Tencent Holdings (00700) announced second-quarter results. The adjusted profit attributable to shareholders was 68.415 billion yuan, up 9% year-on-year

According to the Zhitong Finance App, Tencent Holdings (00700) announced the results for the second quarter of 2026. The group achieved revenue of approximately RMB 204.785 billion (same unit), an increase of 11% year-on-year and 4% month-on-month. Gross profit was 118.433 billion yuan, up 13% year on year and 6% month on month. Profit attributable to the company's equity holders was 56.022 billion yuan, up 0.7% year on year and down 4% month on month. Profit attributable to equity holders in non-IFRS companies was $68.415 billion, up 9% year on year and 0.8% month on month. Basic earnings per share were $6.207.

In the first half of 2026, the group achieved revenue of about 401,243 billion yuan, an increase of 10% over the previous year. Gross profit was 229.698 billion yuan, up 12% year over year. The company's equity holders should account for profit of $114.115 billion, an increase of 10% over the previous year. Profit attributable to equity holders in non-IFRS companies was $136.32 billion, an increase of 10% over the previous year. Basic earnings per share were $12.639.

Among them, revenue from the value-added services business increased 8% year-on-year to 98.4 billion yuan in the second quarter of 2026. Game revenue in the local market was 47.3 billion yuan, up 17% year over year, thanks to the growth of several major games. Among them, “Operation Delta”, “Fearless Contract”, “Operation Source Energy” and “Rock Kingdom: World” contributed particularly significantly. Game revenue in the international market was 18.6 billion yuan, down 0.8% year on year due to exchange rate fluctuations, and 4% year on year when calculated at a fixed exchange rate. The revenue growth of “Sound Tide” and “VALORANT” was offset by a decline in revenue from some games owned by Supercell. Social networking revenue increased 0.8% year over year to 32.5 billion yuan.

Revenue from the marketing services business increased 22% year-on-year to 43.6 billion yuan in the second quarter of 2026, thanks to the continuous optimization of the AI-driven advertising recommendation model (which determines the advertising content to be displayed to each user each time), the upgrading of the intelligent delivery product matrix Tencent Marketing AIM+ (to help advertisers buy high-quality exposure), and the integration of closed-loop marketing capabilities within the WeChat ecosystem (helping WeChat integrated services such as mini games and WeChat stores to run ads more effectively on advertising platforms managed by Tencent). Most major industries saw an increase in marketing investment on our platform this season.

Revenue from the fintech and corporate services business increased 9% year-on-year to $60.3 billion in the second quarter of 2026. The increase in revenue from fintech services was mainly due to increased revenue from commercial payments, financial management and consumer loan services. The growth in enterprise service revenue is mainly driven by our cloud service revenue growth, thanks to rising demand for AI-related services, continued expansion of the international market, and a more favorable pricing environment.

Entering the third quarter of this year, we are building a new, AI-enabled Tencent at the three levels of intelligence, application, and infrastructure, and have made significant progress. In the smart layer, the official version of Hy3 provides users with a model that can be widely used and has an excellent cost ratio, and lays the foundation for the Hy series model to move to the top level of the industry in the future. At the application layer, the AI office efficiency service Workbuddy and the AI programming tool CodeBuddy have achieved breakthrough user growth and are at the leading level in China in their respective fields. At the infrastructure level, we have greatly increased the procurement of computing power, which will help us turn the use of applications and models into revenue. At the same time, we have further refined our existing business, our marketing service revenue continues to grow, many new games have performed well, and the number of WeChat video broadcasts has grown rapidly.