On 19 August, Kuaishou Technology released its second-quarter 2026 results. Revenue reached RMB 35.54 billion, up 1.4 per cent year on year, while profit for the period was RMB 3.15 billion, down 36 per cent. For the first half, revenue totalled RMB 69.25 billion, up 2.4 per cent, though profit fell 32 per cent.
By business mix, Kuaishou’s traditional businesses remain under pressure, but AI is becoming a new growth engine. Kling AI stood out commercially, with Q2 revenue above RMB 850 million, up more than 200 per cent year on year. The AI transition is still in its investment phase: Q2 R&D expense reached RMB 4.58 billion, up 34.7 per cent, mainly on AI-related spend including model training, while gross margin slipped from 55.7 per cent a year earlier to 51.6 per cent.
AI has opened a new growth story, but whether it can carry Kuaishou’s next phase of growth still needs time to prove.
Editor’s note: This is an adapted translation of the original Sohu report. It has been trimmed and restructured for readability for an international business audience.