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Kingsoft Cloud Holdings
(NASDAQ:KC)
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Rating:52Neutral
Price Target:
$10.50
▲(10.88% Upside)
Action:Reiterated
Date:07/09/26
Overall score reflects an improving operating trajectory (stronger revenue growth, materially better EBITDA, and improved operating cash flow) but still-constrained underlying profitability (low gross margin, ongoing net losses, and only breakeven free cash flow). Technicals remain a headwind with the stock below key longer-term moving averages and negative MACD. The latest earnings call supports the growth narrative (AI-driven demand and expanding mix) but highlights meaningful margin pressure, supply constraints, and very heavy planned capital spending that increase execution and liquidity risk.
Positive Factors
AI-driven revenue mix
AI revenue now representing ~50% of public cloud is a structural mix shift toward higher-value, usage-intensive workloads. This durable change increases revenue per customer, supports recurring consumption and product differentiation, underpinning sustained top-line growth if capacity scales.
Negative Factors
Low gross margins & net losses
Persistently low gross margins and ongoing net losses constrain durable profitability. With gross margins near ~15%, the business is exposed to component price rises and capacity costs, limiting free cash flow conversion and making sustainable profits dependent on continued mix improvement or pricing power.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven revenue mix
AI revenue now representing ~50% of public cloud is a structural mix shift toward higher-value, usage-intensive workloads. This durable change increases revenue per customer, supports recurring consumption and product differentiation, underpinning sustained top-line growth if capacity scales.
Read all positive factors
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.90B
Dividend YieldN/A
Average Volume (3M)1.40M
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth31.25%
EPS Growth56.23%
CountryUS
Employees15,225
SectorTechnology
Sector Strength88
IndustrySoftware - Services
Share Statistics
EPS (TTM)-3.54
Shares Outstanding302,119,000
10 Day Avg. Volume1,211,487
30 Day Avg. Volume1,397,381
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)2.12
Price to Sales (P/S)2.07
P/FCF Ratio-21.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.75Price Target Upside76.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-2.43
Revenue Forecast (FY)$12.73B
Kingsoft Cloud Holdings Business Overview & Revenue Model
Company Description
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 (...
How the Company Makes Money
Kingsoft Cloud primarily makes money by selling cloud services under usage-based and contract-based arrangements to business and institutional customers. Its core revenue stream comes from cloud products and solutions, including (1) Infrastructure...
Kingsoft Cloud Holdings Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call conveyed strong top-line growth, a decisive structural shift toward AI-driven revenue (AI now >50% of public cloud), and a large improvement in adjusted EBITDA and EBITDA margin—underscoring improving profitability from a higher-value mix. However, the company faces meaningful near-term cost and supply-chain pressures (higher IDC costs, steep depreciation, heavy capex), a QoQ gross-profit decline, and constrained ability to immediately scale due to supply limitations. Management plans substantial continued investment (RMB 15–20 billion capex guide) to capture demand while expecting margins to recover as capacity and pricing normalize.Positive Updates
Strong Overall Revenue Growth
Total revenue of RMB 2,704 million in Q1 2026, representing year-over-year growth of ~37.2%. Revenue growth has been consecutive for 8 quarters.
Negative Updates
Quarterly Gross Profit / Margin Pressure
Adjusted gross profit was RMB 351 million (up ~7–8.6% YoY) but decreased 25% quarter-over-quarter. Adjusted gross margin fell from 17% in the prior quarter to 13% in Q1, reflecting higher AI-related server costs and upfront costs for future revenue-generating activities.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total revenue of RMB 2,704 million in Q1 2026, representing year-over-year growth of ~37.2%. Revenue growth has been consecutive for 8 quarters.
Read all positive updates
Company Guidance
Management guided that Kingsoft Cloud will continue heavy AI-driven investment to “capitalize on explosive demand,” reiterating plans to increase infrastructure spend (Q1 capex/leased assets ~RMB 2,985m, +38% YoY) and projecting 2026 capital spending of roughly RMB 15–20 billion, while managing liquidity and improving operating efficiency; they expect gross margin to recover toward normal levels after Q1 adjusted gross margin fell to ~13% (from 17% prior quarter) even as Q1 results showed total revenue of RMB 2,704m (+~37% YoY), public cloud RMB 1,996m (+47.5%), enterprise cloud ~RMB 710m (+14.7%), AI revenue RMB 998m (+91% YoY) with AI cloud gross billings ~RMB 1.0bn (+90.1%) accounting for 50.1% of public cloud, adjusted gross profit RMB 351m (+~7–8.6% YoY), adjusted EBITDA RMB 748m (+~135% YoY; margin ~28%, +~11 ppt YoY), adjusted operating loss RMB 60m (margin ~2%), and noted supply-chain capacity is the primary constraint; they also plan to revise connected-transaction caps with Xiaomi/Kingsoft to RMB 14.2bn for 2025–2027.Kingsoft Cloud Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
55
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.29B | 9.56B | 7.79B | 7.05B | 8.18B | 9.06B |
| Gross Profit | 1.53B | 1.50B | 1.34B | 850.17M | 429.54M | 351.29M |
| EBITDA | 2.07B | 2.03B | -487.77M | -1.08B | -1.37B | -668.37M |
| Net Income | -966.14M | -936.25M | -1.97B | -2.18B | -2.66B | -1.59B |
Balance Sheet | ||||||
| Total Assets | 28.46B | 26.75B | 17.59B | 15.07B | 17.32B | 21.08B |
| Cash, Cash Equivalents and Short-Term Investments | 4.90B | 6.12B | 2.74B | 2.26B | 4.67B | 6.71B |
| Total Debt | 7.00B | 6.47B | 5.20B | 1.72B | 1.35B | 1.62B |
| Total Liabilities | 19.46B | 17.43B | 12.09B | 7.82B | 7.73B | 9.59B |
| Stockholders Equity | 9.00B | 9.32B | 5.17B | 6.89B | 8.80B | 10.60B |
Cash Flow | ||||||
| Free Cash Flow | 11.03M | -941.34M | -3.05B | -2.13B | -1.25B | -1.44B |
| Operating Cash Flow | 4.75B | 3.80B | 628.42M | -169.07M | 188.97M | -708.87M |
| Investing Cash Flow | -5.67B | -4.53B | -3.62B | -673.19M | -32.87M | -421.62M |
| Financing Cash Flow | 3.64B | 4.18B | 3.26B | -227.85M | -1.15B | 2.21B |
Kingsoft Cloud Holdings Technical Analysis
Positive
9.47
Price Trends
10.75
Positive
12.97
Negative
12.64
Negative
Market Momentum
-0.35
Negative
41.23
Neutral
23.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Positive. The current price of 9.47 is below the 20-day moving average (MA) of 10.02, below the 50-day MA of 10.75, and below the 200-day MA of 12.64, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KC.
Kingsoft Cloud Holdings Risk Analysis
Kingsoft Cloud Holdings disclosed 98 risk factors in its most recent earnings report. Kingsoft Cloud Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kingsoft Cloud Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.50B | 43.50 | 77.45% | 1.44% | 17.39% | -31.63% | |
73 Outperform | $5.33B | -217.09 | -3.04% | ― | 33.60% | 63.13% | |
66 Neutral | $4.52B | -13,675.76 | <0.01% | ― | 12.47% | -98.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $4.92B | 59.90 | 5.79% | ― | 20.67% | ― | |
52 Neutral | $2.90B | -21.25 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
KC
Kingsoft Cloud Holdings
11.15
-2.80
-20.07%
BILL
Bill.com Holdings
45.13
2.73
6.44%
GBTG
Global Business Travel Group
9.44
3.20
51.28%
ZETA
Zeta Global Holdings Corp
21.60
5.80
36.71%
YOU
Clear Secure
55.24
25.77
87.43%
Kingsoft Cloud Holdings Corporate Events
Kingsoft Cloud Confirms June Share Capital Stability and Public Float Compliance
Jul 7, 2026
Kingsoft Cloud Holdings Limited reported to U.S. regulators in a July 7, 2026 Form 6-K that it had submitted a monthly return to the Hong Kong Stock Exchange detailing movements in its authorized share capital and issued shares for June 2026. The ...
Kingsoft Cloud Keeps Share Capital Stable, Confirms HKEX Float Compliance in May 2026
Jun 4, 2026
Kingsoft Cloud Holdings reported in a June 4, 2026 filing that its authorized share capital and issued share count remained unchanged in May 2026, with 40 billion authorized ordinary shares and 4,531,784,801 issued shares and no treasury shares. T...
Kingsoft Cloud Q1 2026 Revenue Surges on AI Demand Despite Wider Net Loss
May 27, 2026
For the quarter ended March 31, 2026, Kingsoft Cloud reported total revenue of RMB2,703.7 million, up 37.2% year over year, driven by strong AI demand and deeper penetration in Xiaomi, Kingsoft ecosystem and enterprise customers. Public cloud reve...
Kingsoft Cloud Reports No Share Capital Changes in April 2026 Hong Kong Filing
May 7, 2026
On May 7, 2026, Kingsoft Cloud Holdings filed a Form 6-K in the United States and submitted a monthly return to the Hong Kong Stock Exchange detailing its share capital movements for April 2026. The filing shows its authorized share capital remain...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.