Dell Technologies shares are retreating from recent levels. Why is DELL stock falling? Macro Pressures And Tech De-RiskingAnxiety is hitting the market ahead of Wednesday’s May CPI report. Following April’s hot 3.8% year-over-year print, another elevated reading could further delay Federal Reserve rate cuts, a backdrop that historically pressures high-beta growth stocks like Dell by keeping borrowing costs higher for longer.
Compounding this anxiety is a fresh geopolitical flashpoint. After a U.S. helicopter was shot down over the Strait of Hormuz, President Trump’s threats of retaliation stoked fears of an energy supply disruption. A resulting spike in oil prices would feed directly back into sticky inflation and further complicate the Fed’s monetary policy.
Profit-Taking And Sector RotationBecause Dell shares have enjoyed a massive run over the past year, the stock has been trading at a steep premium relative to its longer-term moving averages. This extended valuation leaves it highly sensitive to fast de-risking, prompting aggressive profit-taking as the Nasdaq leads the market downward.
Critical Price Levels To Watch For DELLFrom a structure standpoint, the bullish moving-average stack is intact, with the 20-day SMA above the 50-day SMA and the golden cross that triggered in March (50-day SMA moving above the 200-day SMA) still in force. The recent swing low in March and swing high in June frame the current range, and the 52-week high was also set in June—so traders are watching whether this dip is just a reset from that peak or the start of a deeper mean reversion.
Momentum also leans constructive: MACD is above its signal line and the histogram is positive, which points to improving momentum versus the prior downswing even if price is choppy day to day. In plain English, when MACD is above its signal line, it suggests downside pressure is easing and buyers are starting to regain control.
Given where price sits, the first "line in the sand" for trend traders is whether the stock can hold above its faster trend gauges on any follow-through selling. A cleaner pullback toward the 20-day area would still be consistent with an uptrend, while a break that starts closing the gap toward the 50-day would signal a more meaningful cooling phase.
Key Resistance: $469.47 — the 52-week high from June is the obvious overhead ceiling after the recent peak Key Support: $318.59 — the 20-day SMA is the nearest widely watched trend level after the stock's extended run Dell Technologies Benzinga Edge Rankings ExplainedBelow is the Benzinga Edge scorecard for Dell Technologies, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Dell Technologies’s Benzinga Edge signal reveals a momentum-driven profile, where trend strength is the main pillar even as valuation screens weak. For longer-term bulls, that typically means risk management matters most around trend supports (like the 20-day area), because momentum names can reprice quickly when the Nasdaq is sliding.
DELL Stock Price Action UpdateDELL Stock Price Activity: Dell Technologies shares were down 5.90% at $377.11 at the time of publication on Tuesday, according to Benzinga Pro data.
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Key Takeaways MU gains from rising AI memory demand, with strong HBM3E and HBM4 adoption across AI systems.MU forecasts fiscal Q3 2026 revenues of about $35.5 billion and adjusted EPS of $19.15.DELL posted a 757% jump in AI server sales and expects fiscal 2027 revenues of up to $169 billion. The artificial intelligence (AI) infrastructure trade has shifted from pure-play semiconductors to other AI-powered data center infrastructures. This includes AI-powered memory and storage devices as well as servers and racks, photonics and optical network manufacturers, electrical grid equipment, advanced cooling systems, and specialized semiconductor packaging to name a few.
Moreover, agentic AI is expanding the scope of AI infrastructure providers in the physical layer across industries. As a result, the generative AI-based graphical processing unit (GPU) developer NVIDIA Corp. (NVDA - Free Report) , which was the poster boy of AI trade in the past four years, lost some of its charm in 2026.
Instead, investor’s focus has shifted to those companies that develops the above-mentioned AI-powered data center infrastructure products. Here, we recommend two such stocks that have skyrocketed this year with more than 200% returns. Yet, their solid outlook and current Zacks top rank indicate more firepower in the future.
The companies are: Micron Technology Inc. (MU - Free Report) and Dell Technologies Inc. (DELL - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of the three stocks mentioned above year to date.
Image Source: Zacks Investment Research
Micron Technology Inc.Micron has been benefiting tremendously from the enormous application of AI in day-to-day life, which has pushed up the demand for memory chips. The four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027.
This has resulted in more AI semiconductor sales implying the need for multiple AI memory chips to operate. Flash memory technologies like DRAM and NAND are used in AI chips, enabling them to perform optimally.
This has pushed up the demand for AI-enabled memory chips. In their last earnings reports, all four major hyperscalers highlighted a shortage of memory and storage chips, resulting in soaring prices of these products. As a result, MU benefits significantly.
New Tech Trends to Drive MU’s ProspectsMicron has meaningful exposure to AI, cloud data centers, industrial IoT and autonomous vehicles, all of which require increasingly advanced memory solutions. As AI adoption accelerates, demand for DRAM and NAND products continues to rise.
MU has invested heavily in next-generation memory technologies, positioning itself to meet the growing performance and efficiency requirements of AI systems. A particularly important growth driver is high-bandwidth memory (“HBM”), which has become essential for advanced AI workloads. Micron Technology’s HBM3E and HBM4 products are seeing exceptionally strong demand because they offer the speed and efficiency required by modern AI systems.
MU’s position in the AI ecosystem continues to strengthen. NVIDIA identified Micron as a key HBM supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing its importance within the AI supply chain. Demand for HBM4 is also benefiting from next-generation AI infrastructure deployments, including NVIDIA’s Vera Rubin platform.
Strong Guidance Micron anticipates revenues of $35.5 billion (+/-$750 million) in the fiscal third quarter of 2026. MU projects a non-GAAP gross margin of approximately 81%. Operating expenses on a non-GAAP basis are estimated to be approximately $1.4 billion. Adjusted EPS is anticipated to be $19.15 (+/- 40 cents).
Solid Estimate Revisions & Attractive ValuationMicron Technology has an expected revenue and earnings growth rate of more than 100% each, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last seven days.
Despite a robust rally, the MU stock still looks attractive. It trades at a forward 12-month price-to-earnings (P/E) multiple of 15.87, which is significantly lower than the industry average of 27.05. This discount adds to the appeal for long-term investors.
Image Source: Zacks Investment Research
Dell Technologies Inc.Dell reported blockbuster results for the first quarter of fiscal 2027 primarily driven by a stunning 757% increase in server sales powered by AI chips. In May 2026, FORTUNE BUSINESS INSIGHTS estimated that “the global AI server market size was valued at $194.62 billion in 2025.
The market is projected to grow from $262.22 billion in 2026 to $2,847.32 billion by 2034, exhibiting a CAGR of 34.73% during the forecast period.” The astonishing growth potential of the global AI-optimized server market is noteworthy.
Innovative ProductsDell Technologies is benefiting from strong demand for AI-optimized servers driven by the ongoing digital transformation and heightened interest in generative AI applications. Its PowerEdge XE9680 AI-optimized server is much in demand.
DELL’s advanced AI-optimized servers including the PowerEdge XE9780 and 9780L platforms supporting up to 256 NVIDIA HGX B300 GPUs per rack, the XE9712 with NVIDIA GB300 NVL72, and the XE7745 supporting NVIDIA RTX Pro 6000 Blackwell GPUs, are noteworthy.
In fiscal fourth-quarter 2026, DELL launched the PowerEdge XE9712 supporting NVIDIA's NVL72 GB200. It launched the Dell Infrastructure Rack Sobel system, IR7000 and 5000 in both 21-inch and 19-inch versions, providing up to 96 GPUs in a rack and 786 GPUs in a scalable unit. The strong demand trend bodes well for the company’s long-term prospects.
Strong Guidance For the second quarter of fiscal 2027, DELL expects revenues between $44 billion and $45 billion, with non-GAAP earnings of $4.80 (plus or minus 10 cents). For fiscal 2027, Dell Technologies expects revenues between $165 billion and $169 billion and guided to non-GAAP earnings of $17.90 per share (+/- 25 cents).
Solid Estimate Revisions & Reasonable ValuationDell Technology has an expected revenue and earnings growth rate of 47.4% and 39.5%, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 12% over the last 30 days.
Despite a robust rally, the DELL stock still looks reasonably priced. It trades at a forward 12-month price-to-earnings (P/E) multiple of 27.90, in line with the industry average.
Shares of Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) are down 13% to $35 and change in mid-morning trading Wednesday, while Dell Technologies (NYSE:DELL) stock is moving in the opposite direction, up 4% to around $396. The split marks a sharp break from Tuesday’s session, when both names fell together in a broad high-beta AI hardware selloff.
Super Micro Computer stock tumbled as much as 13% at the open, extending its Tuesday drop. Dell Technologies stock, by contrast, is acting as the relative safe haven inside the AI-server theme today.
Even with the latest move lower, SMCI stock is still up by around 20% year-to-date amid the AI server boom, and DELL stock is sitting on a 213% year-to-date gain. The divergence underscores how investors are rewarding scale and cash-flow strength over pure-play exposure in the current AI-server cycle.
$7 Billion Raise Sparks Dilution Worry at Super Micro The catalyst is company-specific. Super Micro Computer announced plans to raise approximately $7 billion through a combination of equity and equity-linked financing. Management said the capital will fund component purchases to fulfill roughly $39 billion in AI server orders it received in recent weeks.
The size of the backlog is a clear demand signal, but the structure of the capital raise is what investors are reacting to. The deal raises concerns about shareholder dilution and financial strain. Super Micro Computer already carries $8.8 billion in combined bank debt and convertible notes, and the recent Q3 FY2026 report showed revenue of $10.24 billion that missed the $12.45 billion consensus.
Reddit sentiment confirms the negative tone. Aggregate sentiment scores on SMCI stock sat at 27 on Tuesday evening and slid to 22 by Wednesday morning, both firmly in the bearish category, with the WallStreetBets community even more negative than r/stocks overall.
Dell Bucks the Trend as the Scale Winner Dell Technologies is running a different playbook. The most recent quarter indicated $43.84 billion in revenue, AI-optimized server revenue of $16.13 billion (up 757% year over year), and $24.4 billion in AI orders booked in Q1 FY2027.
The company also raised its FY27 guidance to $165 billion to $169 billion and lifted full-year AI server revenue expectations to about $60 billion. Analysts are leaning bullish: the consensus target on DELL stock sits at $475.76, with a Moderate Buy rating.
The contrast is what’s driving today’s rotation. Super Micro Computer is funding growth by issuing paper while Dell Technologies is funding it from operations and shareholder returns, including $2.1 billion returned to shareholders in Q1 FY2027.
An AI Capital Arms Race Super Micro Computer joins a wave of companies tapping markets for AI capacity. Alphabet (NASDAQ:GOOGL) recently announced an $80 billion equity raise, later upsized to $84.75 billion, and major AI-related IPOs are looming, including SpaceX, Anthropic, and OpenAI. The capital intensity of the buildout is becoming a defining feature of the trade.
That backdrop cuts both ways, though. It validates the demand story Super Micro Computer is leaning on, but it also reminds investors that smaller, more leveraged suppliers face tougher financing math than hyperscale-tethered peers like Dell Technologies.
What to Watch Investors can watch for whether Super Micro Computer stock stabilizes once pricing terms on the $7 billion raise are disclosed, since that’s when dilution math gets concrete. For Dell Technologies, the next scheduled catalyst is the Q2 FY2027 report, with the company already guiding to $44 billion to $45 billion in revenue.
Both stocks remain high-beta names tied to the same AI infrastructure cycle, and today’s split could narrow quickly if sector sentiment shifts. Position sizing and risk tolerance can guide how investors approach SMCI and DELL now.
Dell Technologies (DELL - Free Report) closed the last trading session at $381.78, gaining 59.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $485.95 indicates a 27.3% upside potential.
The mean estimate comprises 21 short-term price targets with a standard deviation of $78.6. While the lowest estimate of $290.00 indicates a 24% decline from the current price level, the most optimistic analyst expects the stock to surge 83.4% to reach $700.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for DELL, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in DELLThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, nine estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 48.3%.
Moreover, DELL currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much DELL could gain, the direction of price movement it implies does appear to be a good guide.
Patrick Moorhead says the AI buildout is still intact — and explains why now is the time to get in on the AI trade revealing the names he thinks are best positioned, including Dell, HP, Cisco, Qualcomm, Micron, and Intel.
Dell Technologies (NYSE:DELL | DELL Price Prediction) has been fundamentally reshaped over the past decade. Michael Dell took it private in 2013, used the $67 billion EMC acquisition in 2016 to pivot from PCs into enterprise storage and infrastructure, then relisted on the NYSE in December 2018. That leaves roughly seven and a half years of post-relisting price history as the usable public window.
The transformation that matters now happened in the last 18 months. Dell turned its server business into one of the dominant AI infrastructure platforms on the planet. AI-optimized server revenue hit $16.13 billion in Q1 FY27, up 757% year over year, with $24.4 billion in AI orders booked in a single quarter. Full-year FY27 guidance was raised to $165 to $169 billion in revenue, with AI servers alone expected to hit roughly $60 billion.
The $1,000 Math: A 19x Outcome at the Outer Edge 1-Year Return (June 2025 to June 2026)
Initial Investment: $1,000 Current Value: $3,394 Total Return: 239.44% S&P 500 (same period): $1,229 (22.91%) 5-Year Return (June 2021 to June 2026)
Initial Investment: $1,000 Current Value: $7,974 Total Return: 697.38% Annualized Return: ~51% S&P 500 (same period): $1,740 (73.99%) Since Relisting (December 2018 to June 2026)
Initial Investment: $1,000 Current Value: $19,624 Total Return: 1,862.39% Annualized Return: ~49% S&P 500 (same period): $3,062 (206.21%) Most of that return was earned recently. DELL traded around $112 a year ago and sits at $381.78 today, after touching $469.47 recently. The stock is also down 12.3% in the past week. Holding through 2022’s enterprise IT slump, when shares fell back near $35, was the actual price of admission. Timing mattered enormously here.
Would I Put $1,000 In Today? It Depends on Your Stomach I’d put $1,000 into Dell today if I believed AI infrastructure capex remains a multi-year buildout and Dell holds its share of hyperscaler and sovereign AI orders. The $43 billion AI backlog entering FY27, 213.82% operating income growth, and a forward P/E around 21 are not stretched given that trajectory.
I’d avoid it if I thought AI server demand is pulling forward orders that normalize in 2027. Gross margin compressed to 17.8% from 21.1%, GPU supply is still gated by NVIDIA, and shareholders’ equity is negative $1.4 billion. Silver Lake has also been unloading shares heavily into this rally.
My lean: cautiously constructive, but I would scale in rather than buy a full position after a 239% one-year run. The business is real. The entry point is demanding.
Key Takeaways Dell reported record ISG revenues of $29B, fueled by strong demand for AI and traditional servers.Dell booked $24.4B in AI orders and ended the quarter with a record $51.3B AI backlog.Dell expects about $60B in AI server revenues as cloud and AI infrastructure spending accelerates. Dell Technologies (DELL - Free Report) is benefiting strongly from the rapid expansion of cloud and AI infrastructure as enterprises, cloud providers and sovereign customers invest heavily in modernizing their data centers. During its first-quarter fiscal 2027, the company highlighted that demand for servers, storage and AI infrastructure continues to exceed supply.
In the first quarter of fiscal 2027, the company reported record Infrastructure Solutions Group (“ISG”) revenues of $29 billion, driven by strong demand for both AI and traditional servers. Dell booked $24.4 billion in AI orders during the quarter and ended with a record AI backlog of $51.3 billion. The company’s AI solutions customer base has grown beyond 5,000, including enterprises, neocloud providers and sovereign organizations. The Zacks Consensus Estimate projects revenues to increase 47.35% year over year in fiscal 2027.
Storage is another major beneficiary. Customers deploying AI and cloud workloads require large amounts of high-performance storage to manage and analyze data. Dell reported strong demand for its PowerStore, PowerMax, PowerScale and ObjectScale offerings, with unstructured data storage showing particularly strong momentum.
Dell expects strong growth as companies continue investing in AI, cloud and digital transformation. The company projects about $60 billion in AI server revenues this year, with demand still exceeding supply. Dell also sees agentic AI boosting demand for servers, storage and PCs, creating new growth opportunities across its business. With a growing AI backlog, strong enterprise demand and a broad infrastructure portfolio, Dell is well positioned to benefit from the next phase of cloud and AI infrastructure expansion in 2026 and beyond.
Dell’s AI Infrastructure Push Faces Tough RivalsDell Technologies is a major player in the AI infrastructure market but faces stiff competition from Super Micro Computer (SMCI - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) .
Super Micro Computer is strengthening its AI infrastructure business through its Data Center Building Block Solutions (“DCBBS”), which provides end-to-end data center solutions, including liquid cooling, networking, power systems, software and services. The company highlighted its industry-leading time-to-online capabilities, helping customers deploy AI factories faster and more efficiently. Strong engineering expertise, design-for-manufacturing initiatives and factory automation are improving production speed, quality and margins. Super Micro Computer continues to expand its partnerships with NVIDIA, AMD, Intel and Arm, while increasing manufacturing capacity globally. Management believes DCBBS, software and services will become significant profit drivers as demand for AI infrastructure grows.
HPE is benefiting from strong AI and networking demand, with AI systems orders reaching $1.8 billion and expanding into orchestration, data movement and agentic AI workloads. A record backlog and a pipeline multiple times larger than the backlog support growth visibility. HPE is benefiting from rising demand for high-memory servers and AI inference, while the Juniper integration is driving networking momentum and cross-selling opportunities. Management expects durable demand, sustained AI adoption and continued growth across its Cloud & AI and Networking businesses through fiscal 2027.
DELL’s Share Price Performance, Valuation & EstimatesShares of Dell have gained 193.8% year to date, outperforming the broader Zacks Computer & Technology sector and the Zacks Computer - Micro Computers industry’s growth of 15.8% and 11%, respectively.
DELL’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, its forward price-to-earnings ratio of 24.6X is significantly below the industry’s average of 29.93X.
DELL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $18.66 per share, increasing 45.44% over the past 30 days. This suggests 81.17% year-over-year growth.
DELL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oracle (ORCL 0.05%) shares are selling off. The database giant reported results for its fiscal fourth quarter of 2026 (the period ended May 31, 2026) Wednesday afternoon. The stock fell as much as 11% in early trading Thursday and finished the trading day down about 8.5%.
The quarter itself wasn't weak. Revenue rose 21% year over year to $19.2 billion, with cloud revenue jumping 47% to $9.9 billion. And remaining performance obligations (contracted revenue the company hasn't yet delivered) ballooned to $638 billion -- up $85 billion in just three months.
Instead, investors seem focused on the bill. Oracle's capital expenditures hit $55.7 billion in fiscal 2026 -- above the $50 billion management forecast in March -- and free cash flow came in at negative $23.7 billion. Further, spending is set to climb again in fiscal 2027, with management guiding for a net cash outlay of about $70 billion after customer prepayments. And Oracle plans to raise about $40 billion in new debt and equity.
But every dollar of that spending lands on a supplier's income statement. Here's a closer look at three companies positioned to capture it.
Image source: The Motley Fool.
1. Nvidia The most obvious beneficiary is AI (artificial intelligence) chipmaker Nvidia (NVDA +0.15%). Oracle's flagship Zettascale10 superclusters -- including the system behind OpenAI's Stargate site in Texas -- are built on Nvidia hardware, with initial deployments targeting up to 800,000 of the chipmaker's graphics processing units (GPUs). On the fiscal fourth-quarter earnings call, Oracle co-CEO Clay Magouyrk said the company intends to bring almost one gigawatt of capacity online this quarter -- about as much as it added in all of fiscal 2026.
Notably, most of Oracle's recent contract growth came from large AI deals in which the customer either prepaid for the GPUs or bought the chips and supplied them to Oracle directly. Those portions of its contracts now total $75 billion. In other words, the chips get bought whether or not Oracle fronts the cash.
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Nvidia, of course, has already been demonstrating an inflection in sales. In its fiscal first quarter of 2027 (the period ended April 26, 2026), revenue grew 85% year over year to $81.6 billion, and data center revenue soared 92% to $75.2 billion as its Blackwell platform ramped.
2. Advanced Micro Devices Advanced Micro Devices (AMD +4.91%) may have the most direct claim on Oracle's checkbook. Last October, the two companies said Oracle's cloud unit will be a launch partner for the first publicly available AI supercluster built on AMD's Instinct MI450 GPUs, with an initial deployment of 50,000 chips starting in the third quarter of calendar 2026 -- a window that opens next month.
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AMD's data center revenue rose 57% year over year to $5.8 billion in the first quarter, driven by its EPYC server processors and Instinct GPU shipments. But the MI450, paired with the company's Helios rack systems, is the launch investors are watching.
"Customer engagement around MI450 Series and Helios is strengthening," said AMD chair and CEO Lisa Su in the company's first-quarter earnings release, adding that leading customer forecasts were exceeding AMD's initial expectations.
3. Dell Technologies GPUs don't go into data centers alone. They arrive inside servers and racks from companies like Dell Technologies (DELL +1.05%). The infrastructure specialist booked $24.4 billion of AI orders in its fiscal first quarter of 2027 (the period ended May 1, 2026) and recognized $16.1 billion of AI server revenue. Dell now expects about $60 billion of AI server revenue this fiscal year, up from its prior $50 billion forecast.
"We exited the quarter with a record $51.3 billion of AI backlog," said Dell vice chairman and chief operating officer Jeff Clarke in the company's fiscal first-quarter earnings call. He added that Dell's pipeline remains multiples of that backlog and that the company's constraint in the second half is securing components, not finding demand.
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Dell doesn't break out AI orders by customer. But the data center construction wave Oracle is helping fund is exactly the market Dell sells into.
The suppliers get paid first So, what should investors make of a customer whose spending is climbing while its stock is punished for it?
Suppliers book revenue when hardware ships. Oracle recoups its investment only as customers consume contracted cloud services over many years. While the market debates whether $638 billion of contracts will convert into profitable revenue, the chip and server makers will have already been paid.
Of course, supplier exposure carries its own risks. If AI demand disappoints or financing tightens, hardware orders could slow quickly -- and Oracle's plan to raise about $40 billion is a reminder that this spending leans on a willing capital market.
Overall, I think the suppliers offer a simpler way to benefit from Oracle's build-out than Oracle itself. After all, the spending plans that spooked Oracle investors this week are the same ones filling its suppliers' order books.
In the Artificial Intelligence (AI) space, NVIDIA Corporation (NVDA - Free Report) has been one of the leaders during the AI boom. However, there are many other companies in the AI ecosystem that are performing extremely well as they are leaders in growing the infrastructure needed for AI spending. Two such companies are Micron Technology (MU - Free Report) and Dell Technologies (DELL - Free Report) . Over the past year, both stocks have more than doubled. While MU has risen 760.34%, DELL has gained 257.25%. On the other hand, NVIDIA is up by 43.63%.
Micron Benefits From AI-Driven Memory CycleMicron is benefiting from the AI boom currently in place. Their High Bandwidth Memory (“HBM”) is used in AI-optimized accelerators and in the high-end servers deployed in data centers. Therefore, the company is embedded in the growth engine of the new AI ecosystem.
Micron reported positive results for its second-quarter fiscal 2026. Revenues reached $23.86 billion and non-GAAP EPS of $12.20 per share. For the third quarter, the company forecasts fiscal 2026 revenues of $33.5 billion for memory, which continues to be impacted by increasing demand for AI applications.
Micron is one of the few suppliers that can produce HBM in volume and thus benefit greatly from the shift to AI memory in the datacenter, as demand for memory is expected to continue to grow quickly while supply remains constrained.
Dell Gains AI Infrastructure Momentum Dell Technologies, one of the leading producers of AI-optimized servers, storage systems, and end-to-end infrastructure solutions, is poised to benefit to a large extent from rapidly growing spending on AI.
Dell reported its first-quarter fiscal 2027 revenues of $43.8 billion. AI server revenues surged 757% to $16.1 billion, as AI-optimized servers are seeing strong demand. In terms of orders, Dell reported $24.4 billion in AI orders for the quarter. Management has upped its fiscal 2027 AI revenue estimate to $60 billion.
Dell has a large and growing AI backlog and a growing base of large enterprise customers. As a result, its position in the AI infrastructure market is solidifying. The company’s partnerships with the leading semiconductor companies are also enhancing Dell’s position within the AI-focused ecosystem of infrastructure developers.
Both stocks carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Dell Technologies (DELL - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Dell Technologies is one of 592 companies in the Computer and Technology group. The Computer and Technology group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Dell Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DELL's full-year earnings has moved 49.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DELL has returned 211% so far this year. In comparison, Computer and Technology companies have returned an average of 15.9%. This shows that Dell Technologies is outperforming its peers so far this year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Ceva (CEVA - Free Report) . The stock has returned 111.6% year-to-date.
Over the past three months, Ceva's consensus EPS estimate for the current year has increased 16.5%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Dell Technologies is a member of the Computer - Micro Computers industry, which includes 5 individual companies and currently sits at #26 in the Zacks Industry Rank. On average, this group has gained an average of 13% so far this year, meaning that DELL is performing better in terms of year-to-date returns.
In contrast, Ceva falls under the Internet - Software industry. Currently, this industry has 170 stocks and is ranked #85. Since the beginning of the year, the industry has moved -14.1%.
Investors with an interest in Computer and Technology stocks should continue to track Dell Technologies and Ceva. These stocks will be looking to continue their solid performance.
BEIJING, March 16, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025, and also announced a final cash dividend.
Business and Financial Highlights for the Fourth Quarter and Fiscal Year 2025
Gross transaction value (GTV)1 in 2025 was RMB3,183.3 billion (US$455.2 billion), a decrease of 5.0% year-over-year. GTV of existing home transactions was RMB2,151.5 billion (US$307.7 billion), a decrease of 4.2% year-over-year. GTV of new home transactions was RMB890.9 billion (US$127.4 billion), a decrease of 8.2% year-over-year.
In the fourth quarter of 2025, GTV was RMB724.1 billion (US$103.6 billion), a decrease of 36.7% year-over-year. GTV of existing home transactions was RMB482.0 billion (US$68.9 billion), a decrease of 35.3% year-over-year. GTV of new home transactions was RMB207.0 billion (US$29.6 billion), a decrease of 41.7% year-over-year.Net revenues in 2025 were RMB94.6 billion (US$13.5 billion), an increase of 1.2% year-over-year.
In the fourth quarter of 2025, net revenues were RMB22.2 billion (US$3.2 billion), a decrease of 28.7% year-over-year.Net income in 2025 was RMB2,991 million (US$428 million), a decrease of 26.7% year-over-year.
Adjusted net income2 in 2025 was RMB5,017 million (US$717 million), a decrease of 30.4% year-over-year.
In the fourth quarter of 2025, net income was RMB82 million (US$12 million), compared to RMB577 million in the same period of 2024. Adjusted net income was RMB517 million (US$74 million), a decrease of 61.5% year-over-year.Number of stores was 61,139 as of December 31, 2025, a 18.5% increase from one year ago. Number of active stores3 was 58,376 as of December 31, 2025, a 17.5% increase from one year ago.Number of agents was 523,009 as of December 31, 2025, a 4.6% increase from one year ago. Number of active agents4 was 445,632 as of December 31, 2025, relatively flat compared with one year ago.Mobile monthly active users (MAU)5 averaged 43.8 million in the fourth quarter of 2025, compared to 43.2 million in the same period of 2024.
Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “In 2025, in response to the profound evolution of residential service demands, we centered our efforts on customer value and drove a strategic upgrade toward efficiency-driven growth.
In our home transaction services, we leveraged data and AI capabilities to reshape our service and business models, consistently enhancing the platform’s professional service competencies and operational efficiency. In our home renovation and furnishing and home rental services, we focused on improving the quality of profitability and establishing sustainable, replicable operating models, bringing both businesses into a healthier stage of development.”
“Looking ahead, we believe that the true ability to navigate market cycles stems not from scale itself, but from the capacity to consistently create genuine value for consumers. In 2026, we will respond more profoundly to customer needs, building systematic service capabilities that span the residential lifecycle. Meanwhile, we will leverage AI technology to reconstruct our competitive moats, further amplifying the professional value of service providers and platform efficiency, and ultimately elevating the living experience for consumers through higher-quality services,” concluded Mr. Peng.
Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In 2025, we implemented a series of efficiency-enhancing initiatives focused on optimizing unit economics and the Company's cost structure, thereby strengthening the Company's operational resilience for the future. Despite a challenging market environment, the Company's net revenues grew by 1.2% year-over-year to RMB94.6 billion in 2025. Our cost and expense structure also improved: the contribution margin for new home transaction services increased by 0.2 percentage point year-over-year in 2025, while the contribution margin for existing home transaction services improved sequentially in the fourth quarter of 2025. Profitability for home renovation and furnishing, as well as home rental services, continued to progress, achieving a significant narrowing of loss and full-year profitability at the operating level, respectively. Operational efficiency also trended upward, with the ratio of operating expenses to net revenues decreasing by 1.4 percentage points year-over-year for the full year 2025.
We remain steadfast in our commitment to rewarding shareholders through proactive capital allocation measures. In 2025, we have in aggregate repurchased shares with a total consideration of approximately US$921 million, representing a year-over-year increase of approximately 29%. Meanwhile, we are here to declare a final cash dividend, with an aggregate amount of approximately US$0.3 billion. Altogether, our total shareholder return for 2025 reached approximately US$1.2 billion, up over 9% year-over-year.
Looking ahead, we will maintain prudent financial discipline and enhance resource allocation efficiency. While ensuring support for long-term strategic investments, we will continue to optimize our capital allocation structure to create sustainable, long-term value for our shareholders.”
Fourth Quarter 2025 Financial Results
Net Revenues
Net revenues decreased by 28.7% to RMB22.2 billion (US$3.2 billion) in the fourth quarter of 2025 from RMB31.1 billion in the same period of 2024, primarily attributable to the high base of net revenues from new home and existing home transaction services, which is partially offset by the increase of net revenues from home rental services.
Net revenues from existing home transaction services decreased by 39.0% to RMB5.4 billion (US$0.8 billion) in the fourth quarter of 2025 from RMB8.9 billion in the same period of 2024, primarily due to a high base effect for GTV of existing home transactions, which decreased by 35.3% to RMB482.0 billion (US$68.9 billion) in the fourth quarter of 2025 from RMB744.8 billion in the same period of 2024.Among that, (i) commission revenue decreased by 42.9% to RMB4.2 billion (US$0.6 billion) in the fourth quarter of 2025 from RMB7.4 billion in the same period of 2024, primarily due to a high base effect for GTV of existing home transactions served by Lianjia stores, which decreased by 43.0% to RMB177.6 billion (US$25.4 billion) in the fourth quarter of 2025 from RMB311.7 billion in the same period of 2024; and
(ii) revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on the Company’s platform, decreased by 19.9% to RMB1.2 billion (US$0.2 billion) in the fourth quarter of 2025 from RMB1.5 billion in the same period of 2024, primarily due to a high base effect for GTV of existing home transactions served by connected agents on the Company’s platform in the same period of 2024, which decreased by 29.7% to RMB304.5 billion (US$43.5 billion) in the fourth quarter of 2025 from RMB433.2 billion in the same period of 2024.
Net revenues from new home transaction services decreased by 44.5% to RMB7.3 billion (US$1.0 billion) in the fourth quarter of 2025 from RMB13.1 billion in the same period of 2024, primarily due to due to a high base effect for GTV of new home transactions in the same period of 2024, which decreased by 41.7% to RMB207.0 billion (US$29.6 billion) in the fourth quarter of 2025 from RMB355.3 billion in the same period of 2024. Of these, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise in new home transaction services and other sales channels decreased by 41.3% to RMB168.7 billion (US$24.1 billion) in the fourth quarter of 2025 from RMB287.5 billion in the same period of 2024, while the GTV of new home transactions served by Lianjia brand decreased by 43.5% to RMB38.3 billion (US$5.5 billion) in the fourth quarter of 2025 from RMB67.8 billion in the same period of 2024.Net revenues from home renovation and furnishing decreased by 12.0% to RMB3.6 billion (US$0.5 billion) in the fourth quarter of 2025 from RMB4.1 billion in the same period of 2024, as the Company proactively optimized the channel mix and moderated pace of certain non-brokerage channels.Net revenues from home rental services increased by 18.1% to RMB5.4 billion (US$0.8 billion) in the fourth quarter of 2025 from RMB4.6 billion in the same period of 2024, primarily attributable to the increase in the number of rental units under the Carefree Rent model, partially offset by the impact of an increasing proportion of a new product offering within the Carefree Rent business. Under the new model, the homeowners retain control over and beneficial interest in the properties, while the Company provides leasing agency services and lease term management services to both homeowners and tenants. Accordingly, under the new model, revenue is recognized based on net service fees derived from two sources: (1) commissions earned for facilitating the signing of lease agreements between homeowners and tenants; and (2) fees for lease term management services rendered throughout the lease period.Net revenues from emerging and other services were RMB459 million (US$66 million) in the fourth quarter of 2025, relatively flat compared with RMB439 million in the same period of 2024.
Cost of Revenues
Total cost of revenues decreased by 27.2% to RMB17.4 billion (US$2.5 billion) in the fourth quarter of 2025 from RMB24.0 billion in the same period of 2024.
Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels decreased by 46.6% to RMB4.6 billion (US$0.7 billion) in the fourth quarter of 2025 from RMB8.7 billion in the same period of 2024, primarily due to the decrease in GTV of new home transactions facilitated through connected agents and other sales channels.Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation decreased by 39.8% to RMB3.9 billion (US$0.6 billion) in the fourth quarter of 2025 from RMB6.5 billion in the same period of 2024, primarily attributable to the decrease in commission of Lianjia agents, consistent with the decreased GTV of existing and new home transactions they served by, as well as the decreased fixed personnel costs due to Company's disciplined headcount control.Cost of home renovation and furnishing. The Company’s cost of revenues for home renovation and furnishing was RMB2.6 billion (US$0.4 billion) in the fourth quarter of 2025, a decrease of 10.8% from RMB2.9 billion in the same period of 2024, which was in line with the trend in net revenues from home renovation and furnishing.Cost of home rental services. The Company’s cost of revenues for home rental services, which mainly consists of variable cost, increased by 10.9% to RMB4.8 billion (US$0.7 billion) in the fourth quarter of 2025 from RMB4.4 billion in the same period of 2024, primarily attributable to the growth of net revenues from home rental services, partially offset by an improved contribution margin resulting from an increasing proportion of the new product offering with a higher contribution margin under the Carefree Rent business, as well as enhanced operational efficiency.Cost related to stores. The Company’s cost related to stores decreased by 9.6% to RMB0.7 billion (US$0.1 billion) in the fourth quarter of 2025 from RMB0.8 billion in the same period of 2024, primarily attributable to the Lianjia stores optimization.Other costs. The Company’s other costs were RMB765 million (US$109 million) in the fourth quarter of 2025, relatively flat compared with RMB747 million in the same period of 2024.
Gross Profit
Gross profit decreased by 33.7% to RMB4.8 billion (US$0.7 billion) in the fourth quarter of 2025 from RMB7.2 billion in the same period of 2024. Gross margin decreased to 21.4% in the fourth quarter of 2025 from 23.0% in the same period of 2024, primarily due to reduced contribution of net revenues from existing home and new home transaction services, which historically carried higher contribution margins than the overall gross margin, partially offset by the increased contribution margin of home rental services.
Income (Loss) from Operations
Total operating expenses decreased by 20.4% to RMB4.9 billion (US$0.7 billion) in the fourth quarter of 2025 from RMB6.2 billion in the same period of 2024, primarily due to the Company’s cost optimization initiatives.
General and administrative expenses decreased by 23.9% to RMB2.3 billion (US$0.3 billion) in the fourth quarter of 2025 from RMB3.0 billion in the same period of 2024, primarily due to the Company’s cost optimization initiatives, as well as the decrease in both the provision for credit losses and share-based compensation expenses.Sales and marketing expenses decreased by 17.7% to RMB1.9 billion (US$0.3 billion) in the fourth quarter of 2025 from RMB2.3 billion in the same period of 2024, primarily due to the Company’s cost optimization initiatives, including lower personnel costs as well as reduced advertising and promotion expenses.Research and development expenses were RMB715 million (US$102 million) in the fourth quarter of 2025, relatively flat compared with RMB739 million in the same period of 2024.
Loss from operations was RMB147 million (US$21 million) in the fourth quarter of 2025, compared to income from operations of RMB1,011 million in the same period of 2024. Operating margin decreased to negative 0.7% in the fourth quarter of 2025 from 3.2% in the same period of 2024, primarily due to the decreased gross profit margin, as well as certain one-off expenses related to the Company’s cost optimization initiatives incurred in the fourth quarter of 2025.
Adjusted income from operations6 was RMB323 million (US$46 million) in the fourth quarter of 2025, compared to RMB1,755 million in the same period of 2024. Adjusted operating margin7 was 1.5% in the fourth quarter of 2025, compared to 5.6% in the same period of 2024. Adjusted EBITDA8 was RMB910 million (US$130 million) in the fourth quarter of 2025, compared to RMB2,343 million in the same period of 2024.
Net Income
Net income was RMB82 million (US$12 million) in the fourth quarter of 2025, compared to RMB577 million in the same period of 2024.
Adjusted net income decreased by 61.5% to RMB517 million (US$74 million) in the fourth quarter of 2025, from RMB1,344 million in the same period of 2024.
Net Income attributable to KE Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB88 million (US$13 million) in the fourth quarter of 2025, compared to RMB570 million in the same period of 2024.
Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB523 million (US$75 million) in the fourth quarter of 2025, compared to RMB1,336 million in the same period of 2024.
Net Income per ADS
Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders10 were RMB0.08 (US$0.01) and RMB0.08 (US$0.01) in the fourth quarter of 2025, respectively, compared to basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders RMB0.51 and RMB0.49 in the same period of 2024, respectively.
Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders11 were RMB0.48 (US$0.07) and RMB0.46 (US$0.07) in the fourth quarter of 2025, respectively, compared to RMB1.19 and RMB1.14 in the same period of 2024, respectively.
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments
As of December 31, 2025, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB55.5 billion (US$7.9 billion).
Fiscal Year 2025 Financial Results
Net Revenues
Net revenues were RMB94.6 billion (US$13.5 billion) in 2025, compared to RMB93.5 billion in 2024, primarily attributable to the increase of net revenues from home rental services and home renovation and furnishing, which was partially offset by the decrease of net revenues from new home and existing home transaction services.
Net revenues from existing home transaction services decreased by 11.3% to RMB25.0 billion (US$3.6 billion) in 2025 from RMB28.2 billion in 2024. GTV of existing home transactions decreased by 4.2% to RMB2,151.5 billion (US$307.7 billion) in 2025 from RMB2,246.5 billion in 2024. The steeper decline in net revenues relative to GTV in existing home transaction services was primarily attributable to a higher contribution from GTV of existing home transaction services served by connected agents on the Company’s platform, for which revenue is recorded on a net basis from platform service, franchise service and other value-added services, while for GTV served by Lianjia brand, the revenue is recorded on a gross commission revenue basis.Among that, (i) commission revenue decreased by 13.5% to RMB20.0 billion (US$2.9 billion) in 2025, from RMB23.1 billion in 2024, primarily due to the decreased GTV of existing home transactions served by Lianjia stores of 12.7% to RMB802.1 billion (US$114.7 billion) in 2025 from RMB918.5 billion in 2024; and
(ii) revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on the Company’s platform, were RMB5.0 billion (US$0.7 billion) in 2025, relatively stable compared with RMB5.1 billion in 2024, while GTV of existing home transactions served by connected agents on the Company’s platform increased by 1.6% to RMB1,349.4 billion (US$193.0 billion) in 2025 from RMB1,328.0 billion in 2024.
Net revenues from new home transaction services decreased by 9.1% to RMB30.6 billion (US$4.4 billion) in 2025 from RMB33.7 billion in 2024, primarily due to the decrease of GTV of new home transactions of 8.2% to RMB890.9 billion (US$127.4 billion) in 2025 from RMB970.0 billion in 2024. Of these, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise in new home transaction services and other sales channels decreased by 7.0% to RMB729.2 billion (US$104.3 billion) in 2025 from RMB784.4 billion in 2024, and the GTV of new home transactions served by Lianjia brand decreased by 12.9% to RMB161.6 billion (US$23.1 billion) in 2025 from RMB185.6 billion in 2024.Net revenues from home renovation and furnishing increased by 4.4% to RMB15.4 billion (US$2.2 billion) in 2025 from RMB14.8 billion in 2024.Net revenues from home rental services increased by 52.8% to RMB21.9 billion (US$3.1 billion) in 2025 from RMB14.3 billion in 2024, primarily attributable to the increase in the number of rental units under the Carefree Rent model, partially offset by a shift in revenue recognition mix resulting from an increasing proportion of the new product offering within the Carefree Rent business.Net revenues from emerging and other services were RMB1.6 billion (US$0.2 billion) in 2025, compared to RMB2.5 billion in 2024.
Cost of Revenues
Total cost of revenues increased by 5.5% to RMB74.4 billion (US$10.6 billion) in 2025 from RMB70.5 billion in 2024.
Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels decreased by 8.3% to RMB20.9 billion (US$3.0 billion) in 2025, from RMB22.8 billion in 2024, primarily due to the decrease in GTV of new home transactions facilitated through connected agents and other sales channels.Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation decreased by 6.6% to RMB17.7 billion (US$2.5 billion) in 2025 from RMB18.9 billion in 2024, primarily due to the decrease in commission of home transaction services for Lianjia agents, resulting from the decreased GTV of home transactions they served by.Cost of home renovation and furnishing. The Company’s cost of revenues for home renovation and furnishing increased by 3.4% to RMB10.6 billion (US$1.5 billion) in 2025 from RMB10.2 billion in 2024, which was in line with the growth of net revenues from home renovation and furnishing.Cost of home rental services. The Company’s cost of revenues for home rental services which mainly consists of variable costs, increased by 47.0% to RMB20.0 billion (US$2.9 billion) in 2025 from RMB13.6 billion in 2024, primarily attributable to the growth of net revenues from home rental services, partially offset by an improved contribution margin resulting from an increasing proportion of the new product offering with a higher contribution margin under the Carefree Rent business, as well as enhanced operational efficiency.Cost related to stores. The Company’s cost related to stores was RMB2.9 billion (US$0.4 billion) in 2025, relatively flat compared with RMB2.9 billion in 2024.Other costs. The Company’s other costs were RMB2.4 billion (US$0.3 billion) in 2025, compared with RMB2.1 billion in 2024, primarily attributable to the increase in the direct technical infrastructure costs such as cloud storage costs.
Gross Profit
Gross profit decreased by 11.9% to RMB20.2 billion (US$2.9 billion) in 2025 from RMB22.9 billion in 2024. Gross margin decreased to 21.4% in 2025 from 24.6% in 2024, primarily due to (a) reduced contribution of net revenues from existing home and new home transaction services, which historically carried higher contribution margins than the overall gross margin and (b) a drop in contribution margin of existing home transaction services, which was primarily due to the increase in fixed compensation costs for Lianjia agents. The decline in gross margin was partially offset by the increased contribution margin of home rental services.
Income from Operations
Total operating expenses decreased by 5.6% to RMB18.1 billion (US$2.6 billion) in 2025 from RMB19.2 billion in 2024.
General and administrative expenses decreased by 9.9% to RMB8.1 billion (US$1.2 billion) in 2025, from RMB9.0 billion in 2024, primarily due to the decrease in share-based compensation expenses and provision for credit losses.Sales and marketing expenses decreased by 5.8% to RMB7.3 billion (US$1.0 billion) in 2025 from RMB7.8 billion in 2024, primarily due to the Company’s cost optimization initiatives, including lower personnel costs as well as reduced advertising and promotion expenses.Research and development expenses increased by 13.0% to RMB2.6 billion (US$0.4 billion) in 2025 from RMB2.3 billion in 2024, primarily due to the increased personnel costs.
Income from operations was RMB2,111 million (US$302 million) in 2025, compared to RMB3,765 million in 2024. Operating margin decreased to 2.2% in 2025 from 4.0% in 2024, primarily due to the decreased gross profit margin, partially offset by the improved operating leverage.
Adjusted income from operations12 was RMB4,250 million (US$608 million) in 2025, compared to RMB6,890 million in 2024. Adjusted operating margin13 was 4.5% in 2025, compared to 7.4% in 2024. Adjusted EBITDA14 was RMB6,877 million (US$983 million) in 2025, compared to RMB9,534 million in 2024.
Net Income
Net income was RMB2,991 million (US$428 million) in 2025, compared to RMB4,078 million in 2024.
Adjusted net income decreased by 30.4% to RMB5,017 million (US$717 million) in 2025, from RMB7,211 million in 2024.
Net Income attributable to KE Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB2,994 million (US$428 million) in 2025, compared to RMB4,065 million in 2024.
Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders15 was RMB5,020 million (US$718 million) in 2025, compared to RMB7,198 million in 2024.
Net Income per ADS
Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders16 were RMB2.70 (US$0.39) and RMB2.59 (US$0.37) in 2025, respectively, compared to RMB3.58 and RMB3.45 in 2024, respectively.
Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders17 were RMB4.53 (US$0.65) and RMB4.34 (US$0.62) in 2025, respectively, compared to RMB6.33 and RMB6.10 in 2024, respectively.
Share Repurchase Program
As previously disclosed, the Company established a share repurchase program in August 2022 and upsized and extended it in August 2023, August 2024 and August 2025, under which the Company may purchase up to US$5 billion of its Class A ordinary shares and/or ADSs until August 31, 2028, subject to obtaining general unconditional mandate for the repurchase from the shareholders of the Company at each of the next three annual general meetings to be held in the forthcoming years to continue its share repurchase after the expiry of the existing share repurchase mandate granted by the annual general meeting held on June 27, 2025. As of December 31, 2025, the Company in aggregate has purchased approximately 159.3 million ADSs (representing approximately 477.8 million Class A ordinary shares) on the New York Stock Exchange with a total consideration of approximately US$2,546.5 million under this share repurchase program since its launch.
Final Cash Dividend
The Company is pleased to announce that its board of directors (the “Board”) has approved a final cash dividend (the “Dividend”) of US$0.092 per ordinary share, or US$0.276 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on April 8, 2026, Beijing/ Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The aggregate amount of the Dividend to be paid will be approximately US$0.3 billion, which will be funded by cash surplus on the Company’s balance sheet.
For holders of ordinary shares, in order to qualify for the Dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong no later than 4:30 p.m. on April 8, 2026 (Beijing/Hong Kong Time). Dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement. The payment date is expected to be on or around April 21, 2026 for holders of ordinary shares, and on or around April 24, 2026 for holders of ADSs.
Under the Company’s current dividend policy, the Board has discretion on whether to distribute dividends, subject to certain requirements of Cayman Islands law. In addition, the Company’s shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by the Board. If the Company decides to pay dividends, the form, frequency and amount will be based upon its future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the Board may deem relevant.
Conference Call Information
The Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Monday, March 16, 2026 (8:00 P.M. Beijing/Hong Kong Time on Monday, March 16, 2026) to discuss the financial results.
For participants who wish to join the conference call using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering.
Participant Online Registration:
English Line: https://s1.c-conf.com/diamondpass/10052404-g5f4d3.html
Chinese Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10052407-e3f4ch.html
A replay of the conference call will be accessible through March 23, 2026, by dialing the following numbers:
United States:+1-855-883-1031Mainland, China:400-1209-216Hong Kong, China:800-930-639International:+61-7-3107-6325Replay PIN (English line):10052404Replay PIN (Chinese simultaneous interpretation line):10052407 A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://investors.ke.com.
Exchange Rate
This press release contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial information contained in this earnings release.
Non-GAAP Financial Measures
The Company uses adjusted income (loss) from operations, adjusted net income (loss), adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, adjusted operating margin, adjusted EBITDA and adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders, each a non-GAAP financial measure, in evaluating its operating results and formulating its business plan. Beike believes that these non-GAAP financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its net income (loss). Beike also believes that these non-GAAP financial measures provide useful information about its results of operations, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in formulating its business plan. A limitation of using these non-GAAP financial measures is that these non-GAAP financial measures exclude share-based compensation expenses that have been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business. The Group recognized fair value loss and impairment in relation to its investments in Beihaojia business. As such impairment does not represent a non-recurring item, it has not been excluded when calculating Non‑GAAP financial measures.
The presentation of these non-GAAP financial measures should not be considered in isolation or construed as an alternative to gross profit, net income (loss) or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review these non-GAAP financial measures and the reconciliation to the most directly comparable GAAP measures. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Beike encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted income (loss) from operations is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Adjusted operating margin is defined as adjusted income (loss) from operations as a percentage of net revenues. Adjusted net income (loss) is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Adjusted EBITDA is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted.
Please see the “Unaudited reconciliation of GAAP and non-GAAP results” included in this press release for a full reconciliation of each non-GAAP measure to its respective comparable GAAP measure.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Among other things, the quotations from management in this press release, as well as Beike’s strategic and operational plans, contain forward-looking statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please visit: https://investors.ke.com.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
Source: KE Holdings Inc.
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share, per share data) As of
December 31, As of
December 31, 2024 2025 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 11,442,965 7,773,182 1,111,550Restricted cash 8,858,449 8,170,605 1,168,381Short-term investments 41,317,700 39,579,961 5,659,859Financing receivables, net of allowance for credit losses of RMB147,330 and RMB174,478 as of December 31, 2024 and 2025, respectively 2,835,527 1,353,682 193,574Accounts receivable and contract assets, net of allowance for credit losses of RMB1,636,163 and RMB1,612,202 as of December 31, 2024 and 2025, respectively 5,497,989 3,936,976 562,980Amounts due from and prepayments to related parties 379,218 409,867 58,610Loan receivables from related parties 18,797 315,755 45,152Inventories 1,609,876 2,854,034 408,121Prepayments, receivables and other assets 4,642,824 3,726,128 532,829Total current assets 76,603,345 68,120,190 9,741,056Non-current assets Property, plant and equipment, net 2,400,211 2,069,624 295,952Right-of-use assets 23,366,879 19,144,129 2,737,574Long-term investments, net 23,790,106 20,148,524 2,881,201Intangible assets, net 857,635 722,676 103,341Goodwill 4,777,420 4,660,360 666,423Long-term loan receivables from related parties 131,410 39,573 5,659Other non-current assets 1,222,277 1,763,102 252,121Total non-current assets 56,545,938 48,547,988 6,942,271TOTAL ASSETS 133,149,283 116,668,178 16,683,327 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share data) As of
December 31, As of
December 31, 2024 2025 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 9,492,629 6,052,129 865,443Amounts due to related parties 391,446 348,467 49,830Loan payable to related parties - 497,939 71,204Employee compensation and welfare payable 8,414,472 6,504,197 930,088Customer deposits payable 6,078,623 4,157,248 594,479Income taxes payable 1,028,735 702,607 100,471Short-term borrowings 288,280 207,717 29,703Lease liabilities current portion 13,729,701 10,658,576 1,524,156Contract liabilities and deferred revenue 6,051,867 5,690,293 813,701Accrued expenses and other current liabilities 7,268,505 7,588,077 1,085,080Total current liabilities 52,744,258 42,407,250 6,064,155Non-current liabilities Deferred tax liabilities 317,697 317,209 45,360Lease liabilities non-current portion 8,636,770 6,969,571 996,635Long-term borrowings - 182,917 26,157Long-term loan payable to related parties - 259,249 37,072Other non-current liabilities 2,563 2,148 307Total non-current liabilities 8,957,030 7,731,094 1,105,531TOTAL LIABILITIES 61,701,288 50,138,344 7,169,686 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share data) As of
December 31, As of
December 31, 2024 2025 RMB RMB US$ SHAREHOLDERS’ EQUITY KE Holdings Inc. shareholders’ equity Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 24,114,698,720 Class A ordinary shares and 885,301,280 Class B ordinary shares. 3,479,616,986 Class A ordinary shares issued and 3,337,567,403 Class A ordinary shares outstanding(1) as of December 31, 2024; 3,366,778,024 Class A ordinary shares issued and 3,233,808,859 Class A ordinary shares outstanding(1) as of December 31, 2025; and 145,413,446 and 139,447,770 Class B ordinary shares issued and outstanding as of December 31, 2024 and 2025, respectively) 461 450 64 Treasury shares (949,410) (848,433) (121,324)Additional paid-in capital 72,460,562 64,802,176 9,266,588 Statutory reserves 926,972 1,054,872 150,845 Accumulated other comprehensive income 609,112 290,029 41,474 (Accumulated Deficit) / Retained Earnings (1,723,881) 1,142,194 163,332 Total KE Holdings Inc. shareholders' equity 71,323,816 66,441,288 9,500,979 Non-controlling interests 124,179 88,546 12,662 TOTAL SHAREHOLDERS' EQUITY 71,447,995 66,529,834 9,513,641 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 133,149,283 116,668,178 16,683,327 (1) Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs.
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$ Net revenues Existing home transaction services8,922,030 5,439,563 777,847 28,201,003 25,020,035 3,577,817 New home transaction services13,076,767 7,263,714 1,038,697 33,653,403 30,597,319 4,375,358 Home renovation and furnishing4,106,834 3,615,359 516,989 14,768,947 15,426,141 2,205,909 Home rental services4,580,502 5,411,219 773,794 14,334,479 21,900,320 3,131,704 Emerging and other services438,974 458,910 65,623 2,499,666 1,636,390 234,001 Total net revenues31,125,107 22,188,765 3,172,950 93,457,498 94,580,205 13,524,789 Cost of revenues Commission-split(8,709,790) (4,648,344) (664,704) (22,766,957) (20,873,405) (2,984,857)Commission and compensation-internal(6,456,881) (3,889,844) (556,240) (18,903,786) (17,656,184) (2,524,801)Cost of home renovation and furnishing(2,884,614) (2,573,090) (367,947) (10,229,696) (10,581,816) (1,513,180)Cost of home rental services(4,370,712) (4,846,177) (692,994) (13,619,506) (20,020,954) (2,862,958)Cost related to stores(785,966) (710,483) (101,598) (2,854,988) (2,851,831) (407,806)Others(746,958) (764,515) (109,325) (2,138,510) (2,383,938) (340,898)Total cost of revenues(1)(23,954,921) (17,432,453) (2,492,808) (70,513,443) (74,368,128) (10,634,500)Gross profit7,170,186 4,756,312 680,142 22,944,055 20,212,077 2,890,289 Operating expenses Sales and marketing expenses(1)(2,344,000) (1,930,139) (276,006) (7,783,341) (7,328,909) (1,048,020)General and administrative expenses(1)(2,961,294) (2,254,455) (322,382) (8,960,747) (8,075,414) (1,154,769)Research and development expenses(1)(738,683) (715,232) (102,277) (2,283,424) (2,580,564) (369,016)Impairment of goodwill, intangible assets and other long-lived assets(115,179) (3,617) (517) (151,576) (116,332) (16,635)Total operating expenses(6,159,156) (4,903,443) (701,182) (19,179,088) (18,101,219) (2,588,440)Income (loss) from operations1,011,030 (147,131) (21,040) 3,764,967 2,110,858 301,849 Interest income, net283,417 138,357 19,785 1,260,163 807,505 115,472 Share of results of equity investees6,144 (6,670) (954) 10,192 16,420 2,348 Impairment loss and provision related to equity investments accounted for using equity method- (103,662) (14,823) - (103,662) (14,823)Fair value changes in investments, net125,333 127,492 18,231 312,791 462,668 66,161 Impairment loss for equity investments accounted for using Measurement Alternative(971) (1,015) (145) (9,408) (2,731) (391)Foreign currency exchange loss(6,805) (4,658) (666) (34,674) (59,746) (8,544)Other income, net192,069 276,396 39,524 1,566,038 1,445,791 206,745 Income before income tax expense1,610,217 279,109 39,912 6,870,069 4,677,103 668,817 Income tax expense(1,032,969) (196,810) (28,143) (2,791,889) (1,686,089) (241,108)Net income577,248 82,299 11,769 4,078,180 2,991,014 427,709 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)(All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$ Net loss (income) attributable to non-controlling interests shareholders(7,256) 5,555 794 (13,280) 2,961 423 Net income attributable to KE Holdings Inc.569,992 87,854 12,563 4,064,900 2,993,975 428,132 Net income attributable to KE Holdings Inc.’s ordinary shareholders569,992 87,854 12,563 4,064,900 2,993,975 428,132 Net income577,248 82,299 11,769 4,078,180 2,991,014 427,709 Currency translation adjustments348,802 (200,952) (28,736) 217,142 (429,040) (61,352)Unrealized gains (losses) on available-for-sale investments, net of reclassification(15,206) 17,921 2,563 147,668 109,957 15,724 Total comprehensive income (loss)910,844 (100,732) (14,404) 4,442,990 2,671,931 382,081 Comprehensive loss (income) attributable to non-controlling interests shareholders(7,256) 5,555 794 (13,280) 2,961 423 Comprehensive income (loss) attributable to KE Holdings Inc.903,588 (95,177) (13,610) 4,429,710 2,674,892 382,504 Comprehensive income (loss) attributable to KE Holdings Inc.’s ordinary shareholders903,588 (95,177) (13,610) 4,429,710 2,674,892 382,504 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued) (All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$Weighted average number of ordinary shares used in computing net income per share, basic and diluted —Basic3,356,948,233 3,277,540,751 3,277,540,751 3,409,772,592 3,326,149,994 3,326,149,994—Diluted3,525,088,426 3,414,320,704 3,414,320,704 3,537,408,029 3,472,076,149 3,472,076,149 Weighted average number of ADS used in computing net income per ADS, basic and diluted —Basic1,118,982,744 1,092,513,584 1,092,513,584 1,136,590,864 1,108,716,665 1,108,716,665—Diluted1,175,029,475 1,138,106,901 1,138,106,901 1,179,136,010 1,157,358,716 1,157,358,716 Net income per share attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.17 0.03 0.00 1.19 0.90 0.13—Diluted0.16 0.03 0.00 1.15 0.86 0.12 Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.51 0.08 0.01 3.58 2.70 0.39—Diluted0.49 0.08 0.01 3.45 2.59 0.37 (1) Includes share-based compensation expenses as follows: Cost of revenues135,358 119,199 17,045 521,293 446,120 63,794Sales and marketing expenses53,410 49,912 7,137 197,320 181,877 26,008General and administrative expenses360,801 230,224 32,922 1,821,817 1,111,415 158,931Research and development expenses45,499 39,055 5,585 185,645 165,512 23,668 KE Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$ Income (loss) from operations1,011,030 (147,131) (21,040) 3,764,967 2,110,858 301,849 Share-based compensation expenses595,068 438,390 62,689 2,726,075 1,904,924 272,401 Amortization of intangible assets resulting from acquisitions and business cooperation agreement33,695 27,751 3,968 247,862 117,399 16,788 Impairment of goodwill, intangible assets and other long-lived assets115,179 3,617 517 151,576 116,332 16,635 Adjusted income from operations1,754,972 322,627 46,134 6,890,480 4,249,513 607,673 Net income577,248 82,299 11,769 4,078,180 2,991,014 427,709 Share-based compensation expenses595,068 438,390 62,689 2,726,075 1,904,924 272,401 Amortization of intangible assets resulting from acquisitions and business cooperation agreement33,695 27,751 3,968 247,862 117,399 16,788 Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration(1)27,960 (32,177) (4,601) 24,371 (92,433) (13,218)Impairment of goodwill, intangible assets and other long-lived assets115,179 3,617 517 151,576 116,332 16,635 Impairment of investments(1)971 4,124 590 9,408 5,840 835 Tax effects on non-GAAP adjustments(6,495) (6,602) (944) (26,399) (26,143) (3,738)Adjusted net income1,343,626 517,402 73,988 7,211,073 5,016,933 717,412 Net income577,248 82,299 11,769 4,078,180 2,991,014 427,709 Income tax expense1,032,969 196,810 28,143 2,791,889 1,686,089 241,108 Share-based compensation expenses595,068 438,390 62,689 2,726,075 1,904,924 272,401 Amortization of intangible assets38,041 32,412 4,635 268,684 138,260 19,771 Depreciation of property, plant and equipment238,496 323,199 46,217 743,728 934,119 133,577 Interest income, net(283,417) (138,357) (19,785) (1,260,163) (807,505) (115,472)Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration(1)27,960 (32,177) (4,601) 24,371 (92,433) (13,218)Impairment of goodwill, intangible assets and other long-lived assets115,179 3,617 517 151,576 116,332 16,635 Impairment of investments(1)971 4,124 590 9,408 5,840 835 Adjusted EBITDA2,342,515 910,317 130,174 9,533,748 6,876,640 983,346 Net income attributable to KE Holdings Inc.’s ordinary shareholders569,992 87,854 12,563 4,064,900 2,993,975 428,132 Share-based compensation expenses595,068 438,390 62,689 2,726,075 1,904,924 272,401 Amortization of intangible assets resulting from acquisitions and business cooperation agreement33,695 27,751 3,968 247,862 117,399 16,788 Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration(1)27,960 (32,177) (4,601) 24,371 (92,433) (13,218)Impairment of goodwill, intangible assets and other long-lived assets115,179 3,617 517 151,576 116,332 16,635 Impairment of investments(1)971 4,124 590 9,408 5,840 835 Tax effects on non-GAAP adjustments(6,495) (6,602) (944) (26,399) (26,143) (3,738)Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders(7) (7) (1) (28) (28) (4)Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders1,336,363 522,950 74,781 7,197,765 5,019,866 717,831 (1) Impairment and fair value change of certain investments related to the Beihaojia business has not been exclude when calculating Non-GAAP measures.
KE Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Continued)(All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$ Weighted average number of ADS used in computing net income per ADS, basic and diluted —Basic1,118,982,744 1,092,513,584 1,092,513,584 1,136,590,864 1,108,716,665 1,108,716,665—Diluted1,175,029,475 1,138,106,901 1,138,106,901 1,179,136,010 1,157,358,716 1,157,358,716 Weighted average number of ADS used in calculating adjusted net income per ADS, basic and diluted —Basic1,118,982,744 1,092,513,584 1,092,513,584 1,136,590,864 1,108,716,665 1,108,716,665—Diluted1,175,029,475 1,138,106,901 1,138,106,901 1,179,136,010 1,157,358,716 1,157,358,716 Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.51 0.08 0.01 3.58 2.70 0.39—Diluted0.49 0.08 0.01 3.45 2.59 0.37 Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.68 0.40 0.06 2.75 1.83 0.26—Diluted0.65 0.38 0.06 2.65 1.75 0.25 Adjusted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic1.19 0.48 0.07 6.33 4.53 0.65—Diluted1.14 0.46 0.07 6.10 4.34 0.62 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(All amounts in thousands)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$ Net cash provided by (used in) operating activities5,202,518 1,911,758 273,379 9,447,137 (376,170) (53,794)Net cash provided by (used in) investing activities(2,015,584) (1,111,818) (158,988) (9,378,025) 5,894,327 842,878 Net cash provided by (used in) financing activities1,109,860 (708,693) (101,343) (5,794,635) (9,793,199) (1,400,409)Effect of exchange rate change on cash, cash equivalents and restricted cash184,196 (113,929) (16,292) 169,476 (82,585) (11,807)Net increase (decrease) in cash, cash equivalents and restricted cash4,480,990 (22,682) (3,244) (5,556,047) (4,357,627) (623,132)Cash, cash equivalents and restricted cash at the beginning of the period15,820,424 15,966,469 2,283,175 25,857,461 20,301,414 2,903,063 Cash, cash equivalents and restricted cash at the end of the period20,301,414 15,943,787 2,279,931 20,301,414 15,943,787 2,279,931 KE Holdings Inc.
UNAUDITED SEGMENT CONTRIBUTION MEASURE(All amounts in thousands)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$Existing home transaction services Net revenues 8,922,030 5,439,563 777,847 28,201,003 25,020,035 3,577,817 Commission and compensation (5,315,541) (3,240,687) (463,412) (16,016,079) (15,185,117) (2,171,443)Contribution 3,606,489 2,198,876 314,435 12,184,924 9,834,918 1,406,374 New home transaction services Net revenues 13,076,767 7,263,714 1,038,697 33,653,403 30,597,319 4,375,358 Commission and compensation (9,723,154) (5,209,466) (744,944) (25,304,481) (22,950,571) (3,281,888)Contribution 3,353,613 2,054,248 293,753 8,348,922 7,646,748 1,093,470 Home renovation and furnishing Net revenues 4,106,834 3,615,359 516,989 14,768,947 15,426,141 2,205,909 Material costs, commission and compensation (2,884,614) (2,573,090) (367,947) (10,229,696) (10,581,816) (1,513,180)Contribution 1,222,220 1,042,269 149,042 4,539,251 4,844,325 692,729 Home rental services Net revenues 4,580,502 5,411,219 773,794 14,334,479 21,900,320 3,131,704 Property leasing costs, commission and compensation (4,370,712) (4,846,177) (692,994) (13,619,506) (20,020,954) (2,862,958)Contribution 209,790 565,042 80,800 714,973 1,879,366 268,746 Emerging and other services Net revenues 438,974 458,910 65,623 2,499,666 1,636,390 234,001 Commission and compensation (127,976) (88,035) (12,588) (350,183) (393,901) (56,327)Contribution 310,998 370,875 53,035 2,149,483 1,242,489 177,674 KE Holdings Inc.
UNAUDITED SEGMENT CONTRIBUTION MEASURE (Continued)(All amounts in thousands)
For the Three Months Ended For the Year Ended December 31,
2024 December 31,
2025 December 31,
2025 December 31,
2024 December 31,
2025 December 31,
2025 RMB RMB US$ RMB RMB US$Reconciliation of profit/(loss) Cost related to stores (785,966) (710,483) (101,598) (2,854,988) (2,851,831) (407,806)Other costs (746,958) (764,515) (109,325) (2,138,510) (2,383,938) (340,898)Amounts not allocated to segment: Sales and marketing expenses (2,344,000) (1,930,139) (276,006) (7,783,341) (7,328,909) (1,048,020)General and administrative expenses (2,961,294) (2,254,455) (322,382) (8,960,747) (8,075,414) (1,154,769)Research and development expenses (738,683) (715,232) (102,277) (2,283,424) (2,580,564) (369,016)Impairment of goodwill, intangible assets and other long-lived assets (115,179) (3,617) (517) (151,576) (116,332) (16,635)Total operating expenses (6,159,156) (4,903,443) (701,182) (19,179,088) (18,101,219) (2,588,440)Income (loss) from operations 1,011,030 (147,131) (21,040) 3,764,967 2,110,858 301,849 ________________________________
1 GTV for a given period is calculated as the total value of all transactions which the Company facilitated on the Company’s platform and evidenced by signed contracts as of the end of the period, including the value of the existing home transactions, new home transactions, home renovation and furnishing and emerging and other services (excluding home rental services), and including transactions that are contracted but pending closing at the end of the relevant period. For the avoidance of doubt, for transactions that failed to close afterwards, the corresponding GTV represented by these transactions will be deducted accordingly.
2 Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
3 Based on our accumulated operational experience, we have introduced the operating metrics of number of active stores and number of active agents on our platform, which can better reflect the operational activeness of stores and agents on our platform.
“Active stores” as of a given date is defined as stores on our platform excluding the stores which (i) have not facilitated any housing transaction during the preceding 60 days, (ii) do not have any agent who has engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding seven days, or (iii) have not been visited by any agent during the preceding 14 days. The number of active stores was 49,693 as of December 31, 2024.
4 “Active agents” as of a given date is defined as agents on our platform excluding the agents who (i) delivered notice to leave but have not yet completed the exit procedures, (ii) have not engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding 30 days, or (iii) have not participated in facilitating any housing transaction during the preceding three months. The number of active agents was 445,271 as of December 31, 2024.
5 “Mobile monthly active users” or “mobile MAU” are to the sum of (i) the number of accounts that have accessed our platform through our Beike or Lianjia mobile app (with duplication eliminated) at least once during a month, and (ii) the number of Weixin users that have accessed our platform through our Weixin Mini Programs at least once during a month. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile MAUs for each month of such period, by (ii) the number of months in such period.
6 Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
7 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.
8 Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
9 Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
10 ADS refers to American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is net income (loss) attributable to ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating net income (loss) per ADS, basic and diluted.
11 Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
12 Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
13 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.
14 Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
15 Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
16 ADS refers to American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is net income (loss) attributable to ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating net income (loss) per ADS, basic and diluted.
17 Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
March 16, 2026 06:10 ET | Source: KE Holdings Inc.
BEIJING, March 16, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE and HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced that its board of directors (the “Board”) approved a final cash dividend (the “Dividend”) of US$0.092 per ordinary share, or US$0.276 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on April 8, 2026, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The aggregate amount of the Dividend to be paid will be approximately US$0.3 billion, which will be funded by cash surplus on the Company’s balance sheet.
For holders of ordinary shares, in order to qualify for the Dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong no later than 4:30 p.m. on April 8, 2026 (Beijing/Hong Kong Time). Dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement. The payment date is expected to be on or around April 21, 2026 for holders of ordinary shares and on or around April 24, 2026 for holders of ADSs.
In 2025, the Company remained committed to enhancing shareholder value through an efficient capital allocation strategy. The Company completed share repurchases with an aggregate total consideration of approximately US$921 million during the year.
Including the announced Dividend, the total shareholder return by the Company for 2025 reached approximately US$1.2 billion, up over 9% year over year. This reflects Beike’s proactive efforts to create and continuously enhance long-term value for all shareholders.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
I have retained a "Hold" rating for KE Holdings after analyzing its performance and prospects. Quarterly results were weak but met consensus. Its 4Q2025 revenue and net income were down 29% and 61%, respectively. BEKE's outlook is murky, considering a disappointing Q1 guide and a high probability of sustained shareholder returns.
KE Holdings remains a hold as core transaction volumes and revenues continue to decline sharply, with no imminent recovery in sight. Q4 results were weak: net revenues fell 28.7% y/y, GTV dropped 36.7%, and EBIT margin turned negative, reflecting broad-based pressure across key segments. Management maintains a neutral 2026 market outlook, and stabilization is not expected before 2027, limiting near-term re-rating potential.
KE Holdings Inc. Sponsored ADR (NYSE: BEKE - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors bought 20,045 put options on the company. This represents an increase of 464% compared to the typical daily volume of 3,553 put options. KE Stock Performance BEKE stock opened at $15.73 on Thursday. KE
Allspring Global Investments Holdings LLC boosted its stake in shares of KE Holdings Inc. Sponsored ADR (NYSE:BEKE – Free Report) by 91.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,598,706 shares of the company’s stock after purchasing an additional 1,241,387 shares during the period. Allspring Global Investments Holdings LLC owned about 0.23% of KE worth $41,735,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Strs Ohio purchased a new stake in KE during the first quarter valued at $44,000. EverSource Wealth Advisors LLC boosted its position in KE by 145.1% in the second quarter. EverSource Wealth Advisors LLC now owns 3,812 shares of the company’s stock worth $68,000 after purchasing an additional 2,257 shares during the last quarter. Franchise Capital Ltd purchased a new position in KE in the third quarter worth about $76,000. Parallel Advisors LLC grew its stake in shares of KE by 79.7% during the 3rd quarter. Parallel Advisors LLC now owns 5,180 shares of the company’s stock valued at $98,000 after purchasing an additional 2,298 shares during the period. Finally, Quantbot Technologies LP bought a new stake in shares of KE during the 2nd quarter valued at about $116,000. Hedge funds and other institutional investors own 39.34% of the company’s stock.
Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on BEKE shares. Barclays set a $23.00 price objective on shares of KE in a research note on Thursday, February 19th. The Goldman Sachs Group lowered shares of KE from a “buy” rating to a “neutral” rating and set a $19.00 target price for the company. in a research report on Monday, February 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of KE in a research report on Friday, March 27th. Finally, Wall Street Zen cut shares of KE from a “hold” rating to a “sell” rating in a research note on Sunday, March 22nd. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $21.63.
Check Out Our Latest Stock Report on KE
KE Stock Performance BEKE opened at $14.79 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.02 and a current ratio of 2.95. The stock has a market capitalization of $16.71 billion, a price-to-earnings ratio of 41.07, a PEG ratio of 2.48 and a beta of -0.53. The company has a fifty day moving average of $17.03 and a 200 day moving average of $17.33. KE Holdings Inc. Sponsored ADR has a fifty-two week low of $14.40 and a fifty-two week high of $22.25.
KE (NYSE:BEKE – Get Free Report) last released its quarterly earnings data on Sunday, February 15th. The company reported $0.02 EPS for the quarter. KE had a net margin of 3.15% and a return on equity of 4.70%. The business had revenue of $3.17 billion during the quarter. As a group, sell-side analysts forecast that KE Holdings Inc. Sponsored ADR will post 0.67 earnings per share for the current fiscal year.
KE Dividend Announcement The company also recently announced an annual dividend, which will be paid on Friday, April 24th. Stockholders of record on Wednesday, April 8th will be given a dividend of $0.276 per share. This represents a dividend yield of 167.0%. The ex-dividend date is Wednesday, April 8th. KE’s dividend payout ratio is currently 86.11%.
KE Company Profile (Free Report)
KE Holdings Inc (NYSE: BEKE) is a technology-driven real estate services company that operates an integrated online and offline platform for housing transactions and related services in mainland China. The company provides consumer-facing property listing marketplaces alongside a broad network of offline brokerage offices and agents, aiming to facilitate sales, rentals and new-home transactions for individual and institutional clients.
The company’s offerings span property listings for new and resale homes, rental listings, brokerage representation and transaction facilitation.
Recommended Stories Five stocks we like better than KE Want to see what other hedge funds are holding BEKE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for KE Holdings Inc. Sponsored ADR (NYSE:BEKE – Free Report).
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KE Holdings Inc. Sponsored ADR (NYSE:BEKE – Get Free Report) has received an average recommendation of “Moderate Buy” from the seven research firms that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $21.6333.
A number of research analysts recently issued reports on the company. The Goldman Sachs Group downgraded KE from a “buy” rating to a “neutral” rating and set a $19.00 price objective for the company. in a report on Monday, February 2nd. Barclays set a $23.00 target price on KE in a research note on Thursday, February 19th. Wall Street Zen cut shares of KE from a “hold” rating to a “sell” rating in a research note on Sunday, March 22nd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of KE in a report on Friday, March 27th.
Get Our Latest Analysis on KE
Hedge Funds Weigh In On KE Large investors have recently modified their holdings of the business. Bayforest Capital Ltd acquired a new stake in shares of KE in the fourth quarter valued at about $28,000. Caitong International Asset Management Co. Ltd boosted its position in KE by 330.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,280 shares of the company’s stock valued at $36,000 after purchasing an additional 1,750 shares during the last quarter. Strs Ohio acquired a new position in KE during the first quarter valued at approximately $44,000. Allworth Financial LP grew its stake in KE by 254.4% in the fourth quarter. Allworth Financial LP now owns 2,910 shares of the company’s stock valued at $46,000 after purchasing an additional 2,089 shares in the last quarter. Finally, Franchise GP Ltd acquired a new position in shares of KE during the 4th quarter worth approximately $63,000. 39.34% of the stock is currently owned by institutional investors and hedge funds.
KE Stock Performance Shares of KE stock opened at $14.79 on Friday. The stock’s fifty day simple moving average is $16.96 and its 200 day simple moving average is $17.28. The company has a current ratio of 2.95, a quick ratio of 3.02 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $16.71 billion, a PE ratio of 41.07, a PEG ratio of 2.47 and a beta of -0.53. KE has a 12 month low of $14.40 and a 12 month high of $22.25.
KE (NYSE:BEKE – Get Free Report) last announced its earnings results on Sunday, February 15th. The company reported $0.02 EPS for the quarter. KE had a net margin of 3.15% and a return on equity of 4.70%. The firm had revenue of $3.17 billion for the quarter. On average, research analysts predict that KE will post 0.67 EPS for the current year.
KE Dividend Announcement The firm also recently declared an annual dividend, which will be paid on Friday, April 24th. Shareholders of record on Wednesday, April 8th will be paid a $0.276 dividend. This represents a yield of 167.0%. The ex-dividend date is Wednesday, April 8th. KE’s payout ratio is presently 86.11%.
KE Company Profile (Get Free Report)
KE Holdings Inc (NYSE: BEKE) is a technology-driven real estate services company that operates an integrated online and offline platform for housing transactions and related services in mainland China. The company provides consumer-facing property listing marketplaces alongside a broad network of offline brokerage offices and agents, aiming to facilitate sales, rentals and new-home transactions for individual and institutional clients.
The company’s offerings span property listings for new and resale homes, rental listings, brokerage representation and transaction facilitation.
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April 24, 2026 06:27 ET | Source: KE Holdings Inc.
BEIJING, April 24, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE and HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced that it will hold an annual general meeting of the Company’s shareholders (the “AGM”) at 3:00 p.m. Beijing time on Friday, June 12, 2026 at Oriental Electronic Technology Building, No. 2 Chuangye Road, Haidian District, Beijing, PRC, for the purposes of considering and, if thought fit, passing each of the Proposed Resolutions as defined and set forth in the notice of the AGM (the “AGM Notice”). A circular of the Company dated April 24, 2026 in relation to the AGM, the AGM Notice and the form of proxy for the AGM are available on the Company’s website at https://investors.ke.com/. The board of directors of the Company fully supports the Proposed Resolutions and recommends that shareholders and holders of American depositary shares (“ADSs”) of the Company vote in favor of the Proposed Resolutions.
Holders of record of the Company’s ordinary shares as of the close of business on May 12, 2026, Hong Kong time, are entitled to receive notice of, and to attend and vote at, the AGM or any adjournment or postponement thereof. Holders of record of ADSs as of the close of business on May 12, 2026, New York time, who wish to exercise their voting rights for the underlying Class A ordinary shares must give voting instructions to The Bank of New York Mellon, the depositary of the ADSs, if the ADSs are held by holders on the books and records of the depositary, or indirectly through a bank, brokerage or other securities intermediary, if the ADSs are held by any of them on behalf of holders of the ADSs.
The Company has filed its annual report on Form 20-F, including its audited financial statements, for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s annual report on Form 20-F can be accessed on the Company’s website at https://investors.ke.com/ and on the SEC’s website at https://www.sec.gov.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Beike may also make written or oral forward-looking statements in its periodic reports to the SEC and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike’s platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
April 24, 2026 07:13 ET | Source: KE Holdings Inc.
BEIJING, April 24, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE and HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission on April 24, 2026. The annual report can be accessed on the Company’s investor relations website at https://investors.ke.com.
The Company will provide a hard copy of its annual report containing the audited consolidated financial statements, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to the Company’s Investor Relations Department at [email protected].
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
April 24, 2026 07:14 ET | Source: KE Holdings Inc.
BEIJING, April 24, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today released its 2025 Environmental, Social and Governance report (the “2025 ESG Report”), highlighting Beike’s ongoing efforts to strengthen its governance framework, enhance residential service experiences, empower industry participants through technology, and contribute to a sustainable future for the value chain, all underpinned by its mission of “Admirable service, joyful living.”
Mr. Stanley Yongdong Peng, Co-founder, Chairman of the Board, and Chief Executive Officer of Beike, commented, “The true significance of Beike lies in the responsibility we choose to undertake for society. This requires us to always put consumer value at the core, collaborate with partners across the value chain to foster a virtuous industry cycle, and actively contribute to a more transparent, well-organized, and sustainable industry ecosystem. We believe this is how Beike creates sustainable value for our shareholders.”
Highlights of Beike’s 2025 ESG Achievements:
Strengthening Corporate Governance
Beike continued to reinforce a fair and transparent governance system. The Company incorporated key ESG metrics into executive performance appraisals. Specifically, the remuneration of the Chairman, core management, and key executives is directly linked to climate-related targets, reinforcing accountability for long-term sustainable value creation. In terms of data security, in 2025, Beike’s apps for consumer-end users all obtained authoritative information security certifications from China or international organizations.
Enhancing Service Quality
Beike continued to enhance its consumer protection framework across the service value chain. The Company launched its “3+3” platform-level service commitments for its home transaction services and rolled out transaction fund safety and risk compensation mechanisms in multiple cities. For home renovation and furnishing services, the Company implemented an innovative renovation fund custody model, under which funds are disbursed in installments upon phased acceptance to safeguard customer funds. In 2025, this model was rolled out across 43 cities nationwide, with over 90% of users adopting the custody arrangement.
Professional Development for Service Providers
Beike established a comprehensive and differentiated talent development system, providing agents, store owners, home renovation and home rental service providers with clear career pathways and robust professional capability support, thereby facilitating their professional transformation and value enhancement. In particular, Beike implemented a full-lifecycle training system for Lianjia agents, covering key stages of their career from onboarding and development to targeted upskilling and leadership training, achieving a training coverage rate of over 99% and a total learning duration of more than 2.89 million hours in 2025.
Empowering Services with Technology
Beike leverages technology as a core engine to transform traditional business processes, enhancing customer experience, empowering service providers, and improving overall operational efficiency. For example, in home renovation and furnishing services, through the application of AI-powered BIM design tools, proposal preparation time was reduced to 15 minutes from four hours, significantly improving efficiency and customer satisfaction. In home rental services, the Company launched an AI-powered home-seeking assistant that enhances the rental experience through intelligent matching, AI-generated listing insights, and real-time support.
Low-Carbon Operations and Environmental Management
Beike continued to strengthen its own green and low-carbon management by building an integrated carbon management system with a 95% digitization rate, which supports accurate accounting of greenhouse gas emissions. In addition, the Company established management measures for Lianjia stores to respond to extreme weather events, enhancing emergency response, strengthening operational resilience, and improving business continuity and service stability. In line with new regulations of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), the Company also disclosed climate scenario analysis and financial impact assessments in its ESG Report.
The Company’s 2025 ESG Report is available in both English and Chinese. To support environmental conservation, it is strongly recommended to use the electronic version, accessible on the Company’s investor relations website at https://investors.ke.com/governance/sustainability.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike’s platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
BEIJING, May 07, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced that it will report its unaudited financial results for the first quarter 2026 before the U.S. market opens on Tuesday, May 19, 2026.
The Company’s management will hold an earnings conference call at 8:00 A.M. Eastern Time on Tuesday, May 19, 2026 (8:00 P.M. Beijing Time on Tuesday, May 19, 2026).
For participants who wish to join the conference using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering.
Participant Online Registration:
English Line: https://s1.c-conf.com/diamondpass/10054238-3nd54a.html
Chinese Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10054239-fn5s21.html
A replay of the conference call will be accessible through May 26, 2026, by dialing the following numbers:
United States:+1-855-883-1031Mainland, China:400-1209-216Hong Kong, China:800-930-639International:+61-7-3107-6325Replay PIN (English line):10054238Replay PIN (Chinese simultaneous interpretation line):10054239
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://investors.ke.com.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
For more information, please visit: https://investors.ke.com.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
BEIJING, May 15, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today provides an update to the dial-in of its first quarter 2026 earnings call.
Further to its press release dated May 7, 2026 (the “Press Release”), the Company updates that the earnings conference call, scheduled for 8:00 A.M. U.S. Eastern Time or 8:00 P.M. Beijing/Hong Kong Time on Tuesday, May 19, 2026, will be conducted in Chinese with English simultaneous interpretation.
For participants who wish to join the conference using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering.
Participant Online Registration:
Chinese Line: https://s1.c-conf.com/diamondpass/10054239-fn5s21.html
English Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10054238-3nd54a.html
A replay of the conference call will be accessible through May 26, 2026, by dialing the following numbers:
United States:+1-855-883-1031Mainland, China:400-1209-216Hong Kong, China:800-930-639International:+61-7-3107-6325Replay PIN (Chinese line):10054239Replay PIN (English simultaneous interpretation line):10054238
Except the updates as disclosed above, all other information contained in the Press Release remains unchanged. This notice is supplemental to and should be read in conjunction with the Press Release.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
For more information, please visit: https://investors.ke.com.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
BEIJING, May 19, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the first quarter ended March 31, 2026.
Business and Financial Highlights for the First Quarter 2026
Gross transaction value (GTV)1 was RMB711.7 billion (US$103.2 billion), a decrease of 15.6% year-over-year. GTV of existing home transactions was RMB534.4 billion (US$77.5 billion), a decrease of 7.9% year-over-year. GTV of new home transactions was RMB145.9 billion (US$21.2 billion), a decrease of 37.2% year-over-year.Net revenues were RMB18.9 billion (US$2.7 billion), a decrease of 19.0% year-over-year.Net income was RMB1,255 million (US$182 million), an increase of 46.7% year-over-year. Adjusted net income2 was RMB1,611 million (US$234 million), an increase of 15.7% year-over-year.Number of stores was 60,383 as of March 31, 2026, a 6.2% increase from one year ago. Number of active stores3 was 57,666 as of March 31, 2026, a 4.4% increase from one year ago.Number of agents was 526,945 as of March 31, 2026, a 4.2% decrease from one year ago. Number of active agents4 was 453,438 as of March 31, 2026, a 7.6% decrease from one year ago.Mobile monthly active users (MAU)5 averaged 42.7 million in the first quarter of 2026, compared to 44.5 million in the same period of 2025. Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “In the first quarter of 2026, we observed positive marginal changes in the real estate market. We also continued to advance efficiency-driven growth, with significant improvements in both operating quality and profitability. Our performance in this quarter reflected our ongoing efforts to enhance resource allocation, organizational efficiency and service quality, and also laid a foundation for the Company to further transition from scale-driven growth to efficiency-driven growth, and from transaction matching to decision-making services. Looking ahead, we will continue to focus on helping consumers make higher-quality residential decisions, enhance the professional capabilities of service providers, organizational efficiency and AI-enabled capabilities, and strive to achieve higher-quality and more sustainable development.”
Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In the first quarter of 2026, the Company’s operating quality improved significantly year-over-year. A series of initiatives we have undertaken around resource allocation efficiency, cost structure and unit economics translated into healthier profitability. In the first quarter, both our gross margin and adjusted operating margin reached their highest levels in the past seven quarters.
In the first quarter, we further enhanced shareholder returns by repurchasing approximately US$195 million of our shares, representing a year-over-year increase of approximately 40%. Looking ahead, we will continue to focus on improving customer experience and service provider efficiency, optimizing resource allocation, and further strengthening the Company’s operating efficiency and resilience, while creating long-term, sustainable value for consumers, service providers and shareholders.”
First Quarter 2026 Financial Results
Net Revenues
Net revenues decreased by 19.0% to RMB18.9 billion (US$2.7 billion) in the first quarter of 2026 from RMB23.3 billion in the same period of 2025, primarily attributable to the high base of net revenues from new home and existing home transaction services.
Net revenues from existing home transaction services decreased by 10.7% to RMB6.1 billion (US$0.9 billion) in the first quarter of 2026 from RMB6.9 billion in the same period of 2025, primarily due to a high base effect for GTV of existing home transactions, which decreased by 7.9% to RMB534.4 billion (US$77.5 billion) in the first quarter of 2026 from RMB580.3 billion in the same period of 2025.Among that, (i) commission revenue decreased by 14.1% to RMB4.8 billion (US$0.7 billion) in the first quarter of 2026 from RMB5.6 billion in the same period of 2025, primarily due to a 14.8% decrease in GTV of existing home transactions served by Lianjia stores to RMB188.7 billion (US$27.4 billion) in the first quarter of 2026 from RMB221.4 billion in the same period of 2025; and
(ii) revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on the Company’s platform, increased by 3.8% to RMB1,340 million (US$194 million) in the first quarter of 2026 from RMB1,291 million in the same period of 2025, primarily due to the increased revenues from certain value-added services which were less directly linked to GTV. This was partially offset by a 3.7% decrease in the GTV of existing home transactions served by connected agents on the Company’s platform to RMB345.7 billion (US$50.1 billion) in the first quarter of 2026 from RMB358.9 billion in the same period of 2025.
Net revenues from new home transaction services decreased by 37.0% to RMB5.1 billion (US$0.7 billion) in the first quarter of 2026 from RMB8.1 billion in the same period of 2025, primarily due to a high base effect for GTV of new home transactions in the same period of 2025, which decreased by 37.2% to RMB145.9 billion (US$21.2 billion) in the first quarter of 2026 from RMB232.2 billion in the same period of 2025. Of these, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise in new home transaction services and other sales channels decreased by 37.5% to RMB119.9 billion (US$17.4 billion) in the first quarter of 2026 from RMB192.0 billion in the same period of 2025, while the GTV of new home transactions served by Lianjia brand decreased by 35.4% to RMB26.0 billion (US$3.8 billion) in the first quarter of 2026 from RMB40.3 billion in the same period of 2025.Net revenues from home renovation and furnishing decreased by 20.6% to RMB2.3 billion (US$0.3 billion) in the first quarter of 2026 from RMB2.9 billion in the same period of 2025, as the Company proactively optimized the channel mix in customer acquisition and moderated pace of certain non-brokerage channels.Net revenues from home rental services decreased by 1.5% to RMB5.0 billion (US$0.7 billion) in the first quarter of 2026 from RMB5.1 billion in the same period of 2025, primarily due to the impact of an increasing proportion of new service offerings within the Carefree Rent business. Under the new model, revenue is recognized based on net service fees derived from two sources: (1) commissions earned for facilitating the signing of lease agreements between homeowners and tenants; and (2) fees for lease term management services rendered throughout the lease period. The decrease was partially offset by the increase in the number of rental units under the Carefree Rent model. Net revenues from emerging and other services decreased by 8.1% to RMB321 million (US$47 million) in the first quarter of 2026 from RMB350 million in the same period of 2025, primarily due to the decrease of revenues from ancillary services.
Cost of Revenues
Total cost of revenues decreased by 22.6% to RMB14.3 billion (US$2.1 billion) in the first quarter of 2026 from RMB18.5 billion in the same period of 2025.
Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels decreased by 38.2% to RMB3.5 billion (US$0.5 billion) in the first quarter of 2026 from RMB5.7 billion in the same period of 2025, primarily due to the decrease in GTV of new home transactions facilitated through connected agents and other sales channels.Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation decreased by 17.9% to RMB4.0 billion (US$0.6 billion) in the first quarter of 2026 from RMB4.8 billion in the same period of 2025, primarily attributable to the decrease in commission of Lianjia agents, consistent with the decreased GTV of existing and new home transactions they served, as well as the decreased fixed personnel costs due to the Company's disciplined headcount control. Cost of home renovation and furnishing. The Company’s cost of revenues for home renovation and furnishing was RMB1.5 billion (US$0.2 billion) in the first quarter of 2026, a decrease of 24.9% from RMB2.0 billion in the same period of 2025, primarily due to lower net revenues from home renovation and furnishing. Meanwhile, enhanced supply chain capabilities helped reduce material costs and improve the contribution margin of the home renovation and furnishing business.Cost of home rental services. The Company’s cost of revenues for home rental services, which mainly consists of variable cost, decreased by 10.0% to RMB4.3 billion (US$0.6 billion) in the first quarter of 2026 from RMB4.7 billion in the same period of 2025. Despite relatively stable year-over-year revenue performance for home rental services in the first quarter of 2026, the segment achieved a notable uplift in contribution margin, driven primarily by the continuous increase in the proportion of high-margin new service offerings under Carefree Rent business. In addition, improved operational efficiency, further optimized the overall cost structure and supported healthier profitability.Cost related to stores. The Company’s cost related to stores decreased by 20.3% to RMB0.6 billion (US$0.1 billion) in the first quarter of 2026 from RMB0.7 billion in the same period of 2025, primarily attributable to Lianjia store optimization. Other costs. The Company’s other costs decreased by 5.0% to RMB520 million (US$75 million) in the first quarter of 2026 from RMB547 million in the same period of 2025, primarily attributable to the decreased taxes and surcharges, which was in line with the trend in net revenues.
Gross Profit
Gross profit decreased by 5.4% to RMB4.6 billion (US$0.7 billion) in the first quarter of 2026 from RMB4.8 billion in the same period of 2025. Gross margin increased to 24.1% in the first quarter of 2026 from 20.7% in the same period of 2025, primarily due to a) higher contribution of net revenues from existing home transaction services, which historically carried higher contribution margins than other revenue streams, b) a higher contribution margin of existing home transaction services, primarily attributable to the decreased fixed personnel costs driven by cost optimization, and c) the improved contribution margin of home rental services.
Income from Operations
Total operating expenses decreased by 22.3% to RMB3.3 billion (US$0.5 billion) in the first quarter of 2026 from RMB4.2 billion in the same period of 2025, primarily due to the Company’s cost optimization initiatives.
General and administrative expenses decreased by 8.6% to RMB1.7 billion (US$0.2 billion) in the first quarter of 2026 from RMB1.9 billion in the same period of 2025, primarily due to the decrease in share-based compensation expenses.Sales and marketing expenses decreased by 39.0% to RMB1.1 billion (US$0.2 billion) in the first quarter of 2026 from RMB1.8 billion in the same period of 2025, primarily due to the Company’s cost optimization initiatives, including lower personnel costs and reduced advertising and promotion expenses, as well as the decreased scale-driven variable selling expenses of home renovation and furnishing.Research and development expenses decreased by 15.6% to RMB493 million (US$71 million) in the first quarter of 2026 from RMB584 million in the same period of 2025, primarily due to the Company’s cost optimization initiatives.
Income from operations was RMB1,273 million (US$185 million) in the first quarter of 2026, compared to income from operations of RMB591 million in the same period of 2025. Operating margin increased to 6.7% in the first quarter of 2026 from 2.5% in the same period of 2025, primarily due to the increased gross profit margin and improved operating leverage.
Adjusted income from operations6 was RMB1,665 million (US$241 million) in the first quarter of 2026, compared to RMB1,148 million in the same period of 2025. Adjusted operating margin7 was 8.8% in the first quarter of 2026, compared to 4.9% in the same period of 2025. Adjusted EBITDA8 was RMB2,235 million (US$324 million) in the first quarter of 2026, compared to RMB1,842 million in the same period of 2025.
Net Income
Net income increased by 46.7% to RMB1,255 million (US$182 million) in the first quarter of 2026 from RMB855 million in the same period of 2025.
Adjusted net income increased by 15.7% to RMB1,611 million (US$234 million) in the first quarter of 2026, from RMB1,393 million in the same period of 2025.
Net Income attributable to KE Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB1,255 million (US$182 million) in the first quarter of 2026, compared to RMB856 million in the same period of 2025.
Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB1,612 million (US$234 million) in the first quarter of 2026, compared to RMB1,393 million in the same period of 2025.
Net Income per ADS
Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders10 were RMB1.15 (US$0.17) and RMB1.11 (US$0.16) in the first quarter of 2026, respectively, compared to basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders of RMB0.76 and RMB0.73 in the same period of 2025, respectively.
Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders11 were RMB1.48 (US$0.21) and RMB1.42 (US$0.20) in the first quarter of 2026, respectively, compared to RMB1.24 and RMB1.19 in the same period of 2025, respectively.
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments
As of March 31, 2026, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB53.9 billion (US$7.8 billion).
Share Repurchase Program
As previously disclosed, the Company established a share repurchase program in August 2022 and upsized and extended it in August 2023, August 2024 and August 2025, under which the Company may purchase up to US$5 billion of its Class A ordinary shares and/or ADSs until August 31, 2028, subject to obtaining general unconditional mandate for the repurchase from the shareholders of the Company at each of the next three annual general meetings to be held in the forthcoming years to continue its share repurchase after the expiry of the existing share repurchase mandate granted by the annual general meeting held on June 27, 2025. As of March 31, 2026, the Company in aggregate has purchased approximately 171.2 million ADSs (representing approximately 513.6 million Class A ordinary shares) on the New York Stock Exchange with a total consideration of approximately US$2,741.7 million under this share repurchase program since its launch.
Conference Call Information
The Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Tuesday, May 19, 2026 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, May 19, 2026) to discuss the financial results.
For participants who wish to join the conference call using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering.
Participant Online Registration:
Chinese Line: https://s1.c-conf.com/diamondpass/10054239-fn5s21.html
English Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10054238-3nd54a.html
A replay of the conference call will be accessible through May 26, 2026, by dialing the following numbers:
United States:+1-855-883-1031Mainland, China:400-1209-216Hong Kong, China:800-930-639International:+61-7-3107-6325Replay PIN (Chinese line):10054239Replay PIN (English simultaneous interpretation line):10054238 A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://investors.ke.com.
Exchange Rate
This press release contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.8980 to US$1.00, the noon buying rate in effect on March 31, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial information contained in this earnings release.
Non-GAAP Financial Measures
The Company uses adjusted income (loss) from operations, adjusted net income (loss), adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, adjusted operating margin, adjusted EBITDA and adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders, each a non-GAAP financial measure, in evaluating its operating results and formulating its business plan. Beike believes that these non-GAAP financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its net income (loss). Beike also believes that these non-GAAP financial measures provide useful information about its results of operations, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in formulating its business plan. A limitation of using these non-GAAP financial measures is that these non-GAAP financial measures exclude share-based compensation expenses that have been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business. The Group recognized fair value loss and impairment in relation to its investments in Beihaojia business. As such impairment does not represent a non-recurring item, it has not been excluded when calculating Non‑GAAP financial measures.
The presentation of these non-GAAP financial measures should not be considered in isolation or construed as an alternative to gross profit, net income (loss) or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review these non-GAAP financial measures and the reconciliation to the most directly comparable GAAP measures. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Beike encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted income (loss) from operations is defined as income (loss) from operations, excluding (i) share-based compensation expenses, and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement. Adjusted operating margin is defined as adjusted income (loss) from operations as a percentage of net revenues. Adjusted net income (loss) is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of investments, and (v) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of investments, (v) tax effects of the above non-GAAP adjustments, and (vi) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Adjusted EBITDA is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, and (vii) impairment of investments. Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted.
Please see the “Unaudited reconciliation of GAAP and non-GAAP results” included in this press release for a full reconciliation of each non-GAAP measure to its respective comparable GAAP measure.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Among other things, the quotations from management in this press release, as well as Beike’s strategic and operational plans, contain forward-looking statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please visit: https://investors.ke.com.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
Source: KE Holdings Inc.
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share, per share data)
As of
December 31, As of
March 31, 2025 2026 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 7,773,182 11,074,476 1,605,462Restricted cash 8,170,605 8,901,929 1,290,509Short-term investments 39,579,961 33,911,411 4,916,122Financing receivables, net of allowance for credit losses of RMB174,478 and RMB177,785 as of December 31, 2025 and March 31, 2026, respectively 1,353,682 2,104,898 305,146Accounts receivable and contract assets, net of allowance for credit losses of RMB1,612,202 and RMB1,647,075 as of December 31, 2025 and March 31, 2026, respectively 3,936,976 4,037,061 585,251Amounts due from and prepayments to related parties 409,867 402,819 58,396Short-term loan receivables from related parties 315,755 78,794 11,423Inventories 2,854,034 2,800,860 406,039Prepayments, receivables and other assets 3,726,128 3,770,401 546,593Total current assets 68,120,190 67,082,649 9,724,941Non-current assets Property, plant and equipment, net 2,069,624 1,962,709 284,533Right-of-use assets 19,144,129 16,173,939 2,344,729Long-term investments, net 20,148,524 19,822,114 2,873,603Intangible assets, net 722,676 691,085 100,186Goodwill 4,660,360 4,660,360 675,610Long-term loan receivables from related parties 39,573 19,935 2,890Other non-current assets 1,763,102 1,903,273 275,917Total non-current assets 48,547,988 45,233,415 6,557,468TOTAL ASSETS 116,668,178 112,316,064 16,282,409 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share data)
As of
December 31, As of
March 31, 2025 2026 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 6,052,129 5,002,359 725,190Amounts due to related parties 348,467 338,597 49,086Short-term loan payable to related parties 497,939 678,095 98,303Employee compensation and welfare payable 6,504,197 3,905,833 566,227Customer deposits payable 4,157,248 5,326,103 772,123Income taxes payable 702,607 890,947 129,160Short-term borrowings 207,717 139,387 20,207Lease liabilities current portion 10,658,576 8,933,570 1,295,096Contract liabilities and deferred revenue 5,690,293 6,166,467 893,950Accrued expenses and other current liabilities 7,588,077 9,665,273 1,401,170Total current liabilities 42,407,250 41,046,631 5,950,512Non-current liabilities Deferred tax liabilities 317,209 317,209 45,986Lease liabilities non-current portion 6,969,571 5,743,608 832,648Long-term borrowings 182,917 215,062 31,177Long-term loan payable to related parties 259,249 561,249 81,364Other non-current liabilities 2,148 2,050 297Total non-current liabilities 7,731,094 6,839,178 991,472TOTAL LIABILITIES 50,138,344 47,885,809 6,941,984 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share data)
As of
December 31, As of
March 31, 2025
2026
RMB RMB US$ SHAREHOLDERS’ EQUITY KE Holdings Inc. shareholders’ equity Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 24,114,698,720 Class A ordinary shares and 885,301,280 Class B ordinary shares. 3,366,778,024 Class A ordinary shares issued and 3,233,808,859 Class A ordinary shares outstanding(1) as of December 31, 2025; 3,391,029,167 Class A ordinary shares issued and 3,227,105,126 Class A ordinary shares outstanding(1) as of March 31, 2026; and 139,447,770 and 138,588,377 Class B ordinary shares issued and outstanding as of December 31, 2025 and March 31, 2026, respectively) 450 451 65 Treasury shares (848,433) (1,354,868) (196,415)Additional paid-in capital 64,802,176 62,598,048 9,074,811 Statutory reserves 1,054,872 1,054,872 152,924 Accumulated other comprehensive income 290,029 20,436 2,963 Retained earnings 1,142,194 2,052,803 297,594 Total KE Holdings Inc. shareholders' equity 66,441,288 64,371,742 9,331,942 Non-controlling interests 88,546 58,513 8,483 TOTAL SHAREHOLDERS' EQUITY 66,529,834 64,430,255 9,340,425 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 116,668,178 112,316,064 16,282,409 (1) Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs.
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$ Net revenues Existing home transaction services6,870,407 6,132,034 888,958 New home transaction services8,074,995 5,086,868 737,441 Home renovation and furnishing2,945,443 2,339,098 339,098 Home rental services5,087,776 5,012,701 726,689 Emerging and other services349,726 321,276 46,575 Total net revenues23,328,347 18,891,977 2,738,761 Cost of revenues Commission-split(5,693,140) (3,519,769) (510,259)Commission and compensation-internal(4,818,277) (3,957,380) (573,700)Cost of home renovation and furnishing(1,985,956) (1,492,188) (216,322)Cost of home rental services(4,746,056) (4,271,229) (619,198)Cost related to stores(716,809) (571,498) (82,850)Others(547,217) (519,938) (75,375)Total cost of revenues(1)(18,507,455) (14,332,002) (2,077,704)Gross profit4,820,892 4,559,975 661,057 Operating expenses Sales and marketing expenses(1)(1,772,957) (1,082,144) (156,878)General and administrative expenses(1)(1,873,760) (1,712,546) (248,267)Research and development expenses(1)(583,610) (492,565) (71,407)Total operating expenses(4,230,327) (3,287,255) (476,552)Income from operations590,565 1,272,720 184,505 Interest income, net268,568 134,947 19,563 Share of results of equity investees7,345 (16,402) (2,378)Fair value changes in investments, net110,486 135,781 19,684 Impairment loss for equity investments accounted for using Measurement Alternative- (571) (83)Foreign currency exchange loss(39,633) (1,463) (212)Other income, net445,447 306,712 44,464 Income before income tax expense1,382,778 1,831,724 265,543 Income tax expense(527,455) (576,647) (83,596)Net income 855,323 1,255,077 181,947 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)
(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$ Net loss attributable to non-controlling interests shareholders444 414 60 Net income attributable to KE Holdings Inc.855,767 1,255,491 182,007 Net income attributable to KE Holdings Inc.’s ordinary shareholders855,767 1,255,491 182,007 Net income 855,323 1,255,077 181,947 Currency translation adjustments(23,695) (275,482) (39,937)Unrealized gains on available-for-sale investments, net of reclassification31,475 5,889 854 Total comprehensive income 863,103 985,484 142,864 Comprehensive loss attributable to non-controlling interests shareholders444 414 60 Comprehensive income attributable to KE Holdings Inc.863,547 985,898 142,924 Comprehensive income attributable to KE Holdings Inc.’s ordinary shareholders863,547 985,898 142,924 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)
(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$ Weighted average number of ordinary shares used in computing net income per share, basic and diluted —Basic3,362,716,016 3,275,963,218 3,275,963,218—Diluted3,522,002,071 3,402,938,108 3,402,938,108 Weighted average number of ADS used in computing net income per ADS, basic and diluted —Basic1,120,905,339 1,091,987,739 1,091,987,739—Diluted1,174,000,690 1,134,312,703 1,134,312,703 Net income per share attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.25 0.38 0.06—Diluted0.24 0.37 0.05 Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.76 1.15 0.17—Diluted0.73 1.11 0.16 (1) Includes share-based compensation expenses as follows:Cost of revenues109,558 96,172 13,942Sales and marketing expenses45,295 39,783 5,767General and administrative expenses331,203 205,540 29,797Research and development expenses41,113 24,557 3,560 KE Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$ Income from operations590,565 1,272,720 184,505 Share-based compensation expenses527,169 366,052 53,066 Amortization of intangible assets resulting from acquisitions and business cooperation agreement29,883 26,684 3,868 Adjusted income from operations1,147,617 1,665,456 241,439 Net income855,323 1,255,077 181,947 Share-based compensation expenses527,169 366,052 53,066 Amortization of intangible assets resulting from acquisitions and business cooperation agreement29,883 26,684 3,868 Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration(13,084) (30,329) (4,397)Impairment of investments- 571 83 Tax effects on non-GAAP adjustments(6,494) (6,602) (957)Adjusted net income 1,392,797 1,611,453 233,610 Net income 855,323 1,255,077 181,947 Income tax expense527,455 576,647 83,596 Share-based compensation expenses527,169 366,052 53,066 Amortization of intangible assets35,171 31,579 4,578 Depreciation of property, plant and equipment178,254 170,018 24,647 Interest income, net(268,568) (134,947) (19,563)Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration(13,084) (30,329) (4,397)Impairment of investments- 571 83 Adjusted EBITDA1,841,720 2,234,668 323,957 Net income attributable to KE Holdings Inc.’s ordinary shareholders855,767 1,255,491 182,007 Share-based compensation expenses527,169 366,052 53,066 Amortization of intangible assets resulting from acquisitions and business cooperation agreement29,883 26,684 3,868 Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration(13,084) (30,329) (4,397)Impairment of investments- 571 83 Tax effects on non-GAAP adjustments(6,494) (6,602) (957)Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders(7) - - Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders1,393,234 1,611,867 233,670 KE Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Continued)
(All amounts in thousands, except for share, per share data, ADS and per ADS data)
For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$ Weighted average number of ADS used in computing net income per ADS, basic and diluted —Basic1,120,905,339 1,091,987,739 1,091,987,739—Diluted1,174,000,690 1,134,312,703 1,134,312,703 Weighted average number of ADS used in calculating adjusted net income per ADS, basic and diluted —Basic1,120,905,339 1,091,987,739 1,091,987,739—Diluted1,174,000,690 1,134,312,703 1,134,312,703 Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.76 1.15 0.17—Diluted0.73 1.11 0.16 Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic0.48 0.33 0.04—Diluted0.46 0.31 0.04 Adjusted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders —Basic1.24 1.48 0.21—Diluted1.19 1.42 0.20 KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(All amounts in thousands)
For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$ Net cash used in operating activities(3,965,271) (1,471,302) (213,296)Net cash provided by investing activities6,285,669 5,013,815 726,849 Net cash provided by financing activities261,073 502,878 72,902 Effect of exchange rate change on cash, cash equivalents and restricted cash35,500 (12,773) (1,848)Net increase in cash, cash equivalents and restricted cash2,616,971 4,032,618 584,607 Cash, cash equivalents and restricted cash at the beginning of the period20,301,414 15,943,787 2,311,364 Cash, cash equivalents and restricted cash at the end of the period22,918,385 19,976,405 2,895,971 KE Holdings Inc.
UNAUDITED SEGMENT CONTRIBUTION MEASURE
(All amounts in thousands) For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$Existing home transaction services Net revenues 6,870,407 6,132,034 888,958 Commission and compensation (4,252,291) (3,598,676) (521,698)Contribution 2,618,116 2,533,358 367,260 New home transaction services Net revenues 8,074,995 5,086,868 737,441 Commission and compensation (6,185,772) (3,778,272) (547,734)Contribution 1,889,223 1,308,596 189,707 Home renovation and furnishing Net revenues 2,945,443 2,339,098 339,098 Material costs, commission and compensation (1,985,956) (1,492,188) (216,322)Contribution 959,487 846,910 122,776 Home rental services Net revenues 5,087,776 5,012,701 726,689 Property leasing costs, commission and compensation (4,746,056) (4,271,229) (619,198)Contribution 341,720 741,472 107,491 Emerging and other services Net revenues 349,726 321,276 46,575 Commission and compensation (73,354) (100,201) (14,527)Contribution 276,372 221,075 32,048 KE Holdings Inc.
UNAUDITED SEGMENT CONTRIBUTION MEASURE (Continued)
(All amounts in thousands) For the Three Months Ended March 31,
2025 March 31,
2026 March 31,
2026 RMB RMB US$Reconciliation of profit Cost related to stores (716,809) (571,498) (82,850)Other costs (547,217) (519,938) (75,375)Amounts not allocated to segment: Sales and marketing expenses (1,772,957) (1,082,144) (156,878)General and administrative expenses (1,873,760) (1,712,546) (248,267)Research and development expenses (583,610) (492,565) (71,407)Total operating expenses (4,230,327) (3,287,255) (476,552)Income from operations 590,565 1,272,720 184,505 _______________________________
1 GTV for a given period is calculated as the total value of all transactions which the Company facilitated on the Company’s platform and evidenced by signed contracts as of the end of the period, including the value of the existing home transactions, new home transactions, home renovation and furnishing and emerging and other services (excluding home rental services), and including transactions that are contracted but pending closing at the end of the relevant period. For the avoidance of doubt, for transactions that failed to close afterwards, the corresponding GTV represented by these transactions will be deducted accordingly.
2 Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of investments, and (v) tax effects of the above non-GAAP adjustments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
3 Based on our accumulated operational experience, we have introduced the operating metrics of number of active stores and number of active agents on our platform, which can better reflect the operational activeness of stores and agents on our platform.
“Active stores” as of a given date is defined as stores on our platform excluding the stores which (i) have not facilitated any housing transaction during the preceding 60 days, (ii) do not have any agent who has engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding seven days, or (iii) have not been visited by any agent during the preceding 14 days. The number of active stores was 55,210 as of March 31, 2025.
4 “Active agents” as of a given date is defined as agents on our platform excluding the agents who (i) delivered notice to leave but have not yet completed the exit procedures, (ii) have not engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding 30 days, or (iii) have not participated in facilitating any housing transaction during the preceding three months. The number of active agents was 490,862 as of March 31, 2025.
5 “Mobile monthly active users” or “mobile MAU” are to the sum of (i) the number of accounts that have accessed our platform through our Beike or Lianjia mobile app (with duplication eliminated) at least once during a month, and (ii) the number of Weixin users that have accessed our platform through our Weixin Mini Programs at least once during a month. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile MAUs for each month of such period, by (ii) the number of months in such period.
6 Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations, excluding (i) share-based compensation expenses, and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
7 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.
8 Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, and (vii) impairment of investments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
9 Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of investments, (v) tax effects of the above non-GAAP adjustments, and (vi) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
10 ADS refers to American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is net income (loss) attributable to ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating net income (loss) per ADS, basic and diluted.
11 Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
100% Upside in This Real Estate Stock, Institutions Buying InKE NYSE: BEKE reported a sharp improvement in first-quarter profitability despite lower transaction volume and revenue, as management said cost controls, operating efficiency gains and higher contribution margins across core businesses helped offset a softer year-over-year property market comparison.
On the company’s first-quarter 2026 earnings call, Tao Xu, executive director and chief financial officer, said non-GAAP operating profit rose 45.1% year-over-year to CNY 1.67 billion, while non-GAAP operating margin reached 8.8%, the highest level in seven quarters. GAAP net income increased 46.7% year-over-year to CNY 1.26 billion, and non-GAAP net income rose 15.7% to CNY 1.61 billion.
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Xu said the quarter reflected “structural improvement rather than a cyclical one,” citing cost structure optimization in 2025, more refined management and technology-driven productivity improvements. Total gross transaction value, or GTV, declined 15.6% year-over-year to CNY 711.2 billion, and revenue fell 19% to CNY 18.9 billion, reflecting a high base in the prior-year period.
Margins Improve as Revenue Declines KE’s gross margin expanded to 24.1%, up 3.5 percentage points from a year earlier and 2.7 percentage points sequentially. Xu attributed the year-over-year improvement to higher contribution from rental services, a more favorable mix toward existing-home transactions and improved contribution margin in existing-home services.
Total GAAP operating expenses fell 22.3% year-over-year to CNY 3.3 billion, which Xu said was the lowest level in nearly three years. Sales and marketing expenses declined 39%, general and administrative expenses fell 8.6%, and research and development expenses decreased 15.6%.
Xu said the company spent approximately $195 million on share repurchases during the quarter, which he said reflected both shareholder returns and management’s confidence in the company’s medium- to long-term development. He also said KE’s broader cash balances, excluding customer deposits, stood at approximately CNY 65.6 billion.
Existing-Home Business Shows Resilience Existing-home transaction services remained KE’s largest business line by GTV. First-quarter GTV in the segment was CNY 534.4 billion, down 7.9% year-over-year but up 10.9% quarter-over-quarter. Revenue from existing-home transaction services was CNY 6.1 billion, down 10.7% year-over-year and up 12.7% sequentially.
Xu said the segment’s contribution margin reached 41.3%, the highest level in seven quarters, driven by lower fixed labor costs following optimization of Lianjia’s agent and store scale and improved organizational efficiency.
Stanley Peng, co-founder, chairman and chief executive officer, said the existing-home market saw a “noticeable spring rebound” after Chinese New Year, with improved transaction momentum, buyer decisiveness and seller sentiment. He cautioned, however, that the market remains in a phase of structural adjustment and confidence rebuilding.
In response to a question from Jefferies analyst Thomas Chong, Xu said the latest recovery differed from prior rebounds because it was not solely driven by short-term policy stimulus, because prices had shown signs of stabilization, and because seller expectations and supply mix were improving. He said existing-home transactions on KE’s platform grew 12% year-over-year in the first quarter, while March set a new monthly record, up 21% year-over-year.
New Homes, Renovation and Rental Businesses New-home transaction services saw a steeper year-over-year decline. GTV fell 37.2% to CNY 145.9 billion, while revenue declined 37% to CNY 5.1 billion. Xu said the segment’s contribution margin rose 2.3 percentage points year-over-year to 25.7%, supported by cost structure optimization and refined operations.
Home renovation and furnishing revenue fell 20.6% year-over-year to CNY 2.3 billion. Xu said the decline reflected KE’s proactive exit from low-quality customer acquisition channels and cities with weaker unit economics. The segment’s contribution margin improved 3.6 percentage points year-over-year to 36.2%, helped by material cost savings through centralized purchasing and tender-based local procurement, as well as improved labor assignment efficiency.
Peng said the company is prioritizing profitability, standardization, product capabilities and delivery quality in the renovation business rather than near-term scale. In response to Goldman Sachs analyst Timothy Zhao, Peng said revenue had been affected by business adjustments, reduced exposure in certain cities and weaker market demand, but added that underlying capabilities were improving.
Home rental services revenue slipped 1.5% year-over-year to CNY 5 billion. Xu said the decline was tied to the continued shift of Carefree Rent toward a lighter, lower-risk product model, with more units recognized on a net revenue basis. Managed rental units exceeded 740,000 at the end of the quarter, up about 47% year-over-year. The rental services contribution margin reached 14.8%, marking the sixth consecutive quarter of sequential improvement.
Strategic Shift Toward Decision Support Peng used much of the call to describe KE’s strategic and organizational restructuring, saying the housing services industry is moving away from a listings-driven model toward one centered on decision support. He said consumers increasingly need help evaluating whether to buy, where to buy, how to price a property and how to make trade-offs involving school districts, commute, comfort and asset quality.
“KE Holdings is evolving from a platform that organizes transactions into one that supports higher quality housing decisions,” Peng said through the call’s English interpretation.
Peng said the company is sending managers back to the front lines, improving agent specialization and turning non-standard services into more standardized products. He cited “Commit to Sell,” a Beijing pilot designed to help sellers set reserve prices online and allow buyers to bid with deposits, as one example of a product intended to improve price discovery and transaction efficiency.
Peng said Commit to Sell remains in an early pilot stage with a small sample size, but early signs show shorter transaction cycles and high homeowner satisfaction. He also said KE is testing other services such as community open days to concentrate buyer interest.
AI and Outlook Management repeatedly emphasized artificial intelligence as part of KE’s operating transformation. Peng said AI can commoditize basic information sorting while amplifying the value of service providers who help customers make complex housing decisions. He said an internal application-building platform for frontline employees had covered more than 7,100 employees by the end of April, with more than 4,400 applications seeing actual traffic and total visits exceeding 4.12 million.
Xu said KE is maintaining a disciplined approach to AI investment, scaling spending in core business models and foundational AI capabilities while reallocating resources away from lower-return projects.
Asked about the sustainability of margins, Xu said the first-quarter improvement was not driven by a single business or one-off factor, but by operating quality, resource allocation, cost structure and unit economics. He said quarterly margins may fluctuate seasonally, but management remains confident in year-over-year margin improvement for the full year.
About KE NYSE: BEKEKE Holdings Inc NYSE: BEKE is a technology-driven real estate services company that operates an integrated online and offline platform for housing transactions and related services in mainland China. The company provides consumer-facing property listing marketplaces alongside a broad network of offline brokerage offices and agents, aiming to facilitate sales, rentals and new-home transactions for individual and institutional clients.
The company’s offerings span property listings for new and resale homes, rental listings, brokerage representation and transaction facilitation.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Next-generation Chinese real estate company KE Holdings (BEKE +2.99%) was a hot company on the stock exchange on Tuesday. Investors eagerly lapped up its equity after the company posted first-quarter results that beat estimates.
Beating the forecasts KE Holdings, which specializes in online real estate transactions and services, saw its total net revenue decline by 19% year-over-year to 18.9 billion yuan ($2.78 billion) in the quarter. That was on the back of a nearly 16% drop in gross transaction value (GTV) to 712 billion yuan ($105 billion). Much of this was due to a more than 37% slide in the GTV of new home transactions.
Image source: Getty Images.
The company's net income not under generally accepted accounting principles (GAAP) rose to over 1.6 billion yuan ($235 million) from the year-ago profit of nearly 1.4 billion yuan ($206 million). In terms of earnings per ordinary share, net income was 1.42 yuan ($0.21).
Both leading metrics topped the consensus analyst estimates. Prognosticators tracking KE Holdings' fortunes were modeling 18.64 billion yuan ($2.74 billion) in revenue and a much more modest 1.02 yuan ($0.15) per ordinary share in net profitability.
In its earnings release, the company quoted CEO Stanley Peng as saying that "Our performance in this quarter reflected our ongoing efforts to enhance resource allocation, organizational efficiency and service quality, and also laid a foundation for the company to further transition from scale-driven growth to efficiency-driven growth, and from transaction matching to decision-making services."
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A solid performer in a rocky market Investors weren't spooked about that top-line slide. The same quarter of 2025 was marked by a real estate boom in China, so the return to a steadier market cooled results. Additionally, KE Holdings reduced its footprint in secondary business segments such as home renovation and furnishing.
I'm impressed with this resilient company's first-quarter performance, particularly considering that year-over-year market swoon. I very much like that management has the courage to shift from underperforming segments. There's a lot to like about KE Holdings, and I feel it's a smart play on one of the world's largest real estate sectors.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
On May 21, 2026, KE Holdings Inc BEKE shares fell 6.5% today, bringing the current price to $16.89. The stock has experienced a 52-week range of $14.40 to $20.98, reflecting volatility in its performance over the past year.
GF Value™ verdict: The current price is $16.89, which is 9.1% below the GF Value™ estimate of $18.58.GF Score™: 71/100, indicating an above-average rating.Most notable signal: Financial Strength, rated 8/10, suggesting solid financial health. Is BEKE Overvalued or Undervalued? Based on the current price of $16.89, KE Holdings Inc appears to be undervalued compared to the GF Value™ estimate of $18.58, representing a margin of safety of 9.1%. This suggests that there may be an opportunity for investors to acquire the stock at a lower price than its intrinsic value. The GF Valuation label indicates that the stock is fairly valued; however, the current market price being below the GF Value™ could imply potential gains if the stock price aligns with its intrinsic value in the future.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current valuation, therefore, presents a potentially favorable scenario for investors looking for value-oriented opportunities, though one should remain cautious about the broader market conditions and the company's future performance prospects.
How Does BEKE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 40.0x 40.2x Forward P/E 20.4x N/A The current P/E ratio of 40.0x is slightly below its 5-year median P/E of 40.2x, indicating that the stock is trading within its historical valuation range. Moreover, the forward P/E of 20.4x suggests a more favorable outlook in the coming periods. This P/E analysis aligns with the GF Value™ verdict, reinforcing the perspective that the stock may be undervalued compared to its historical performance metrics.
What Does BEKE's GF Score™ Tell Us? Metric Rating GF Score™ 71 Financial Strength 8/10 Profitability 4/10 Growth 5/10 Valuation 9/10 Momentum 4/10 KE Holdings Inc's GF Score™ of 71/100 indicates a strong performance relative to its peers, particularly in Financial Strength and Valuation, where it scored 8/10 and 9/10, respectively. However, it shows weaker performance in Profitability and Momentum with scores of 4/10, suggesting a need for improvement in these areas. Overall, the strong Valuation score aligns with the observation of undervaluation based on the GF Value™, while the relatively lower Profitability and Momentum scores might warrant caution for prospective investors.
What Are Insiders Doing with BEKE Stock? There have been no insider transactions in the last three months for KE Holdings Inc. This lack of activity may suggest that insiders are not currently making moves to buy or sell shares, which can indicate a neutral or stable outlook from those closest to the company. While insider activity can be a strong indicator of future performance, the absence of transactions does not provide a definitive signal either way.
What This Means for Investors Based on the analysis of GF Value™, KE Holdings Inc BEKE shares appear to be undervalued at the current price of $16.89, compared to the GF Value™ estimate of $18.58. This presents a potential opportunity for investors looking for undervalued stocks, although it is important to consider the company's financial health and market conditions moving forward.
For the complete analysis, visit the KE Holdings Inc BEKE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is BEKE's GF Score™?
BEKE has a GF Score™ of 71/100, indicating an above-average rating that suggests potential for higher long-term returns compared to its peers.
Is BEKE overvalued or undervalued?
BEKE is currently undervalued, with a market price of $16.89, which is 9.1% below the GF Value™ estimate of $18.58.
What is BEKE's P/E ratio?
The current P/E (TTM) ratio for BEKE is 40.0x, which is slightly below its 5-year median of 40.2x, indicating it is trading within historical valuation ranges.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
KE Holdings delivers integrated housing transaction and service solutions across China through a broad online and offline platform.
CoreView Capital Management Ltd reported a sale of 550,541 shares of KE Holdings (BEKE +2.99%) in its May 14, 2026, SEC filing, with an estimated transaction value of $9.45 million based on quarterly average pricing.
What happenedAccording to a filing with the Securities and Exchange Commission dated May 14, 2026, CoreView Capital Management Ltd reduced its position in KE Holdings by 550,541 shares. The estimated value of the trade, calculated using the average share price over the quarter, was approximately $9.45 million. The quarter-end value of the BEKE stake declined by $10.71 million, a figure that includes both trading and price changes.
Holdings after the filing:NASDAQ:JD: $163,863,781 (34.7% of AUM)NASDAQ:BZ: $140,337,711 (29.7% of AUM)NYSE:TAL: $125,037,766 (26.4% of AUM)NYSE:BEKE: $38,470,445 (8.1% of AUM)NASDAQ:MOMO: $5,040,887 (1.1% of AUM)As of May 14, 2026, BEKE shares were priced at $16.60, down 10% over the past year and well underperforming the S&P 500, which is up 28%.Company OverviewMetricValuePrice (as of Friday)$16.60Market Capitalization$18.5 billionRevenue (TTM)$13.51 billionNet Income (TTM)$427.71 millionCompany SnapshotKE Holdings offers an integrated platform for housing transactions and services, including existing and new home sales, home renovation, rental services, and related financial and contract solutions.The firm provides brokerage, property management, and value-added housing services via its online and offline ecosystem.It targets home buyers, sellers, renters, and real estate agents across major cities in China, leveraging a broad network of branded stores and digital platforms.KE Holdings Inc. operates at scale as a leading real estate services platform in China, combining online technology with a vast offline agent network. The company’s diversified business model and strong brand portfolio position it as a key intermediary in residential property transactions. Its integrated approach and technology-driven solutions enhance transparency and efficiency within the Chinese housing market.
What this transaction means for investorsCoreView reported only five holdings last quarter, and even after this reduction, KE Holdings remained the fund’s fourth-largest position at roughly $38 million, trailing JD.com, Kanzhun, and TAL Education. That suggests the fund still sees value in the business, even as China's housing market remains uneven.
KE's latest results painted a mixed picture. First-quarter revenue fell 19% year over year to $2.7 billion as transaction volumes weakened across both existing and new home sales. Gross transaction value dropped 15.6%, with new home transactions particularly soft, falling 37.2%. But there were bright spots. Net income climbed 47% to $182 million, while adjusted net income rose 16% to $234 million as management focused on efficiency, cost controls, and higher-margin businesses.
CEO Stanley Peng said the company is shifting from scale-driven growth toward efficiency-driven growth and more decision-oriented services for consumers, and CFO Tao Xu highlighted that gross margin and adjusted operating margin reached their highest levels in seven quarters. For long-term investors, it seems the key question is whether China's housing market stabilizes. KE has proven it can improve profitability even in a difficult environment, but a sustained recovery in transaction activity would likely be the biggest catalyst for the stock.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Hello Group and JD.com. The Motley Fool has a disclosure policy.
BEIJING, June 12, 2026 (GLOBE NEWSWIRE) -- KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced that each of the proposed resolutions submitted for shareholders’ approval (the “Proposed Resolutions”) as set forth in the notice of annual general meeting dated April 24, 2026 has been adopted at the meeting held in Beijing, China today.
After the adoption of the Proposed Resolutions, all corporate authorizations and actions contemplated thereunder were approved, including, among other things, that (i) the Company’s existing memorandum and articles of association are amended and restated by their deletion in their entirety and by the substitution in their place of the seventh amended and restated memorandum and articles of association as set out in the circular of the Company dated April 24, 2026, (ii) each of Mr. Wangang Xu and Mr. Tao Xu is re-elected as an executive director of the Company and Mr. Hansong Zhu is re-elected as an independent non-executive director of the Company, and (iii) the directors of the Company are granted a general unconditional mandate to allot, issue and deal with additional Class A ordinary shares or equivalents and a general unconditional mandate to repurchase the Company’s own shares, respectively, on the terms and in the periods as set out in the notice of annual general meeting.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way for it to build its infrastructure and standards and drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike’s platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: [email protected]
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
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Stock to Watch: Cigna (CI - Free Report) Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
CI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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Stock to Watch: Cigna (CI - Free Report) Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
CI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. CI has a Momentum Style Score of A, and shares are up 1.6% over the past four weeks.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cigna (CI - Free Report) Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
CI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.52; value investors should take notice.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $30.38 per share. CI boasts an average earnings surprise of +1.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CI should be on investors' short list.
On May 12, 2026, The Cigna Group CI shares rose 3.6% to a current price of $298.49. The stock has experienced a 52-week range, with a high of $338.89 and a low of $239.51. This upward movement comes amid a year-to-date increase of 9.1%, although the stock is down 3.5% over the past year.
GF Value™ verdict: The current price of $298.49 is 30.6% undervalued compared to the GF Value™ estimate of $430.00.GF Score™: 72/100, indicating an above-average stock with potential for higher long-term returns.Most notable signal: Insiders sold $1.2M in the last 3 months, showing no buying activity. Is CI Overvalued or Undervalued? The current market price of The Cigna Group CI shares at $298.49 is significantly below the GF Value™ estimate of $430.00, indicating that the stock is 30.6% undervalued. This substantial margin of safety suggests that investors may have an opportunity to benefit from the potential upside. According to GuruFocus, the GF Valuation label classifies CI as significantly undervalued, which signals a favorable investment case, albeit with caution due to the lack of insider buying activity.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation suggests promise, it is essential to consider the lack of support from insider activity, which could indicate a lack of confidence among executives in the company's near-term prospects.
How Does CI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.7x 15.4x Forward P/E 9.9x N/A The current P/E (TTM) of 12.7x is 18% below its 5-year median P/E of 15.4x, indicating that the stock is trading at a lower valuation compared to its historical averages. Additionally, the forward P/E of 9.9x further supports the idea that CI is undervalued. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that CI shares are currently undervalued.
What Does CI's GF Score™ Tell Us? Metric Rating GF Score™ 72 Financial Strength 6/10 Profitability 6/10 Growth 7/10 Valuation 4/10 Momentum 2/10 The GF Score™ of 72/100 reflects an above-average potential for CI, with the strongest area being growth, rated at 7/10. However, the valuation rank of 4/10 and momentum rank of 2/10 highlight the company's struggles in these areas. The moderate financial strength and profitability scores suggest that while CI has growth potential, there are challenges that could affect its overall performance.
What Are Insiders Doing with CI Stock? Recently, insiders have sold $1.2M worth of shares in The Cigna Group, with no buying activity reported. This trend could indicate a lack of confidence among insiders regarding the company’s short-term performance or outlook. The absence of insider buying may also suggest that insiders do not see immediate value in the current price levels, which could be a red flag for potential investors.
What This Means for Investors Based on the GF Value™ assessment, The Cigna Group CI is considered undervalued, with a significant margin of safety when compared to its intrinsic value. However, the lack of insider buying and lower momentum rank should be taken into account as potential risks for investors looking to capitalize on this valuation opportunity.
For the complete analysis, visit the The Cigna Group CI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CI's GF Score™?
CI's GF Score™ is 72/100, indicating that it is above average compared to other stocks and has the potential to deliver higher long-term returns.
Is CI overvalued or undervalued?
CI is considered undervalued, with a current price of $298.49 compared to a GF Value™ of $430.00, representing a 30.6% upside.
What is CI's P/E ratio?
CI's P/E (TTM) is 12.7x, which is 18% below its 5-year median of 15.4x, indicating that it is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Global health company The Cigna Group (NYSE:CI) announced that Brian Evanko, President and Chief Operating Officer of The Cigna Group, will present at the BofA Securities 2026 Health Care Conference today, May 13, 2026, in Las Vegas, NV.
The Cigna Group's presentation is expected to begin at approximately 12:20 p.m. ET. A live webcast of the presentation will be available at https://investors.thecignagroup.com/events-and-presentations/default.aspx in the Investor Relations section of The Cigna Group's website.
To listen to this presentation live on the Internet, visit https://investors.thecignagroup.com/events-and-presentations/default.aspx at least 15 minutes prior to the presentation to download and install any necessary audio software.
About The Cigna Group
The Cigna Group (NYSE: CI) is a global health company committed to creating a better future built on the vitality of every individual and every community. We relentlessly challenge ourselves to partner and innovate solutions for better health. The Cigna Group includes products and services marketed under Evernorth Health Services, Cigna Healthcare, or its subsidiaries. The Cigna Group maintains sales capabilities in more than 30 countries and jurisdictions, and has over 185 million customer relationships around the world. Learn more at thecignagroup.com.
Investor Relations Contact
Ralph Giacobbe
1 (860) 787-7968
[email protected]
Media Contact
Justine Sessions
1 (860) 810-6523
[email protected]
Key Takeaways CI reported Q1 2026 adjusted revenue growth of 4.7% year over year to $68.5 billion.Cigna expects at least $6.9B Evernorth operating income and $4.5B from Cigna Healthcare.Cigna raised its dividend to $1.56 per share while maintaining a higher-than-industry yield. The Cigna Group (CI - Free Report) is well poised for growth on the back of strong segmental performance, improving operating efficiency and shareholder-friendly moves. Based in Bloomfield, CT, Cigna has a market capitalization of $79.6 billion. The company’s shares have gained 7.2% year to date, underperforming the industry’s average increase of 20.1% over the same period.
Its forward P/E ratio of 9.35x is lower than the industry average of 17.72x, indicating a relatively attractive valuation. Supported by solid prospects, Cigna currently holds a Zacks Rank #3 (Hold) and has a Value Score of A.
Zacks Estimates for CIThe Zacks Consensus Estimate for 2026 earnings is pegged at $30.38 per share, suggesting a 1.8% year-over-year increase. Over the past month, estimates have witnessed seven upward revisions against one downward revision. The consensus estimate for 2026 revenues is pinned at $287.5 billion, indicating 4.7% year-over-year growth.
Cigna beat earnings estimates in each of the trailing four quarters, with the average surprise being 1.9%.
CI’s Growth DriversCI’s first-quarter 2026 adjusted income from operations rose 12% year over year, driven by strong growth in the Cigna Healthcare and Evernorth Health Services. The company expects Evernorth Health Services’ adjusted operating income, on a pre-tax basis, to reach at least $6.9 billion in 2026, while the Cigna Healthcare unit is expected to generate a minimum of $4.5 billion in 2026. Cigna’s first-quarter 2026 adjusted revenues increased 4.7% year over year to $68.5 billion.
Business mix shifts and improved operating efficiency are major positives. The adjusted SG&A expense ratio improved to 4.8% in the reported quarter from 5.8% a year ago. Evernorth Health Services introduced a transformative pharmacy benefits model that passes drug manufacturer discounts directly to customers at the point of sale, lowering out-of-pocket costs. Cigna plans to adopt this model for its fully insured customers starting in 2027 while also raising its 2026 profits outlook for the Cigna Healthcare segment.
Cigna continues to demonstrate a strong commitment to enhancing shareholder value. The company repurchased nearly 11.9 million shares for approximately $3.6 billion in 2025. Although it didn’t make any buybacks in the first quarter, management approved a 3.3% increase in the quarterly dividend in February 2026, raising it to $1.56 per share. Its current dividend yield of 2.12% is higher than the industry average of 1.94%.
CI: Risks to WatchThere are some factors that investors should keep an eye on.
The company’s total benefits and expenses have escalated over the past several years due to higher pharmacy and other service costs. Total benefits and expenses witnessed a year-over-year increase of 4% in 2024, 12% in 2025 and 4% in the first quarter of 2026. Pharmacy and other service costs increased 12% year over year, reflecting changes in claims composition. The persistent escalation of expenses might weigh on margin growth.
Cigna has been grappling with a significant debt level over the past several years. At the end of the first quarter of 2026, it had a long-term debt of $29.4 billion, significantly higher than the cash balance of $7 billion. Its long-term debt to total capital ratio of 40.9% is slightly above the industry average of 40.5%. The elevated leverage level is likely to keep pressure on the company’s interest expenses going forward.
Key PicksSome better-ranked stocks in the broader Medical space are BrightSpring Health Services, Inc. (BTSG - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Centene Corporation (CNC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.64 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.1 billion, implying 16.6% year-over-year growth.
The Zacks Consensus Estimate for Globus Medical’s 2026 earnings is pegged at $4.66 per share, indicating a 17.1% year over year increase. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.3%. The consensus estimate for 2026 revenues is pinned at $3.2 billion, implying 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.47 per share, which has witnessed nine upward revisions in the past 30 days, with no movement in the opposite direction. CNC beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 74.9%. The consensus estimate for 2026 revenues is pinned at $190.8 billion.
Cigna Group is reiterated as a "Buy," driven by strong Q1 2026 results, raised guidance, and sustained business momentum. CI's pharmacy and behavioral health segments are fueling revenue growth, while divestitures and PBM reform temporarily temper 2026 earnings. Shares trade at a 25% discount to a $377 fair value estimate, offering potential 15% annual total returns through 2031.
CRANBURY, N.J., May 27, 2026 (GLOBE NEWSWIRE) -- Cigna Healthcare® has selected MJH Life Sciences® as a recipient of its 2025 gold-level Healthy Workforce Designation for demonstrating a strong commitment to improving the health and vitality of its employees through a workplace well-being program.
“At MJH Life Sciences, workforce vitality is our top priority, and we are honored to be recognized with the Cigna Healthy Workforce Designation,” said Mike Hennessy Jr., chairman and CEO of MJH Life Sciences. “We understand the important role employee well-being plays in an organization’s success and how healthy employees contribute to a more productive, satisfied workforce and positive business performance.”
“Vitality” is defined as the ability to pursue life with health, strength and energy. It is both a driver and an outcome of health and work/life engagement, and Cigna Healthcare believes it is essential not only for individuals, but also as a catalyst for business and community growth.
Research conducted as part of the Evernorth Vitality Index confirms that those with higher vitality experience better mental and physical health, along with higher levels of job satisfaction and performance, and stronger relationships with managers. With only one in five U.S. adults reporting high levels of vitality, associates have an opportunity to improve workplace well-being programs and support. A workplace well-being program that takes a comprehensive approach to employee health can be critical for boosting vitality and building a workforce that experiences better overall health and job productivity.
“Employers that prioritize workforce vitality by addressing workplace stress, promoting healthy behaviors and fostering a sense of competence, autonomy and connection are supporting employee well-being and driving organizational success,” said Bryan Holgerson, president of Cigna Healthcare U.S. “As a company committed to creating better health care experiences and outcomes, we’re proud to recognize and celebrate employers who are building cultures of well-being across all dimensions of vitality.”
The Cigna Healthy Workforce Designation evaluates organizations based on the core components of their well-being programs, including workforce insights; strategy and culture; health equity and social determinants of health; dimensions of vitality; and engagement and experience. Organizations recognized with this designation set the standard of excellence for organizational health and vitality. Cigna Healthcare’s selection of MJH Life Sciences for the gold-level designation reinforces the company’s efforts and progress in 2025 toward nurturing a healthy work culture.
ABOUT MJH LIFE SCIENCES
MJH Life Sciences is the largest privately held, independent, full-service health care engagement network in North America dedicated to delivering trusted health care news, education, and data-informed insights to over 7 million health care decision-makers across multiple channels. With a diverse portfolio of leading brands, events and multimedia solutions, we connect health care professionals with the latest advancements and expert perspectives. Committed to driving meaningful change in health care, we strive to make an impact through innovation and excellence. For more information about MJH, visit https://www.mjhlifesciences.com/.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cigna (CI - Free Report) Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
CI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.41; value investors should take notice.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $30.37 per share. CI boasts an average earnings surprise of +1.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CI should be on investors' short list.
A combination image shows an injection pen of Zepbound, Eli Lilly's weight loss drug, and boxes of Wegovy, made by Novo Nordisk. REUTERS/Hollie Adams/Brendan McDermid/Combination/File Photo Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, June 2 (Reuters) - Health insurer Cigna (CI.N), opens new tab will stop covering GLP-1 weight-loss drugs including Novo Nordisk's (NOVOb.CO), opens new tab Wegovy and Eli Lilly's (LLY.N), opens new tab Zepbound in its employee health plan effective July 1, according to materials viewed by Reuters on Tuesday.
Details of the change in the Cigna Group Medical Plan were announced in an email to employees on June 1.
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A Cigna spokesperson confirmed that it was ending the coverage.
“As availability has increased and new options have emerged, we've made the decision to end our plan's coverage for GLP-1s for weight loss," the spokesperson said. "We remain committed to supporting our employees’ health through a range of weight management programs and resources.”
Wildly popular GLP-1 drugs like Wegovy and Zepbound promote weight loss by mimicking a hormone that keeps the stomach feeling full.
In a document circulated to employees, Cigna suggested those currently using the medications can choose to pay for the drugs with cash through manufacturer sites or TrumpRx.
The cash-pay purchases will not apply toward a deductible or the amount of spending required before enrollees can use their health coverage, the document said.
The price of weight-loss drugs has been dropping in 2026 with the launch of Novo’s Wegovy pill and Lilly’s oral Foundayo, which feature prices that start at $149 per month for the lowest dose. Americans have been increasingly pushed to the cash-pay market for the medications.
At the same time, employers have been cutting back on their coverage of the drugs.
The spokesperson said the change will not impact coverage for plans outside of Cigna's employee health plan or coverage of the drugs for the treatment of type 2 diabetes.
Those currently using the medications have until June 30 to refill their prescription. Weight regain is common for patients who stop taking the medications, and benefits often fade within two years, early research has found.
Cigna said that for employees who had insurance approvals for the drugs, it would cover older, generic weight-loss drugs including phentermine, diethylpropion, benzphetamine and phendimetrazine, which are less effective than GLP-1s.
The Cigna Group operates health insurer Cigna, health services unit Evernorth and pharmacy benefit manager Express Scripts.
The company had 67,700 employees at the end of 2025, 88% of whom were based in the U.S.
Reporting by Amina Niasse; Editing by Caroline Humer and Bill Berkrot
Our Standards: The Thomson Reuters Trust Principles., opens new tab
A screen displays the logo for Cigna Corp. on the floor at the New York Stock Exchange (NYSE) in New York, U.S., July 16, 2019. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
CompaniesJune 12 (Reuters) - Cigna's (CI.N), opens new tab pharmacy benefits services unit Express Scripts on Friday requested that the court strike down an unlawful state law that would restrict access to prescription medications and health care for hundreds of thousands of residents in Tennessee.
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Reporting by Sriparna Roy in Bengaluru; Editing by Joyjeet Das
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Artificial intelligence (AI) pioneer Nvidia is having an underwhelming 2026 so far despite delivering outstanding results quarter after quarter. Shares of the chipmaker have appreciated only 12% this year, well below the 74% jump in the PHLX Semiconductor Sector index.
However, shares of Lumentum Holdings (LITE +3.54%) and Applied Materials (AMAT +2.69%) have been flying high in 2026. While Lumentum stock has gained 121% this year, Applied Materials has also jumped by an impressive 67%. Both companies have benefited from massive investments in AI infrastructure.
Let's take a closer look at the reasons why these two stocks have been in fine form on the market so far this year and check why they are likely to deliver more upside.
Image source: Getty Images
AI is driving phenomenal growth at Lumentum Holdings Lumentum Holdings manufactures optical and photonic components, such as lasers, transceivers, and amplifiers, which are deployed in the cloud, networking, and industrial markets. The company's products enable high-speed connectivity in data centers, which explains why they are in high demand from hyperscalers to reduce latency when transmitting large datasets.
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Lumentum's revenue and earnings growth have taken off amid AI-fueled demand from data centers. Its revenue in the first nine months of fiscal 2026 (which ended on March 28) increased by 72% year over year to just over $2 billion. Lumentum's guidance of $985 million in revenue for the current quarter suggests that its top line will more than double from the year-ago period's reading of $480.7 million.
This acceleration in Lumentum's growth suggests that demand for its products is strengthening. That's not surprising, as Lumentum's optical and photonics components remove a key bottleneck in AI model training and inference tasks. The high-speed connectivity enabled by Lumentum's products means AI accelerator chips don't need to sit idle waiting for data, thereby reducing the time required to run workloads in the cloud.
Not surprisingly, the optical component market is expected to grow at an annual rate of 21% through 2029, generating $30 billion in revenue at the end of the forecast period, according to market research provider Cignal AI. So, Lumentum's addressable market is poised to grow nicely in the coming years, which is why analysts expect solid revenue growth from the company.
Data by YCharts
Even better, Lumentum notes that its data center products carry higher margins. This is translating into solid bottom-line growth for the company, with its earnings per share increasing by 4.5x year over year in the first nine months of fiscal 2026 to $5.27. Importantly, the robust revenue growth that Lumentum is expected to deliver is poised to translate into healthy earnings growth as well.
Data by YCharts
Of course, Lumentum trades at an expensive 56 times forward earnings, but its red-hot earnings growth justifies that valuation. Assuming this AI stock trades at a discounted 50 times earnings after a couple of years and achieves $28.12 in earnings per share (as per the chart above), its price could reach $1,406. That's a potential upside of 64%, which means that it isn't too late for investors to buy this high-flying stock.
Applied Materials' growth is picking up on the back of healthy AI chip demand The semiconductor industry has been booming thanks to AI, which is driving up demand for wafer and fabrication equipment (WFE) needed to manufacture chips for data centers and other AI applications. Applied Materials is capitalizing on the growth of the semiconductor equipment market, as it sells manufacturing equipment and also offers software and services to optimize the performance of such equipment.
The company's revenue increased 11% year over year in the second quarter of fiscal 2026 (which ended on April 26) to $7.91 billion. Earnings per share jumped by 20% year over year to $2.86 per share. These numbers were a big improvement over the company's fiscal Q1 performance when its revenue fell 2%, and earnings remained flat.
Applied Materials' guidance suggests that its growth is poised to accelerate impressively in the current quarter. The company anticipates $8.95 billion in revenue and $3.36 in non-GAAP earnings per share in the current quarter, indicating that its top line could jump by 23% year over year while earnings growth will accelerate to 36%.
Applied Materials management anticipates an increase of over 30% in its semiconductor equipment business this year, followed by another solid jump in 2027 due to the continued investments in this space. The company notes that investments in leading-edge foundry equipment, dynamic random-access memory (DRAM), and advanced packaging will account for 80% of the WFE market's growth in 2026, and a similar pattern is expected to follow next year.
Additionally, Applied Materials' partnerships with TSMC, Micron Technology, SK Hynix, and Samsung to develop AI-focused equipment put it in a solid position to capitalize on the growth of the semiconductor equipment market. Not surprisingly, analysts have substantially increased their earnings growth expectations for Applied Materials.
Data by YCharts
If its earnings indeed jump to $19.48 after a couple of fiscal years and it trades at 43 times earnings at that time (in line with the tech-focused Nasdaq Composite index's earnings multiple), its stock price could reach $837. That suggests potential upside of 86% in this semiconductor stock, which is why investors can consider buying it before it soars higher.
Applied Materials (AMAT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of chipmaking equipment have returned +15.7% over the past month versus the Zacks S&P 500 composite's +6.3% change. The Zacks Electronics - Semiconductors industry, to which Applied Materials belongs, has gained 21.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Applied Materials is expected to post earnings of $3.35 per share for the current quarter, representing a year-over-year change of +35.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +15.1%.
The consensus earnings estimate of $12.02 for the current fiscal year indicates a year-over-year change of +27.6%. This estimate has changed +8.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $15.77 indicates a change of +31.2% from what Applied Materials is expected to report a year ago. Over the past month, the estimate has changed +12.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Applied Materials is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Applied Materials, the consensus sales estimate of $8.98 billion for the current quarter points to a year-over-year change of +23%. The $33.13 billion and $41.34 billion estimates for the current and next fiscal years indicate changes of +16.8% and +24.8%, respectively.
Last Reported Results and Surprise HistoryApplied Materials reported revenues of $7.91 billion in the last reported quarter, representing a year-over-year change of +11.4%. EPS of $2.86 for the same period compares with $2.39 a year ago.
Compared to the Zacks Consensus Estimate of $7.69 billion, the reported revenues represent a surprise of +2.82%. The EPS surprise was +6.72%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Applied Materials is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Applied Materials. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Applied Materials (AMAT - Free Report) .
Applied Materials currently has an average brokerage recommendation (ABR) of 1.55, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 38 brokerage firms. An ABR of 1.55 approximates between Strong Buy and Buy.
Of the 38 recommendations that derive the current ABR, 26 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.4% and 7.9% of all recommendations.
Brokerage Recommendation Trends for AMAT
Check price target & stock forecast for Applied Materials here>>>
The ABR suggests buying Applied Materials, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is AMAT Worth Investing In?Looking at the earnings estimate revisions for Applied Materials, the Zacks Consensus Estimate for the current year has increased 8.2% over the past month to $12.02.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Applied Materials. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Applied Materials may serve as a useful guide for investors.
CHONGQING, CHINA - AUGUST 08: In this photo illustration, a person holds a smartphone displaying the logo of Applied Materials Inc. (NYSE: AMAT), a leading American semiconductor and display equipment company, in front of a screen showing the company's brand logo on August 8, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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This article was written and reviewed by Doug Nathman and his team at Trefis. For questions, email [email protected]
When it comes to investors' perspectives on AI winners, the typical companies that come to mind include:
Nvidia (NVDA), TSMC, or memory producers such as
Micron (MU). However, the semiconductor equipment powerhouse
Applied Materials (AMAT) often doesn't receive the same level of attention, even though it provides the necessary tools to fabricate nearly all vital components of an AI chip.
Recently, investors have begun to take note. The stock has nearly tripled in value over the last year, elevating its valuation to approximately 37x forward earnings and 12x trailing sales, up from less than 4x sales just twelve months ago.
The central inquiry is whether Applied merits that elevated valuation.
This re-rating has significantly outpaced the company’s growth projections, with revenue anticipated to increase by approximately 17% this year and around 25% the following year according to consensus estimates. While these growth figures are robust, they are not typically linked to a stock that has nearly tripled in price, reinforcing the value of anchoring high-conviction AI bets within a proven, well-rounded strategy like our High Quality (HQ) Portfolio.
Essentially, investors are wagering that Applied’s role in the AI ecosystem is becoming both more substantial and sustainable. Hyperscalers are projected to expend over $600 billion on AI infrastructure just this year, but the specific composition of that expenditure is likely to evolve over time. Current spending primarily focuses on Nvidia GPUs for the training of large models. In the future, the emphasis could shift to custom ASICs optimized for inference. Agentic AI might stimulate a revival in CPU demand. Memory requirements could continue to climb at a pace faster than compute, whilst advanced packaging might emerge as the principal bottleneck in the industry.
Each of these scenarios gives rise to different winners at the chip level. Applied is engaged across all these fronts. Instead of betting on the winning chip architecture, investors are effectively betting that AI hardware will increasingly become larger, more intricate, and more costly to manufacture. Refer to our bullish case: How Applied Materials Stock Surges To $800
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The AI potential for Applied is understood through three foundational pillars: logic, memory, and advanced packaging.
Logic: Increased Complexity Of AI Processors Requires More EquipmentThe first pillar is logic chips, which include the GPUs and AI accelerators that drive contemporary data centers. As AI chips advance to cutting-edge nodes of 2 nm and below, their manufacturing becomes considerably more challenging. New technologies such as Gate-All-Around transistors and backside power delivery introduce complexity and amplify the number of manufacturing steps for each chip. This is precisely where Applied Materials excels. The company provides many of the tools essential for these sophisticated processes. For investors, the critical takeaway is that Applied does not need chip volumes to skyrocket. As chips become more intricate, there is an increased necessity for equipment to produce them, creating favorable conditions for the company even if overall wafer volumes remain relatively stable.
Memory: The HBM Boom Is Elevating Equipment ComplexityThe second pillar is memory, with a focus on high-bandwidth memory (HBM). HBM has become an essential part of AI systems as modern GPUs require substantial memory bandwidth. In contrast to traditional DRAM, HBM is markedly more complex to produce. This complexity offers direct advantages to Applied Materials. Management indicated that each HBM unit occupies roughly three times the wafer area of standard DRAM and involves 19 manufacturing steps, 15 of which pertain to semiconductor equipment. Applied captures over half of the equipment value linked to those additional procedures. The outcome is that Applied gains from both the rising demand for memory and the increasing complexity of memory fabrication. As AI propels greater adoption of HBM, equipment expenditures are outpacing memory volumes themselves.
Advanced Packaging: The Most Rapidly Expanding AI OpportunityThe third pillar is advanced packaging. Modern AI systems are no longer constructed around a single chip. Instead, they integrate multiple elements, including logic dies and stacked HBM memory, into a tightly coupled package. The interconnection of these components demands advanced packaging techniques such as 3D stacking and chiplet integration. This segment is emerging as one of the fastest-growing areas in semiconductor manufacturing. Applied anticipates advanced packaging revenue to surge by over 50% in the calendar year 2026 and has been making significant investments to enhance its position. As AI chips become increasingly complex integrations rather than independent processors, packaging accounts for a larger share of overall manufacturing spending.
The Broader PerspectiveApplied Materials’ advantage lies in its breadth. The semiconductor equipment market is an oligopoly, yet most competitors focus on a singular chokepoint: ASML in lithography, Tokyo Electron in coating and developing, and KLA in inspection and metrology. Applied encompasses all three layers necessary for an AI chip: logic, memory, and packaging. This means its revenue aligns with the escalating complexity of AI hardware itself rather than being dependent on the outcome of any singular process step or node transition.
The most compelling evidence of that position is customer foresight. Applied is now capable of obtaining up to eight quarters of forward demand visibility, or around two years, contrasted with the three to six months that historically preceded equipment orders. This transformation is significant as it alters how investors assess the business’s value. Equipment manufacturers have traditionally operated at lower multiples due to the potential for orders to diminish within a quarter. With demand now visible years ahead, Applied increasingly presents itself as less of a cyclical tool supplier and more as an essential provider of AI infrastructure.
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Applied Materials (AMAT - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Materials is one of 592 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AMAT's full-year earnings has moved 8.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AMAT has gained about 76.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 16.1% on average. This means that Applied Materials is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, A10 Networks (ATEN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 72.8%.
The consensus estimate for A10 Networks' current year EPS has increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Applied Materials belongs to the Electronics - Semiconductors industry, which includes 47 individual stocks and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have gained about 43% so far this year, so AMAT is performing better this group in terms of year-to-date returns.
In contrast, A10 Networks falls under the Internet - Software industry. Currently, this industry has 170 stocks and is ranked #78. Since the beginning of the year, the industry has moved -11%.
Investors interested in the Computer and Technology sector may want to keep a close eye on Applied Materials and A10 Networks as they attempt to continue their solid performance.
Applied Materials surges 166.8% in a year as AI-driven demand boosts logic, DRAM and packaging markets, raising questions about its valuation and outlook.
