Beijing Kingsoft Office Software, Inc. anticipates a more than fourfold increase in first-quarter net profit attributable to shareholders, propelled by investment income and artificial intelligence (AI) advancements.
On the evening of April 13, the company released a preliminary earnings forecast indicating that revenue for the first quarter of 2026 is expected to be between 1.565 billion yuan and 1.662 billion yuan, representing a year-on-year growth of 20% to 28%. Net profit attributable to shareholders is projected to reach 2.022 billion yuan to 2.307 billion yuan, an increase of 1.619 billion yuan to 1.905 billion yuan compared to the same period last year, surging by 402% to 473%. Adjusted net profit is estimated to rise by 1.610 billion yuan to 1.892 billion yuan, up 413% to 485% year-on-year.
On April 14, shares of Beijing Kingsoft Office Software, Inc. opened sharply higher, at one point climbing over 11%. At the time of writing, the stock was up more than 6%. The company is scheduled to officially announce its first-quarter financial report on April 24.
According to the announcement, during the reporting period, certain external investment fund projects generated substantial investment gains, contributing significantly to the overall net profit growth. Excluding the impact of these investment gains, the company's net profit attributable to shareholders for the quarter would have been 487 million yuan to 544 million yuan, an increase of 21% to 35% year-on-year. Adjusted net profit would have been 465 million yuan to 519 million yuan, up 19% to 33% year-on-year.
The company stated that in the first quarter of 2026, it continued to focus on its three core strategies—AI, collaboration, and internationalization—steadily advancing the implementation of AI services across all scenarios. Overall operations maintained a stable and positive trend. Previous R&D investments in AI and collaboration began to yield results, combined with improved operational efficiency, leading to growth across all three core business segments and continuous optimization of profit quality.
By business segment, WPS individual business, supported by ongoing AI feature upgrades, demonstrated resilience in its paying user base, with revenue showing steady growth. The WPS 365 business, upgraded with comprehensive AI capabilities, exhibited strong growth momentum in the enterprise sector, with significant order volume from major clients driving rapid revenue expansion. The WPS software business benefited from sustained demand related to domestic IT infrastructure replacement and the implementation of customized AI solutions in government scenarios, resulting in fast revenue growth.
In March, the company's full-year 2025 financial report revealed annual revenue of 5.929 billion yuan, a 16% year-on-year increase. Net profit attributable to shareholders was 1.836 billion yuan, up 12% year-on-year, while adjusted net profit rose 16% to 1.803 billion yuan, indicating continued improvement in profitability.
Within its main businesses, WPS individual business revenue reached 3.626 billion yuan, growing 10% year-on-year. Revenue from the organizational-focused WPS 365 business surged 65% to 720 million yuan. WPS software business revenue increased 15% to 1.461 billion yuan. Annual R&D expenditure totaled 2.095 billion yuan, a 24% year-on-year increase.
Comments