Shares of KE Holdings Inc (BEKE-W) advanced more than 3% on Thursday, trading at HK$46.88 with turnover reaching HK$472 million at the time of writing, as investors cheered the company's better-than-expected adjusted profit for the second quarter of 2026.

The company reported net revenue of RMB 24.5 billion for the quarter, alongside an adjusted operating profit of RMB 3.59 billion. Adjusted net profit surged 74.9% year-over-year to RMB 3.185 billion, with the adjusted operating margin expanding by 8.5 percentage points to 14.6%.

On the operational front, second-hand home transaction volume on the platform grew 25% year-over-year. The company's overall gross transaction value reached RMB 933.8 billion, up 6.3% from a year ago, marking the first positive growth in twelve months.

Analysts remain bullish on the stock's prospects. Industrial Securities highlighted that the company, as a market leader with strong alpha characteristics, possesses sustainable operational efficiency improvements that could unlock earnings potential during the industry's beta phase, maintaining a "Buy" rating.

Morgan Stanley echoed this sentiment, stating that the company's continued market share gains, combined with robust second-quarter results, demonstrate its improving operational efficiency and ability to outperform market benchmarks, which could translate into long-term sustainable benefits. The investment bank maintained its "Overweight" rating on the stock.