Kingsoft Corporation Limited (HKEx: 03888) reported a 284% year-on-year increase in profit attributable to owners of the parent for the first quarter of 2026, reaching RMB 1,091.3 million, according to unaudited results released on May 28. The surge was driven primarily by the office software and services segment, which saw revenue climb 24% to RMB 1,613.2 million, as artificial intelligence features deepened user engagement and monetization.
Overall revenue for the three months ended March 31, 2026, rose 3% year-on-year to RMB 2,416.7 million. The office software and services unit accounted for 67% of total revenue, while online games and others contributed 33%. Gross profit edged up 1% to RMB 1,929.9 million. The company's basic earnings per share jumped to RMB 0.79 from RMB 0.21 a year earlier.
Chairman Jun Lei attributed the results to a 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," he said in the announcement.
The strong performance in office software was underpinned by growth across all three principal businesses of Kingsoft Office Group. For the WPS individual business, ongoing upgrades to AI products drove increases in WPS AI monthly active users, conversion rates, and average revenue per paying user. The WPS 365 business expanded its coverage among private enterprises and local state-owned enterprises, with large-scale customer orders rising. Meanwhile, the WPS software business benefited from growing demand for localization, as government AI products were refined and rolled out across departments, supporting customers' digital and intelligent transformation.
In contrast, the online games and other businesses segment posted revenue of RMB 803.5 million, a 22% decline year-on-year, primarily due to decreased revenue from existing games. The newly launched title Goose Goose Duck, released in January, is still in early monetization stages as it focuses on expanding its user base. CEO Tao Zou noted that the company is "focused on premium games and long-term operations, increased investment in existing core games, and actively expanded into new games."
Among the company's key game properties, JX3 Online maintained a stable active user base, with innovative in-game events launched during the Spring Festival and Lantern Festival. An expansion pack was released in April, while the flagship version completed graphics quality optimization and advanced gameplay iteration. The classic JX series of PC games continued long-term operations with ongoing content innovation. The company plans to increase R&D investment and enhance game quality to consolidate its core user ecosystem.
Looking ahead, Kingsoft intends to further deepen its AI capabilities, focusing on Agent products and empowering intelligent office scenarios through WPS 365, while advancing international expansion. For online games, the company will strengthen R&D investment in core titles and leverage AI to enhance content creation. "We will continue to increase R&D investment, enhance game quality, and further consolidate our core user ecosystem," Lei added.
Kingsoft, listed on the Hong Kong Stock Exchange, operates through subsidiaries including Kingsoft Office, Seasun Holdings, and Kingsoft Shiyou. The company employs nearly 9,000 people worldwide and holds significant market share in China's software and internet services sector. More information is available at http://www.kingsoft.com.
