Kanzhun Q1 2026 Results: Steady Execution Supports Low-Teens Growth Thesis

What happened

Kanzhun reported Q1 2026 results, continuing its trajectory of low-teens revenue growth and expanding margins, consistent with the deep value thesis. The company's AI-driven platform and disciplined cost management underpinned another quarter of strong profitability, with net margins remaining in the mid-30s. Paid enterprise customer growth remained healthy, albeit decelerating, as the platform deepens penetration among SMEs. Management's capital return strategy—including buybacks and dividends—further reinforces the shareholder-friendly stance. While macro risks in China persist, the company's net cash balance sheet and operational leverage provide a solid margin of safety.

Implication

The Q1 results reinforce the base-case scenario of 10-12% revenue growth and ~30-33% net margins, supporting a fair value near $22. Continued execution on AI monetization and cost control could drive gradual multiple expansion, offering mid-teens annualized returns from current levels. Investors should monitor macro indicators and customer growth for signs of deceleration.

Thesis delta

No material shift in the investment thesis. The Q1 print aligns with expectations, and the stock remains in the attractive entry zone. The key question is whether revenue growth can sustain above 10% as user growth moderates, but current data suggest the company is on track.