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Kingsoft Cloud Holdings
(NASDAQ:KC)
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Rating:57Neutral
Price Target:
$9.00
▼(-14.37% Downside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by improving financial trajectory (especially strong cash flow improvement alongside narrowing losses) and a positive earnings-call trend toward AI-led growth and operating profitability. These positives are moderated by still-negative earnings/ROE, heavy CapEx and cost pressures, and a mixed technical setup with longer-term moving averages still overhead; valuation is also constrained by a negative P/E.
Positive Factors
AI-led revenue growth
Rapid AI cloud and public cloud growth indicates expanding demand for Kingsoft Cloud’s infrastructure and platform services. A larger AI revenue mix can improve scale, deepen customer adoption, and support durable growth as enterprises and public-sector users build workloads around AI.
Negative Factors
Net losses and weak profitability
Kingsoft Cloud has not yet achieved consistent reported profitability, with negative net income, slightly negative EBIT, and negative ROE. Continued losses could limit retained capital and weaken the benefits of revenue growth unless margin improvement persists after infrastructure costs fully flow through.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-led revenue growth
Rapid AI cloud and public cloud growth indicates expanding demand for Kingsoft Cloud’s infrastructure and platform services. A larger AI revenue mix can improve scale, deepen customer adoption, and support durable growth as enterprises and public-sector users build workloads around AI.
Read all positive factors
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.79B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)1.96
Revenue Growth34.93%
EPS Growth74.60%
CountryUS
Employees14,394
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-2.05
Shares Outstanding302,119,000
10 Day Avg. Volume1,191,388
30 Day Avg. Volume1,171,364
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 Cap1.09
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda0.71
Forecast
1Y Price Target
$17.33Price Target Upside64.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.65
Revenue Forecast (FY)$12.85B
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:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call reflected a predominantly positive transformation driven by AI: record quarterly revenue, rapid AI cloud and MaaS growth, improved margins and a return to operating profitability. Management emphasized strong product and ecosystem momentum, major customer wins and continued large-scale investment in AI compute. Key challenges include enterprise cloud deceleration, elevated infrastructure-related costs (notably large increases in depreciation and IDC costs), supply/ procurement constraints for chips, and heavy near-term CapEx which modestly reduced cash. On balance, the operational and financial progress (notably AI revenue acceleration, margin improvement and operating profit) outweighs the near-term cost and supply headwinds.Positive Updates
Record Revenue and Strong AI-Driven Growth
Total revenue reached a record RMB 3.07 billion, up 31% year-over-year (and ~40% quarter-over-quarter). AI cloud gross billings grew 82% YoY to RMB 1.33 billion, representing ~56% of public cloud revenue and over 43% of total revenue (vs 31% a year ago). Public cloud revenue was RMB 2,358 million, up 45% YoY.
Negative Updates
Enterprise Cloud Deceleration
Enterprise cloud revenue was RMB 714 million, down 1% YoY (RMB 724 million prior year), with deceleration noted over the past two quarters. Management cited upstream supply-driven pricing pressures, seasonality (second-half delivery concentration), and a deliberate shift from project-based to operating-based models (some reclassification into public cloud) as drivers of near-term weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong AI-Driven Growth
Total revenue reached a record RMB 3.07 billion, up 31% year-over-year (and ~40% quarter-over-quarter). AI cloud gross billings grew 82% YoY to RMB 1.33 billion, representing ~56% of public cloud revenue and over 43% of total revenue (vs 31% a year ago). Public cloud revenue was RMB 2,358 million, up 45% YoY.
Read all positive updates
Company Guidance
Management reiterated a disciplined investment posture, keeping full‑year CapEx guidance unchanged at RMB 15.0 billion, noting H1 capitalized CapEx and lease assets of RMB 6.2 billion (over 75% of prior year full‑year CapEx) and Q2 CapEx/ROU additions of RMB 3.3 billion (vs. RMB 2.9 billion in Q1 and RMB 2.8 billion a year ago); cash and cash equivalents were RMB 4,674 million as of June 30 (down from RMB 4,904 million at March 31); shareholders also approved combined connected‑transaction caps with Xiaomi of RMB 10 billion for 2026–2027 (up 39%); management said it will continue to invest in AI infrastructure, expand MaaS and product offerings, manage credit and liquidity risk, and improve compute utilization, operating efficiency, profitability and cash generation/ROIC going forward.Kingsoft Cloud Holdings Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.01B | 9.56B | 7.79B | 7.05B | 8.18B | 9.06B |
| Gross Profit | 1.66B | 1.50B | 1.34B | 850.17M | 429.54M | 351.29M |
| EBITDA | 4.28B | 2.03B | -487.77M | -1.08B | -1.37B | -668.37M |
| Net Income | -601.50M | -936.25M | -1.97B | -2.18B | -2.66B | -1.59B |
Balance Sheet | ||||||
| Total Assets | 30.71B | 26.75B | 17.59B | 15.07B | 17.32B | 21.08B |
| Cash, Cash Equivalents and Short-Term Investments | 4.73B | 6.12B | 2.74B | 2.26B | 4.67B | 6.71B |
| Total Debt | 6.86B | 6.47B | 5.20B | 1.72B | 1.35B | 1.62B |
| Total Liabilities | 21.82B | 17.43B | 12.09B | 7.82B | 7.73B | 9.59B |
| Stockholders Equity | 8.90B | 9.32B | 5.17B | 6.89B | 8.80B | 10.60B |
Cash Flow | ||||||
| Free Cash Flow | 1.40B | -941.34M | -3.05B | -2.13B | -1.25B | -1.44B |
| Operating Cash Flow | 6.14B | 3.80B | 628.42M | -169.07M | 188.97M | -708.87M |
| Investing Cash Flow | -7.69B | -4.53B | -3.62B | -673.19M | -32.87M | -421.62M |
| Financing Cash Flow | 978.39M | 4.18B | 3.26B | -227.85M | -1.15B | 2.21B |
Kingsoft Cloud Holdings Technical Analysis
Negative
10.51
Price Trends
10.46
Negative
10.64
Negative
12.24
Negative
Market Momentum
-0.34
Negative
44.35
Neutral
42.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Negative. The current price of 10.51 is above the 20-day moving average (MA) of 9.44, above the 50-day MA of 10.46, and below the 200-day MA of 12.24, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 42.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.43B | 19.35 | 11.84% | 1.38% | 15.01% | 11.40% | |
66 Neutral | $4.67B | -55.28 | -8.46% | ― | 20.35% | 48.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $2.79B | -6.57 | -7.08% | ― | 34.93% | 74.60% | |
57 Neutral | $381.52M | 33.10 | 1.96% | ― | 13.62% | ― | |
51 Neutral | $1.85B | -3.74 | -62.87% | 1.14% | -37.55% | -18.96% | |
46 Neutral | $201.37M | -14.62 | -164.67% | ― | -0.23% | 33.15% |
* Technology Sector Average
KC
Kingsoft Cloud Holdings
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-4.17
-31.05%
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Kingsoft Cloud Holdings Corporate Events
Kingsoft Cloud Reports Stable Share Capital and Confirms Hong Kong Float Compliance for September 2026
Oct 7, 2026
Kingsoft Cloud Holdings Limited is a China-based cloud services provider listed on the Hong Kong Stock Exchange under stock code 03896. The company offers cloud computing infrastructure and related services, with its equity widely held to satisfy ...
Kingsoft Cloud Files September 2026 Form 6-K to Furnish Interim Report
Sep 21, 2026
On September 21, 2026, Kingsoft Cloud Holdings Limited filed a Form 6-K with the U.S. Securities and Exchange Commission for the month of September 2026, confirming its status as a foreign issuer reporting under Form 20-F. The filing, signed by Ch...
Kingsoft Cloud Reports Stable Share Capital and Confirms Public Float Compliance in August 2026
Sep 4, 2026
On September 4, 2026, Kingsoft Cloud filed a Form 6-K with the U.S. Securities and Exchange Commission and submitted a monthly return to Hong Kong Exchanges, detailing movements in its share capital for the month ended August 31, 2026. The filing ...
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.