Kingsoft Cloud Holdings Limited (KC) AI Stock Analysis

Established in 2012 and headquartered in Beijing, Kingsoft Cloud Holdings Limited delivers cloud services tailored for organizations and businesses throughout China. The company's portfolio features public cloud services built for sectors such as gaming, video streaming, artificial intelligence (AI), e-commerce, education, and mobile internet, providing scalable infrastructure for high-volume online operations. Additionally, Kingsoft Cloud delivers specialized enterprise cloud solutions targeting financial services, public sector entities, and healthcare providers. These tailored deployments provide secure, compliant, and reliable environments designed to streamline operational workflows and accelerate digital transformation.

Kingsoft Cloud saw revenue drop from $9.06B in FY2021 to $7.05B in FY2023, before rebounding with 10.5% growth to $7.79B in FY2024 and 22.8% growth to $9.56B in FY2025. Over the five years from FY2020 to FY2025, revenue achieved a compound annual growth rate of 7.8%. Gross margin improved from 3.9% in FY2021 to 15.7% in FY2025, while operating margin narrowed its losses from -19.0% to -5.5%. Annual net income improved from -$1.59B in FY2021 to -$936.3M in FY2025. In the latest quarter ending June 30, 2026, revenue increased 30.8% year-over-year, bringing trailing twelve months revenue to $11.02B with an operating margin of 0.8% and an EPS of -$0.28.

As of June 30, 2026, Kingsoft Cloud held $4.73B in cash and short-term investments against total debt of $6.86B, resulting in net debt of $2.13B. Shareholders' equity stood at $8.90B out of $30.71B in total assets, yielding a debt-to-equity ratio of 0.77 and a current ratio of 1.01. Operating cash flow improved significantly to $3.80B in FY2025, up from $628.4M in FY2024. Capital expenditures totaled $4.74B in FY2025, leaving free cash flow at -$941.3M. The company's share count increased 23.4% over five years.

At a share price of $8.47, Kingsoft Cloud carries a market cap of $2.54B and an enterprise value of $3.26B. The stock trades at a price-to-sales multiple of 0.2x, which is below the 2.8x median of its US-listed Technology peers. Its enterprise value-to-revenue stands at 2.0x, alongside a price-to-book ratio of 2.2x. Over the past year, Kingsoft Cloud's shares fell 34.6%, underperforming the S&P 500 (SPY), which gained 16.8%. Over a five-year span, the stock fell 70.4% compared to an 83.0% gain for the S&P 500.

Wall Street analysts hold 11 Strong Buy and 3 Buy recommendations for Kingsoft Cloud, with no Hold, Sell, or Strong Sell ratings. The mean price target is $20.26, representing a 139.2% premium over the last close of $8.47. Consensus projections forecast an EPS of -$1.11 on $12.69B in revenue for the fiscal year ending December 31, 2026. For the next fiscal year, 8 analysts project an EPS of -$0.16 and revenue of $16.20B. Kingsoft Cloud beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 18, 2026.

This page is an AI-written research summary of Kingsoft Cloud Holdings Limited (KC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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