On August 4 during trading hours, Kingsoft Cloud rose more than 7%. As of the time of writing, it was trading at HK$6.49, with a turnover of HK$394 million.
On the news front, Amazon's cloud business posted growth exceeding expectations, lifting the broader cloud computing sector. GF Securities issued a research report forecasting Kingsoft Cloud’s revenue for Q2 FY26 to reach RMB 3.04 billion, an increase of 29% year-over-year and 12% quarter-over-quarter, primarily driven by growth in AI public cloud services. The report forecasts adjusted gross margin to improve by 1.8 percentage points quarter-over-quarter to 14.6%, supported by cluster deliveries driving margin recovery. It also forecasts slightly positive adjusted operating profit (OP) for Q2 FY26 and an adjusted EBITDA margin of 34%.
Institutional analysts expect that current AI computing demand remains robust while supply is tight. Kingsoft Cloud has a strong backlog of orders and is projected to achieve year-over-year revenue growth of 35% and 34% in 2026 and 2027, respectively, with its AI public cloud business growing by 83% and 65% over the same periods. The company benefits from highly visible and strong demand, driven by increased AI investments from Xiaomi and Kingsoft, rising inference demand from internet clients, and robust training demand from customers in embodied intelligence and intelligent driving.
Edited by Joryn