KE Holdings, Inc. Class A (HK:2423)
:2423
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Earnings Data
Report Date
Sep 02, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.83Last Year’s EPS
0.56Same Quarter Last Year
Strong Buy
Based on 11 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized meaningful, structural improvements in profitability, margins, per-capita productivity and cost discipline, supported by strong cash reserves and active share repurchases. These positive operational and margin trends were achieved despite YoY declines in GTV and revenue, with notable weakness in the new-home and renovation segments and a reported operating cash outflow driven by timing items. Management framed results as the start of a multi-year transformation (AI, productization, front-line reallocation) that should support sustainable, higher-quality growth. On balance, the highlights (profit/margin expansion, operational efficiency, rental scale growth, strong liquidity and repurchases, AI adoption) outweigh the lowlights (top-line declines, new-home contraction, renovation revenue weakness, temporary cash outflow), leading to a constructive but cautious outlook.Company Guidance
Strong profitability and margin expansion
Non-GAAP operating profit reached RMB 1.67 billion (+45.1% YoY, +416.2% QoQ); non-GAAP operating margin rose to 8.8% (highest in 7 quarters, +3.9 ppts YoY, +7.4 ppts QoQ). GAAP net income was RMB 1.26 billion (+46.7% YoY) and non-GAAP net income was RMB 1.61 billion (+15.7% YoY).
Gross margin improvement
Group gross margin expanded to 24.1% (up ~3–3.5 percentage points YoY), driven by mix shift toward higher-margin existing home transactions and contribution margin gains across core businesses.
Contribution margin gains across core businesses
Existing home contribution margin 41.3% (up 3.2 ppts YoY); new home contribution margin 25.7% (up 2.3 ppts YoY); home renovation contribution margin 36.2% (up 3.6 ppts YoY); home rental contribution margin 14.8% (up 8.1 ppts YoY). Management attributes gains to cost-structure optimization and productivity improvements.
Operating expense discipline
Total GAAP operating expenses were RMB 3.3 billion (lowest in nearly 3 years), down 22.3% YoY and down 33% QoQ. Store costs were RMB 571 million (down 20.3% YoY). G&A, S&M and R&D all declined YoY and QoQ.
Improved Lianjia productivity and transaction metrics
Lianjia per-capita transaction volume rose 26% YoY and per-capita commission rose 8.5% (Jan–Apr cumulative per-capita commission +20% YoY). Platform existing-home transactions grew 12% YoY; March set an all-time monthly record (+21% YoY) and April expanded to >30% YoY growth on the platform.
Rental business scale and unit economics
Managed rental units exceeded 740,000 (+~47% YoY). Home rental revenue RMB 500 million (slight -1.5% YoY) but contribution margin improved to 14.8% (+8.1 ppts YoY, +4 ppts QoQ) with >40% of managed units recognized on a net method that carries higher margin.
Active shareholder returns and strong liquidity
Spent around USD 195–200 million on share repurchases in Q1 (up ~40% YoY); cumulative repurchases since Sept 2022 ~USD 2.7 billion (repurchased shares representing ~13.5% of pre-program outstanding). Broader cash balances (ex-customer deposits) ~RMB 65.6 billion at quarter-end.
Technology and AI-driven operational adoption
Frontline application platform covered >7,100 employees with >4,400 applications; total business on those apps surpassed RMB 4.12 million, demonstrating rapid AI/tool adoption to amplify frontline expertise and improve efficiency.
HK:2423 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HK:2423 Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 19, 2026 | HK$46.02 | HK$45.58 | -0.96% |
Mar 16, 2026 | HK$42.71 | HK$43.71 | +2.34% |
Nov 10, 2025 | HK$40.12 | HK$41.51 | +3.47% |
Aug 26, 2025 | HK$50.10 | HK$49.61 | -0.98% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does KE Holdings, Inc. Class A (HK:2423) report earnings?
KE Holdings, Inc. Class A (HK:2423) is schdueled to report earning on Sep 02, 2026, After Close (Confirmed).
What is KE Holdings, Inc. Class A (HK:2423) earnings time?
KE Holdings, Inc. Class A (HK:2423) earnings time is at Sep 02, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of KE Holdings, Inc. Class A stock?
The P/E ratio of KE Holdings, Inc. Class A is N/A.
What is HK:2423 EPS forecast?
HK:2423 EPS forecast for the fiscal quarter 2026 (Q2) is 0.83.