KE Holdings sees sharp revenue and transaction declines; recovery not expected before 2027

KE Holdings reported weak Q4 results with net revenues down 28.7% year-over-year and gross transaction volume dropping 36.7%, leading to a negative EBIT margin. The company faces ongoing pressure in its core real estate business, with no recovery expected before 2027 according to management's neutral market outlook for 2026. While KE Holdings is diversifying into rental services and AI-driven workflow improvements, these efforts are currently insufficient to offset the decline in its main operations. Investors should remain cautious as near-term growth and re-rating potential remain limited.