Tencent reported second-quarter 2026 revenue of 204.8 billion yuan, up 11% year-over-year and beating consensus estimates of roughly 202.2 billion yuan. Growth was driven by AI-powered advertising, with marketing services revenue rising 22% to 43.6 billion yuan. IFRS net profit attributable to equity holders came in at 56 billion yuan, up just 0.7% year-over-year and well below analyst projections of 61.8 billion yuan, a miss of nearly 10%. Capital expenditure surged 176% to 52.8 billion yuan, pushing free cash flow into negative territory at 13.8 billion yuan. Tencent also repurchased approximately 37.4 million shares for HKD 16.9 billion during the quarter.
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