Morgan Stanley says Kingsoft Office's Q2 2026 growth may ease AI concerns, but valuation remains a risk
Morgan Stanley said Kingsoft Office's Q2 2026 revenue is expected to rise 18% to 33% year over year to 1.6 billion to 1.8 billion yuan, with WPS 2C and WPS 365 as the main drivers.
Morgan Stanley said Kingsoft Office's Q2 2026 revenue is expected to rise 18% to 33% year over year to 1.6 billion to 1.8 billion yuan, with WPS 2C and WPS 365 as the main drivers. The firm also expects adjusted profit to increase 3% to 45%.
The bank said stronger growth should ease some concerns about AI disruption, but the stock still screens as expensive at 63 times and 46 times expected 2026 and 2027 earnings. It cited AI penetration, monetization progress and changes in competition, especially in online collaboration, as catalysts to watch.
The bank said stronger growth should ease some concerns about AI disruption, but the stock still screens as expensive at 63 times and 46 times expected 2026 and 2027 earnings. It cited AI penetration, monetization progress and changes in competition, especially in online collaboration, as catalysts to watch.