TENCENT (Tencent Holdings Limited) reported unaudited revenue of RMB 401.24 billion for the first half of 2026, an increase of 10% year-on-year. Profit attributable to equity holders rose 10% to RMB 114.12 billion, while non-IFRS profit climbed 10% to RMB 136.32 billion.
Second-quarter revenue reached RMB 204.79 billion, up 11% versus a year earlier. Quarterly profit attributable to equity holders edged up 0.7% to RMB 56.02 billion; non-IFRS profit advanced 9% to RMB 68.42 billion. Gross margin improved to 58% from 57% a year ago.
Segment performance in Q2 2026: • Value-added Services (VAS) contributed RMB 98.41 billion, accounting for 48% of total revenue and rising 8% year-on-year. Domestic games grew 17% to RMB 47.30 billion, supported by titles such as Delta Force, VALORANT and Roco Kingdom: World. • Marketing Services generated RMB 43.57 billion, up 22%, buoyed by enhancements to AI-driven ad solutions. • FinTech and Business Services delivered RMB 60.29 billion, a 9% increase, driven by commercial payments, wealth management, consumer loans and cloud demand.
Operational highlights as at 30 June 2026: • Weixin & WeChat combined MAU rose 2% to 1.44 billion. • QQ mobile MAU dipped 2% to 520 million. • Video Accounts’ time spent grew over 20% year-on-year in Q2.
Aggressive AI build-out pushed capital expenditure to RMB 84.72 billion in the first half, more than 80% higher than the prior-year period. Prepayments for compute capacity weighed on free cash flow, which was negative RMB 13.80 billion in Q2; excluding these prepayments, free cash flow would have been RMB 37.56 billion.
The group ended June with net cash of RMB 58.19 billion, down from RMB 146.86 billion three months earlier after paying the 2025 dividend of RMB 41.68 billion and capex-related outlays.
Shareholder returns: • No interim dividend was declared. • The company repurchased 50.03 million shares in the first half for HKD 24.41 billion.
Outlook statements emphasised accelerated procurement of AI compute, rollout of the Hy3 model, and monetisation opportunities in WorkBuddy, CodeBuddy and Xiaowei, alongside continued focus on core games and advertising growth.