Kingsoft Corporation Limited (HKEx: 03888) announced its unaudited first-quarter results for 2026, reporting a dramatic 284% year-on-year increase in profit attributable to owners of the parent, reaching RMB 1,091.3 million. The surge was primarily driven by a 24% rise in revenue from its office software and services segment, which now accounts for 67% of total revenue.
Total revenue for the three months ended March 31, 2026, grew 3% year-on-year to RMB 2,416.7 million, with office software and services contributing RMB 1,613.2 million. Online games and other businesses generated RMB 803.5 million, a 22% decline due to decreased revenue from existing games, partly offset by contributions from new titles like Goose Goose Duck, which launched in January and is still in early monetization.
Chairman Jun LEI attributed the performance to the company's strategic focus on technology empowerment. “Kingsoft Office Group continued to deepen its core strategy of ‘AI, Collaboration, and Internationalization,’ and steadily advanced the implementation of AI service capabilities across office scenarios,” Lei said. The enhanced AI features in WPS products effectively drove growth in monthly active users, conversion rates, and average revenue per paying user.
In the WPS 365 segment, the company upgraded AI and collaboration capabilities, expanding coverage among private and local state-owned enterprises while increasing orders from large-scale customers. For the WPS software business, growing demand for localization led to refined government AI products being rolled out across departments, supporting customers' digital and intelligent transformation.
In the online games division, 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. The flagship version completed graphics quality optimization and advanced gameplay iteration, with ongoing dual-platform technology upgrades. The classic JX series of PC games continued long-term operations with content innovation to enhance IP vitality. Goose Goose Duck performed well domestically, with localized content and social gameplay expanding its user base and driving steady gross receipt growth.
Looking ahead, Lei stated that Kingsoft Office Group will further deepen its AI capabilities, focus on Agent product implementation, empower intelligent office through WPS 365, and advance international expansion. The online games business will strengthen R&D investment in core games and leverage AI to enhance content creation, aiming to provide a high-quality gaming experience.
The results underscore the growing importance of AI in driving revenue and profitability for technology firms, particularly in office software. For the industry, Kingsoft's success highlights how integrating AI can boost user engagement and monetization in mature product categories. For investors, the profit surge signals strong operational leverage and the potential for sustained growth as AI adoption scales. The company's emphasis on AI-powered office and gaming could set a benchmark for competitors in China's software and internet services market.
