Kingsoft Corporation Limited (HKEx: 03888) reported a 284% year-over-year increase in profit attributable to owners of the parent for the first quarter of 2026, reaching RMB1.09 billion. The company's total revenue rose 3% to RMB2.42 billion, driven by strong performance in its office software and services segment, which grew 24% to RMB1.61 billion. This growth was partly offset by a 22% decline in online games and other revenue, which fell to RMB803.5 million.
The office software division, operated by Kingsoft Office Group, continued to benefit from its strategic focus on AI, collaboration, and internationalization. Enhanced AI features in WPS Office drove increases in monthly active users, conversion rates, and average revenue per paying user. The WPS 365 business expanded its customer base among private and state-owned enterprises, while the WPS software business saw growing demand for localization, with government AI products rolling out across departments.
In the online games segment, Kingsoft attributed the revenue decline to decreased contributions from existing titles, though new games like Goose Goose Duck helped offset some losses. Released in January, Goose Goose Duck focused on growing its user base and remains in early monetization. The flagship MMORPG JX3 Online maintained stable active users, with new content updates including an expansion pack in April. The company is investing in R&D to enhance game quality and consolidate its core user ecosystem.
Chairman Jun Lei emphasized that Kingsoft Office Group would continue to deepen AI capabilities, focusing on Agent product implementation and empowering intelligent office scenarios through WPS 365. The online games business will strengthen R&D investment in core games and leverage AI for content creation. CEO Tao Zou noted that the group's strategic priorities remain centered on technology empowerment and long-term operational excellence.
Kingsoft's gross profit for the quarter increased 1% to RMB1.93 billion. Operating profit was RMB395.3 million, down from RMB601.5 million a year earlier, reflecting higher investments in AI and game development. Basic earnings per share stood at RMB0.79, compared to RMB0.21 in the first quarter of 2025.
The company's results underscore the growing importance of AI in driving revenue growth, particularly in the office software space. As Kingsoft continues to integrate AI across its product lines, it aims to sustain momentum in both domestic and international markets. For more details, refer to the full release at http://www.kingsoft.com.