Beijing Kingsoft Office Software Inc (688111.SS): 3Q26 Results: An Alarming Booking Slowdown

3Q26 total revenue grew 16% YoY to Rmb1.8bn, in line with our estimate. PC active users (core) sustained good growth at 8% YoY, despite declining mobile users. Revenue mix missed: WPS 365 (subscription) growth slowed down significantly from 60%+ in 1H to 34% in 3Q26, though Xinchuang still grew 6% from a high base. Based on contract liabilities, we estimate that KSO's total bookings grew only in low single digits in 3Q26 vs. 25% YoY in 1H26 – an alarming sign, in our view. We think the booking slowdown reflects intensified competition from hyperscalers' office AI agent products. Adjusted net profit rose 8% YoY, slower than revenue growth owing to lower GPM (down 2ppt YoY, likely because of higher cloud/token cost for AI features).