Kingsoft Reports 284% Profit Surge in Q1 2026 Driven by AI-Powered Office Growth
Kingsoft's first-quarter profit soared 284% year-on-year to RMB1.09 billion, fueled by a 24% revenue jump in its office software segment as AI capabilities boosted user engagement and conversion rates.
Kingsoft Corporation Limited (HKEx: 03888) announced its unaudited first-quarter results for the three months ended March 31, 2026, revealing a 284% year-on-year surge in profit attributable to owners of the parent, reaching RMB1.09 billion. The company's total revenue increased 3% year-on-year to RMB2.42 billion, driven primarily by strong performance in its office software and services division, which grew 24% to RMB1.61 billion.
The results underscore Kingsoft's strategic pivot toward artificial intelligence and collaboration tools. Chairman Jun Lei highlighted the company's commitment to technology empowerment, stating that Kingsoft Office Group continued to deepen its core strategy of 'AI, Collaboration, and Internationalization,' steadily advancing AI service capabilities across office scenarios. The company's WPS individual business saw AI features drive growth in monthly active users, conversion rates, and average revenue per paying user. WPS 365 business expanded its coverage among private and local state-owned enterprises, with increasing orders from large-scale customers. Additionally, the WPS software business benefited from rising localization demand, as government AI products were refined and rolled out across departments.
The online games segment, however, faced headwinds, with revenue declining 22% year-on-year to RMB803.5 million, primarily due to decreased revenue from existing games. CEO Tao Zou noted that after its January release, Goose Goose Duck has focused on growing its user base and remains in the early monetization stage. The company's flagship JX3 Online maintained a stable active user base, with innovative in-game events during the Spring Festival and Lantern Festival, and an expansion pack released in April. Kingsoft continues to invest in R&D for core games, enhancing quality and leveraging AI for content creation.
During the quarter, gross profit increased 1% to RMB1.93 billion, while operating profit declined to RMB395.3 million from RMB601.5 million in the same period last year. Basic earnings per share rose to RMB0.79 from RMB0.21. The office software and services segment contributed 67% of total revenue, while online games and others accounted for 33%.
Looking ahead, Lei stated that Kingsoft Office Group will continue to deepen its AI capabilities layout, focus on Agent product implementation, and empower intelligent office scenarios through WPS 365, while advancing international expansion. The online games business will strengthen R&D investment in core games and leverage AI to enhance content creation. The company's strategic emphasis on AI and collaboration positions it to capture growth in both domestic and international markets, as enterprises increasingly seek digital transformation solutions.
For more details, refer to Kingsoft's website.