Tencent Q2 Revenue Tops Estimates, Profit Falls Short as Capex Surges
Tencent's second-quarter 2026 revenue surpassed expectations, but operating profit and net income missed forecasts. Capital expenditure more than doubled estimates, and no interim dividend was declared.
Tencent posted second-quarter 2026 revenue of 204.79 billion yuan, beating the consensus estimate of 202.84 billion yuan. Operating profit came in at 67.28 billion yuan (est. 67.73 billion) and net income reached 56.02 billion yuan (est. 58.36 billion), both slightly below expectations.
Capital expenditure surged to 52.78 billion yuan, far above the 32.14 billion yuan forecast. The company said it stepped up procurement of compute and began a small-scale prototype test for Xiaowei.
Segment results were mixed: domestic games revenue of 47.3 billion yuan exceeded the 44.93 billion estimate, but international revenue of 18.6 billion yuan missed the 20.55 billion forecast. FinTech & Business Services generated 60.29 billion yuan, while social networks revenue was 32.5 billion yuan (est. 32.91 billion). Fee-based VAS subscriptions stood at 259 million, below the estimated 268.66 million.
Tencent did not declare an interim dividend.
Source: First Squawk