Kingsoft Cloud Hits Record Revenue as AI Demand Drives Profitability

The company’s shift toward high-quality growth appears to be yielding results, as adjusted operating profit margins reached 4.0%. CEO Tao Zou credited this performance to improved operational efficiency and a successful pivot toward Model-as-a-Service offerings. Public cloud services remained the primary engine for this expansion, generating RMB2.36 billion—a 45.1% increase compared to the same period last year.

While public cloud growth accelerated, enterprise cloud services remained largely flat, recording a marginal 1.3% dip year-over-year. To sustain its competitive edge in the AI sector, Kingsoft Cloud ramped up capital expenditure to RMB3.3 billion during the quarter. This investment, directed primarily at computing power and infrastructure, contributed to a rise in depreciation and amortization costs. Despite these outlays, the company successfully narrowed its net loss to RMB93 million, a significant improvement from the RMB456.9 million loss reported in the second quarter of 2025.