Tencent Holdings Ltd · HKEX:700
Tencent — Q1 2026 Earnings Presentation
25 slides from Tencent's earnings presentation, May 13, 2026
Slide 1: 2026 First Quarter Results Presentation
Tencent fii 2026 First Quarter Results Presentation May 13, 2026
Slide 2: Cautionary Note
Cautionary Note This presentation may contain forward-looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities, challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the “Company” or “Tencent”) an
Slide 3: 3
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Slide 4: Financial Highlights
Financial Highlights In billion RMB 1Q2026 1Q2025 YoY 4Q2025 QoQ Total Revenue 196.5 180.0 +9% 194.4 +1% Value-added Services 96.1 92.1 +4% 89.9 +7% Social Networks 31.9 32.6 -2% 30.6 +4% Domestic Games1 45.4 42.9 +6% 38.2 +19% International Games 18.8 16.6 +13% 21.1 -11% Marketing Services 38.2 31.
Slide 5: Key Services Update
Key Services Update Weixin & WeChat • #1 mobile community China • MAU at 1,432m • #1 by users and revenue QQ Global • Mobile device MAU at Games • #1 by revenue 516m Video • #1 by paid subscriptions Mobile Payment Music Digital • #1 by MAU & DAU • #1 by paid subscriptions Content FinTech Literature
Slide 6: 2. Business Review
2. Business Review
Slide 7: Revenue
Revenue Revenue Growth (YoY %) +11% +11% +10% +7% +6% +8% +8% +11% +13% +15% +15% +13% +9% Revenue by Segment (billion RMB) 192.9 194.4 196.5 184.5 1% 1% 180.0 1% 172.4 1% 1% 167.2 1% 159.5 161.1 1% 154.6 155.2 30% 31% 31% 150.0 149.2 1% 1% 1% 1% 30% 30% 1% 1% 32% 33% 33% 31% 32% 34% 35% 32% 19% 19%
Slide 8: Gross Profit
Gross Profit Gross Profit Growth (YoY %) +19% +22% +23% +25% +23% +21% +16% +17% +20% +22% +22% +19% +11% Gross Profit by Segment (billion RMB) 111.3 108.8 108.3 105.0 100.5 90.7 28% 88.8 27% 28% 83.9 85.9 28% 27% 76.5 77.6 70.8 29% 29% 68.2 28% 28% 19% 19% 28% 31% 20% 23% 18% 25% 26% 18% 22% 17% 19
Slide 9: Hy LLM: significant progress but just the first step
Hy LLM: significant progress but just the first step Comprehensively revamped system for building models • Completely rebuilt foundation model team with LLM-native researchers and engineers over last 6 months; new team is young, energetic, and cohesive • Comprehensively re-engineered system and proc
Slide 10: Hy LLM: significant progress but just the first step
Hy LLM: significant progress but just the first step Hy3 preview topped token usage ranking on OpenRouter Top 10 AI Models by Token Usage (in trillion) 7.7 5.0 4.0 3.4 3.0 2.7 2.4 2.1 1.9 1.9 Hy3 preview Kimi K2.6 Claude Sonnet Claude Opus 4.7 Gemini 3 Flash DeepSeek V3.2 DeepSeek V4 MiniMax M2.7 Gr
Slide 11: CodeBuddy, Claws and WorkBuddy
CodeBuddy, Claws and WorkBuddy • Agentic AI represents a breakout use case after AI chatbot and is more valuable as it lifts productivity • Agentic AI creating code for programmers is important initial use case, now broadening to support wide range of workloads and occupations • Breakthrough made po
Slide 12: Value-added Services
Value-added Services In billion RMB Social Networks +4% +7% YoY QoQ • Revenue was down 2% YoY, reflecting decreased revenue from app-based games item sales arising from late Spring Festival 96.1 96.1 92.1 89.9 • Long-form video subscription revenue decreased 2% YoY due to fewer 18.8 18.8 scheduled r
Slide 13: Communications & Social Networks
Communications & Social Networks Increasingly vibrant Mini Shops transaction ecosystem • Branded products – Introduced brand incentives including preferential take rates, product subsidies, and prioritised recommendations. Brand merchants' GMV more than tripled YoY in 1Q26, particularly in key categ
Slide 14: Domestic Games
Domestic Games Evergreen games set new records • HoK – gross receipts achieved lifetime high in 1Q26 fueled by 1) top-tier outfits inspired by Chinese ink-paintings and by culture of ancient Silk Road; 2) targeted marketing programs to address various player segments • Peacekeeper Elite – peak DAU a
Slide 15: International Games
International Games PUBG MOBILE League of Legends Revamped team and faster Gross receipts grew YoY in velocity of change drive 1Q26, benefitting from Eastern innovations such as For Demacia mythology-themed outfits, brand season, ARAM: Mayhem mode, collaborations and anniversary and Exalted Viego sk
Slide 16: Marketing Services
Marketing Services Overall In billion RMB • Revenue grew 20% YoY, with notable growth from Internet services, +20% -7% eCommerce and games categories. Revenue growth improved from 17% YoY QoQ YoY in 4Q25 as we deepened collaboration with eCommerce platforms and as demand picked up in response to inc
Slide 17: FinTech and Business Services
FinTech and Business Services In billion RMB FinTech Services • YoY revenue growth primarily driven by commercial payment volume and +9% -2% YoY QoQ wealth management services • For commercial payment volume, YoY growth was faster than 4Q25, benefiting from ongoing increase in number of transactions
Slide 18: 3. Financial Review
3. Financial Review
Slide 19: Income Statement
Income Statement In billion RMB 1Q2026 1Q2025 YoY 4Q2025 QoQ Revenue 196.5 180.0 +9% 194.4 +1% Gross profit 111.3 100.5 +11% 108.3 +3% Operating expenses (45.2) (41.5) +9% (49.3) -8% Other gains (losses), net 1.3 (1.4) NA 1.3 -5% Operating profit 67.4 57.6 +17% 60.3 +12% Net gains from investments a
Slide 20: Gross Margins
Gross Margins 55.8 56.9 56.4 55.7 56.6 52.6 53.3 53.1 52.6 49.5 50.0 45.5 47.5 Overall Gross Margin (%) 61.2 62.6 59.6 60.4 59.5 55.5 57.3 57.0 57.5 55.9 53.9 54.0 53.7 Value-added Services (%) 56.8 57.7 57.6 56.7 59.7 54.8 55.6 53.0 55.5 55.0 52.3 48.9 41.7 Marketing Services (%) 50.3 52.1 50.2 50.
Slide 21: Operating Expenses
Operating Expenses S&M R&D G&A (excl. R&D) in billion RMB in billion RMB in billion RMB +44% -13% +19% -5% -24% -10% YoY QoQ YoY QoQ YoY QoQ 22.6 23.8 22.6 18.9 14.7 13.0 11.3 11.3 12.5 11.3 11.3 7.9 1Q25 1Q26 4Q25 1Q26 1Q25 1Q26 4Q25 1Q26 1Q25 1Q26 4Q25 1Q26 Non-IFRS Non-IFRS Non-IFRS 1Q26 S&M grew
Slide 22: Non-IFRS Operating Margin
Non-IFRS Operating Margin Non-IFRS Operating Margin excl. New AI Products¹ 43.0 39.9 40.2 39.2 39.3 36.8 36.3 36.6 38.5 38.5 37.5 37.6 34.5 35.8 33.4 31.7 30.9 30.0 (%) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 1. Excludes revenues, costs and expenses for new AI products (Hy,
Slide 23: CAPEX, FCF and Cash Position
CAPEX, FCF and Cash Position In billion RMB 1Q2026 1Q2025 YoY 4Q2025 QoQ Operating CAPEX 31.2 26.4 +18% 16.9 +84% Non-operating CAPEX 0.7 1.1 -30% 2.7 -72% Total CAPEX 31.9 27.5 +16% 19.6 +63% Free Cash Flow 56.7 47.1 +20% 34.0 +67% Total Cash 533.7 476.0 +12% 494.8 +8% Less: Total Debt (386.8) (385
Slide 24: 4. Q&A
Slide 25: Tencent Holdings Limited
Tencent Holdings Limited 2026 First Quarter Results Presentation Thank you! https://www.tencent.com/ir