By Jason Chau

Kuaishou Technology is scheduled to report its first-quarter results on Wednesday. Here's what you need to know:

NET PROFIT FORECAST: Kuaishou's net profit for the first three months of the year likely slid 32% on year to 3.13 billion yuan, equivalent to $460.4 million, according to a poll of 20 analysts by VisibleAlpha.

REVENUE FORECAST: First-quarter revenue is expected to have risen 2.5% to 33.43 billion yuan, according to VisibleAlpha.

Kuaishou's shares have fallen more than 28% so far this year, marking a sharp reversal from last year, when the stock gained nearly 55%. There is rising market concern around intense competition in China's internet sector, which could seriously weigh on the company's free cash flow and revenue growth.

WHAT TO WATCH:

--CORE BUSINESS: A point to watch is whether sales growth on Kuaishou's e-commerce platform has slowed following tax policy changes introduced late last year and amid broader macroeconomic headwinds, Citi analysts said. Meanwhile, the company's efforts to drive traffic to merchants, along with its Brazil operations, may crimp advertising revenue, Citi said.

--KLING AI: Kuaishou is ramping up investments in its AI video and image generator, Kling, which Citi analysts expect to weigh on both first-quarter and full-year earnings. Investors will be closely watching whether the next version of Kling can drive stronger monetization, after the April launch of a 4K video generation feature wasn't seen as a major upgrade, Citi said.

--SPINOFF: Investors will also focus on any update to plans to restructure Kling, which could involve a spinoff and listing in Hong Kong at a potential valuation of $20 billion. However, Morningstar said that while the rationale for a spinoff is sound as it would relieve pressure on earnings, the possible valuation figure appears stretched.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

May 26, 2026 05:19 ET (09:19 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.