Tencent Reports Second Quarter 2026 Financial Results Following Artificial Intelligence Expansion
Technology conglomerate Tencent published its second quarter 2026 financial results highlighting corporate operational progress across artificial intelligence infrastructure enterprise application software and underlying intelligence systems
Tencent Holdings Limited reported its second quarter 2026 financial results, showing strong growth in revenue and profit. The company's revenue increased by 11% year-over-year, reaching RMB204.8 billion. Gross profit rose by 13% to RMB118.4 billion. Non-IFRS operating profit grew by 9% to RMB75.6 billion, with an operating margin of 37%, down from 38% the previous year.
Excluding new AI product contributions, operating profit amounted to RMB86.1 billion, up 19% YoY, with an operating margin of 42%. Net profit for the quarter was RMB70.6 billion, up 9% YoY, and net profit attributable to equity holders was RMB68.4 billion, also up 9% YoY. Basic and diluted earnings per share were RMB7.581 and RMB7.433, respectively.
Capital expenditure for the quarter was RMB52.8 billion, a substantial 176% increase year-over-year. Total cash reserves stood at RMB511.2 billion, up 9% YoY. However, the company experienced a negative free cash flow of RMB13.8 billion, as capital expenditures surpassed net cash generated from operating activities.
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