Kingsoft Cloud Q2 revenue jumps 31%, AI services surge 82% with Xiaomi partnership

Kingsoft Cloud Holdings reported a strong Q2 2026 with revenues up 30.8% year-over-year and improved profit margins, reversing a weak Q1. Its AI cloud services, boosted by a partnership with Xiaomi, saw gross billings rise 82% year-over-year, making AI the main growth driver. Operating cash flow reached $420 million, supporting manageable debt and pushing the company close to break-even profitability. The outlook remains cautious with a neutral rating as the company seeks sustained profitability and monitors client concentration risks related to Xiaomi.