US Stock Movements | Q2 capital expenditure reaches a record high while free cash flow turns negative, Tencent Holdings ADR (TCEHY.US) drops nearly 4% at the start of trading.

According to Zhitong Finance APP, on Wednesday, Tencent Holdings ADR (TCEHY.US) fell nearly 4% in early trading, now reported at $57.33. On the news front, Tencent Holdings experienced steady revenue growth in the second quarter of 2026, but massive investments in AI infrastructure are reshaping the company's financial structurenet profit fell short of market expectations, capital expenditure reached a historical high, and free cash flow recorded negative values. Tencent's revenue in the second quarter increased by 11% year-on-year to 204.8 billion yuan, slightly surpassing Bloomberg's consensus expectation of 202.8 billion. Net profit was 56 billion yuan, while the market's expectation was 58.4 billion. Non-IFRS operating profit was 75.64 billion yuan, a year-on-year increase of 9%; excluding the impact of new AI products, Non-IFRS operating profit grew 19% year-on-year to 86.1 billion yuan.