KE Holdings Reports Q2 2026 Earnings: Strong Profit Growth and Strategic Shifts
KE Holdings (BEKE) reported strong second-quarter results for 2026, with non-GAAP net income rising by 74.9% year-over-year to RMB 3.2 billion due to improved cost structure and operational efficiency. Gross margin expanded significantly to 28.6%, driven by better performance across core business lines. The company's existing home gross transaction value (GTV) grew 8% year over year, supported by increased activity in tier one cities. Despite challenges in the broader market, KE Holdings maintained resilience with new home GTV up slightly at 1.2%. However, revenue from home renovation and rental services declined due to strategic exits from inefficient markets and a shift toward lighter-risk products. The company also repurchased $250 million worth of shares during Q2 as part of an ongoing buyback program. Management highlighted the transition toward AI-assisted operations and modular ecosystems for improved efficiency, while cautioning about continued market pressures in new home deliveries affecting renovation demand.
