Kingsoft Cloud Q1 Revenue Jumps 37.2% to RMB2.7B with AI Billing Up 90%
KC•Kingsoft Cloud posted Q1 revenue of RMB2,703.7 million, up 37.2% year-over-year, driven by a 90% surge in AI gross billing which now comprises over half of public cloud revenue. Adjusted EBITDA margin climbed 11.4 percentage points to 27.6%, with adjusted gross profit of RMB351.4 million and RMB3 billion capital investments.
1. Top-line and Revenue Breakdown
Kingsoft Cloud’s total Q1 revenue reached RMB2,703.7 million, up 37.2% year-over-year but down 2.1% sequentially. Public cloud services generated RMB1,996.3 million, a 47.5% annual increase, while enterprise cloud contributed RMB707.4 million, up 14.7% year-over-year but down 17.6% from the prior quarter due to seasonality.
2. AI Business Surge
AI gross billing surged 90% year-over-year, exceeding RMB1,000 million and accounting for over 50% of public cloud revenue for the first time. This reflects deeper penetration with Xiaomi, Kingsoft Ecosystem clients and new AI-focused enterprise customers.
3. Profitability and Margin Analysis
Non-GAAP gross profit rose 7.2% to RMB351.4 million, but gross margin fell to 12.8% from 16.2% a year earlier due to higher AI-related server costs. Adjusted EBITDA margin improved by 11.4 percentage points to 27.6%, driven by operational leverage and cost controls.
4. Infrastructure Investments
Capital expenditures and leased assets combined totaled RMB3.0 billion in Q1, funding new server and network deployments for AI computing. Management plans continued infrastructure investment throughout 2026 to support scaling of cloud and vertical solutions.
