Kuaishou Earnings Preview: Shares Down Over 36% — Can the Earnings Report Turn Things Around?
Kuaishou is set to release its second-quarter earnings report after the Hong Kong market closes on August 19. According to analyst estimates, Kuaishou’s Q2 2026 revenue is expected to reach RMB 35.506 billion, while adjusted EPS is estimated at RMB 0.89.
Since the beginning of the year, Kuaishou’s stock has fallen by around 36%, reaching historically low levels and significantly underperforming the Hang Seng Index, which has declined by approximately 0.4% over the same period.
Kuaishou’s revenue is mainly generated from three segments: online marketing services, live streaming, and other services. Online marketing is its largest revenue source, but growth has continued to slow, with its revenue declining in Q1. Live streaming has also been on a downward trend, with analysts expecting Q2 live streaming revenue to decline 13.97% year over year.
Analysts expect net income to decline by around 30% as AI spending continues to rise, putting pressure on margins and cash flow. They view Kuaishou’s shift toward the lower-margin AI business as a high-risk, costly endeavor and remain cautious about its ability to generate sustainable long-term returns.
The market will pay attention to Kling AI’s revenue trajectory following its recent $2.8 billion financing, as well as management’s comments on the new shareholder structure after Tencent significantly reduced its stake to below 10%. $KUAISHOU-W(01024)$ $KUAISHOU-WR(81024)$
From a valuation perspective, Kuaishou’s price-to-sales (P/S) ratio stands at 1.03, near its lowest level over the past five years.
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