 revenue grew 24% year-over-year to RMB 2.35 billion, driven by a 120% surge in AI-related billings and strong ecosystem partnerships. Public cloud revenue rose 32%, while adjusted gross margin declined to 14.9% due to higher AI-related costs. Second half revenue growth is expected to accelerate.
Q1 2025 Q1 2025 2025-05-28
Revenue grew 11% year-over-year to RMB 1.97 billion, led by a 200%+ surge in AI business and strong ecosystem partnerships. Public cloud rose 14%, enterprise cloud 5%, and non-GAAP EBITDA margin improved to 16.2%. Margin expansion is expected in the second half as AI projects scale.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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