Kingsoft Cloud Holdings Ltd. (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings
(NASDAQ:KC)
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Rating:47Neutral
Price Target:
$12.50
▼(-31.36% Downside)
Action:Reiterated
Date:05/29/26
Overall score reflects improving fundamentals and encouraging earnings-call momentum (strong AI-driven growth and sharply better adjusted EBITDA), offset by still-weak financial quality (ongoing losses and negative free cash flow), bearish technical setup (below major moving averages with negative MACD), and limited valuation support due to a negative P/E and no dividend yield.
Positive Factors
AI-driven revenue growth
Kingsoft Cloud has undergone a structural revenue mix shift toward AI, with AI billings growing ~90% YoY and representing the majority of public cloud. A durable AI-led revenue base supports higher-value services, stickier customer spend, and long-term addressable market expansion.
Negative Factors
Persisting GAAP losses and negative free cash flow
Despite improvements, Kingsoft Cloud remains GAAP-loss making and reported negative free cash flow (still negative in 2025), meaning core profitability and cash generation are not yet steady. Persistent losses and negative FCF constrain reinvestment and raise funding dependence over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven revenue growth
Kingsoft Cloud has undergone a structural revenue mix shift toward AI, with AI billings growing ~90% YoY and representing the majority of public cloud. A durable AI-led revenue base supports higher-value services, stickier customer spend, and long-term addressable market expansion.
Read all positive factors
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.96B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)―
Beta (1Y)1.75
Revenue Growth31.25%
EPS Growth56.23%
CountryUS
Employees12,335
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-3.60
Shares Outstanding302,119,000
10 Day Avg. Volume1,922,345
30 Day Avg. Volume1,477,827
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)2.12
Price to Sales (P/S)2.07
P/FCF Ratio-21.03
Enterprise Value/Market Cap6.74
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit17.75
Enterprise Value/Ebitda-59.32
Forecast
1Y Price Target
$19.00Price Target Upside4.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-2.55
Revenue Forecast (FY)$12.63B
Kingsoft Cloud Holdings Business Overview & Revenue Model
Company Description
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company offers public cloud services to customers in various verticals, including game, video, AI, e-commerce, education, and mobile internet; an...
How the Company Makes Money
Kingsoft Cloud primarily makes money by selling cloud services to customers under usage-based and contract-based arrangements. Its main revenue streams generally include: (1) Public cloud services, where customers consume standardized cloud produc...
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
38
Negative
Balance Sheet
55
Neutral
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.56B | 7.79B | 7.05B | 8.18B | 9.06B |
| Gross Profit | 1.50B | 1.34B | 850.17M | 429.54M | 351.29M |
| EBITDA | 2.03B | -487.77M | -1.08B | -1.37B | -668.37M |
| Net Income | -936.25M | -1.97B | -2.18B | -2.66B | -1.59B |
Balance Sheet | |||||
| Total Assets | 26.75B | 17.59B | 15.07B | 17.32B | 21.08B |
| Cash, Cash Equivalents and Short-Term Investments | 6.12B | 2.74B | 2.26B | 4.67B | 6.71B |
| Total Debt | 6.47B | 5.20B | 1.72B | 1.35B | 1.62B |
| Total Liabilities | 17.43B | 12.09B | 7.82B | 7.73B | 9.59B |
| Stockholders Equity | 9.32B | 5.17B | 6.89B | 8.80B | 10.60B |
Cash Flow | |||||
| Free Cash Flow | -941.34M | -3.05B | -2.13B | -1.25B | -1.44B |
| Operating Cash Flow | 3.80B | 628.42M | -169.07M | 188.97M | -708.87M |
| Investing Cash Flow | -4.53B | -3.62B | -673.19M | -32.87M | -421.62M |
| Financing Cash Flow | 4.18B | 3.26B | -227.85M | -1.15B | 2.21B |
Kingsoft Cloud Holdings Technical Analysis
Negative
18.21
Price Trends
15.06
Negative
14.15
Negative
13.62
Negative
Market Momentum
-0.76
Positive
39.32
Neutral
40.66
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 18.21 is above the 20-day moving average (MA) of 14.42, above the 50-day MA of 15.06, and above the 200-day MA of 13.62, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 40.66 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.50B | 44.10 | 77.45% | 2.11% | 17.39% | -31.63% | |
75 Outperform | $5.80B | -222.38 | -3.04% | ― | 33.60% | 63.13% | |
62 Neutral | $3.51B | 22,055.98 | <0.01% | ― | 12.47% | -98.50% | |
62 Neutral | $4.89B | 55.75 | 5.79% | ― | 20.67% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $3.96B | -26.68 | -12.16% | ― | 31.25% | 56.23% |
* Technology Sector Average
KC
Kingsoft Cloud Holdings
12.53
0.16
1.29%
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Kingsoft Cloud Holdings Corporate Events
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...
Kingsoft Cloud Raises Xiaomi Transaction Caps and Extends Cooperation Frameworks
Apr 24, 2026
Kingsoft Cloud said it is revising the annual caps on cloud services it provides to Xiaomi under a 2024 framework agreement covering January 1, 2025 to December 31, 2027. The adjustment, driven by faster-than-expected business growth and rising de...
Kingsoft Cloud Files Form 6-K, Releases 2025 Annual and ESG Reports
Apr 23, 2026
On April 23, 2026, Kingsoft Cloud Holdings Limited filed a Form 6-K with the U.S. Securities and Exchange Commission as a foreign private issuer. The filing indicates the company continues to report under Form 20-F, underscoring its ongoing compli...
Kingsoft Cloud Files 2025 Annual Reports and Unveils New ESG Strategy
Apr 23, 2026
On April 23, 2026, Kingsoft Cloud Holdings filed its annual report on Form 20‑F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission and simultaneously released its Hong Kong annual report. The filings...
Kingsoft Cloud Reports Stable Share Capital and Public Float in March 2026 Hong Kong Filing
Apr 9, 2026
On April 9, 2026, Kingsoft Cloud reported to the Hong Kong Stock Exchange that its authorised share capital remained unchanged in March 2026 at 40 billion ordinary shares with a par value of US$0.001 each, amounting to US$40 million. The company a...
Kingsoft Cloud Narrows 2025 Losses as Revenue Jumps and Governance Overhaul Proposed
Mar 25, 2026
Kingsoft Cloud released its unaudited preliminary results for the year ended December 31, 2025, showing revenue rising 22.8% year-on-year to RMB 9.56 billion while gross profit increased 12.1% to RMB 1.50 billion. The company significantly narrowe...
Kingsoft Cloud Posts Strong 2025 AI-Driven Growth and Higher Margins Despite Net Loss
Mar 25, 2026
Kingsoft Cloud reported unaudited results for the fourth quarter and fiscal year ended December 31, 2025, highlighting rapid AI-led growth and improving profitability metrics. The company’s AI business gross billing grew 95% year over year i...
Kingsoft Cloud Reports No Share Capital Changes in February 2026 Filing
Mar 5, 2026
Kingsoft Cloud Holdings disclosed that its authorized share capital and issued share count remained unchanged in February 2026, according to a monthly return filed with the Hong Kong Stock Exchange and furnished to the U.S. Securities and Exchange...
Kingsoft Cloud Raises Caps on Connected Property and Lease Deals for 2026–2027
Mar 2, 2026
On March 2, 2026, Kingsoft Cloud announced it had revised the annual caps for certain continuing connected transactions under its 2024 Kingsoft Framework Agreement with its major shareholder Kingsoft Corporation. The changes, driven by higher futu...
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.