Key Highlights

  • Kingsoft Cloud shares closed up approximately 14.11 percent at $12.37, up $1.53 from the prior close of $10.84.
  • Second-quarter Revenue reached a record RMB3.07 billion, up 30.8 percent year over year, beating estimates.
  • AI cloud gross billings surged 82 percent year over year to RMB1.33 billion, now accounting for 56 percent of public cloud revenue.
  • The company posted its first-ever GAAP operating profit and narrowed its net loss by nearly 80 percent year over year.

Shares Surge on Record AI Cloud Growth

Kingsoft Cloud shares closed up about 14.11 percent at $12.37, driven by the company's record second-quarter revenue of RMB3.07 billion, up 30.8 percent year over year and beating estimates. The growth was fueled by explosive AI cloud demand, with gross billings from AI cloud services surging 82 percent year over year to RMB1.33 billion, now representing 56 percent of the company's public cloud revenue.

Kingsoft Cloud (NASDAQ:KC) is a Beijing based independent cloud service provider dual-listed on Nasdaq and the Hong Kong Stock Exchange, delivering infrastructure, platform, and software cloud solutions across video, e-commerce, financial services, healthcare, and artificial intelligence sectors.

First-Ever GAAP Operating Profit Marks a Milestone

The company posted its first-ever GAAP operating profit during the quarter, with adjusted operating profit reaching RMB124 million and adjusted gross Margin expanding to 50.4 percent. Net loss narrowed to just RMB6 million, down sharply from RMB300 million a year earlier, reflecting significant progress in the company's path toward sustained profitability even as revenue growth remained robust.

Heavy AI Infrastructure Investment Weighs on Cash Reserves

Capital expenditures reached RMB3.3 billion during the quarter as the company continued to invest heavily in AI infrastructure, with management reaffirming full-year Capital Expenditure guidance of RMB15 billion. That spending has reduced cash reserves, and shares pulled back slightly in after-hours trading as some investors booked gains following the sharp intraday rally, though the underlying growth trajectory across both AI cloud and the company's ecosystem partnerships, including with Xiaomi, remained a central focus for investors.

The Bigger Picture

Kingsoft Cloud shares closed up about 14.11 percent at $12.37 after record second-quarter revenue and the company's first-ever GAAP operating profit. These are the verified facts as reported. Whether the rally holds may depend on how the company balances continued heavy AI infrastructure investment against its newly established path toward profitability.