TENCENT (00700) released its second-quarter results, with adjusted profit attributable to shareholders reaching 68.415 billion yuan, a year-on-year increase of 9%.

TENCENT (00700) released its second quarter results for 2026, reporting revenue of approximately RMB 204.785 billion, an increase of 11% year-on-year and 4% quarter-on-quarter. Gross profit was RMB 118.433 billion, up 13% year-on-year and 6% quarter-on-quarter. Profit attributable to equity holders of the company was RMB 56.022 billion, a year-on-year increase of 0.7% but a quarter-on-quarter decrease of 4%. The non-International Financial Reporting Standards profit attributable to equity holders was RMB 68.415 billion, up 9% year-on-year and 0.8% quarter-on-quarter. Basic earnings per share were RMB 6.207. In the first half of 2026, the group achieved revenue of approximately RMB 401.243 billion, a year-on-year increase of 10%. Gross profit was RMB 229.698 billion, an increase of 12% year-on-year. Profit attributable to equity holders of the company was RMB 114.115 billion, up 10% year-on-year. The non-International Financial Reporting Standards profit attributable to equity holders was RMB 136.32 billion, also up 10% year-on-year. Basic earnings per share were RMB 12.639. In the second quarter of 2026, the revenue from value-added services grew by 8% year-on-year to RMB 98.4 billion. Domestic game revenue was RMB 47.3 billion, an increase of 17% year-on-year, driven by growth in several key games, particularly "Delta Force," "Valorant," "Valorant: Source Action," and "King of Rock: World." International game revenue was RMB 18.6 billion, a year-on-year decrease of 0.8% due to exchange rate fluctuations; however, revenue grew by 4% year-on-year when calculated at fixed exchange rates. The growth in revenue from "Ningchao" and "VALORANT" was offset by declines from certain games under Supercell. Social network revenue rose by 0.8% year-on-year to RMB 32.5 billion. Revenue from marketing services in the second quarter of 2026 increased by 22% year-on-year to RMB 43.6 billion, benefiting from the continuous optimization of the AI-driven advertising recommendation model (which determines the ad content displayed to each user at every exposure), the upgrade of the intelligent advertising product matrix Tencent Marketing AIM+ (which helps advertisers purchase quality exposure), as well as the integration of closed-loop marketing capabilities within the WeChat ecosystem (which aids mini-games and WeChat stores in more effectively placing ads on Tencent-managed advertising platforms). Most major industries saw an increase in marketing spending on our platform this quarter. Revenue from financial technology and enterprise services in the second quarter of 2026 grew by 9% year-on-year to RMB 60.3 billion. The growth in financial technology service revenue was primarily driven by increases in commercial payments, wealth management, and consumer loan services. The growth in enterprise service revenue was largely driven by an increase in our cloud service revenue, benefiting from rising demand for AI-related services, continuous expansion into international markets, and a more favorable pricing environment. Entering the third quarter of this year, we are building a new, AI-powered Tencent at three levels: intelligence, applications, and infrastructure, and have made significant progress. At the intelligence level, the official version of Hy3 provides users with a widely usable and cost-effective model, laying the foundation for the Hy series to reach top-tier industry standards in the future. At the application level, our AI office efficiency service WorkBuddy and AI programming tool CodeBuddy achieved breakthrough user growth, positioning them as leaders in China in their respective fields. At the infrastructure level, we substantially increased computing power procurement, which will help us convert the use of applications and models into revenue. Additionally, we continue to refine our existing businesses, with marketing service revenue continuing to grow, several new games performing well, and WeChat video account views increasing rapidly.