Tencent Holdings Ltd · HKEX:700
Tencent — Q2 2026 Earnings Presentation
28 slides from Tencent's earnings presentation, Aug 12, 2026
Slide 1: 2026 Second Quarter Results Presentation
2026 Second Quarter Results Presentation Aug 12, 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: 1. Overview
1. Overview 3
Slide 4: Financial Highlights
Financial Highlights In billion RMB 2Q2026 2Q2025 YoY 1Q2026 QoQ Total Revenue 204.8 184.5 +11% 196.5 +4% Value-added Services 98.4 91.4 +8% 96.1 +2% Social Networks 32.5 32.2 +0.8% 31.9 +2% Domestic Games1 47.3 40.4 +17% 45.4 +4% International Games 18.6 18.8 -0.8% 18.8 -0.7% Marketing Services 43.
Slide 5: Key Services Update
Key Services Update Weixin & WeChat • #1 mobile community China • MAU at 1,439m • #1 by users and revenue QQ Global • Mobile devices MAU at Games • #1 by revenue 520m Video • #1 by paid subscriptions Mobile Payment Music Digital • #1 by MAU & DAU • #1 by paid subscriptions Content FinTech Literature
Slide 6: 2. Strategy Review
2. Strategy Review
Slide 7: AI Strategy Update
AI Strategy Update • Existing businesses are growing solidly due to intrinsic moats and AI enablement – Moats arise from network effects, depth and value added along supply chain, IP, low take rates, regulatory requirements and private data. AI is deployed across Weixin, games and advertising and ge
Slide 8: Hy Foundation Model: Accelerating Progress
Hy Foundation Model: Accelerating Progress Big step up versus Hy3 preview Stronger agent capabilities More reliable product experience • Based on feedback collected on 50+ • In productivity scenarios such as coding, • Widely usable in multiple agentic use cases products, we further improved the qual
Slide 9: Hy Foundation Model: Accelerating Progress
Hy Foundation Model: Accelerating Progress Deep product integration WorkBuddy Yuanbao Games Weixin Increases task success rate Delivers leading execution Enhances quality and efficiency Deployed in multiple high- and cut time-to-completion, quality in information retrieval, in AI teammate creation a
Slide 10: WorkBuddy & CodeBuddy: Leading in Productivity AI
WorkBuddy & CodeBuddy: Leading in Productivity AI Most-used productivity AI service in China • One-stop workspace that orchestrates multiple agents to handle complex work end-to-end • Attractive features include: 1) users can remotely control via Weixin and WeCom, as well as directly via PC; 2) acce
Slide 11: Driving Broader Adoption of AI among Consumers
Driving Broader Adoption of AI among Consumers Xiaowei – consumer agentic AI in Weixin • Released prototype to deliver embedded and context-aware AI experience in Weixin, leveraging Weixin’s social graph, knowledge graph, merchant reach and payment functionality Weixin customised model WeLM Content
Slide 12: 3. Business Review
3. Business Review
Slide 13: Revenue
Revenue Revenue Growth (YoY %) +11% +10% +7% +6% +8% +8% +11% +13% +15% +15% +13% +9% +11% Revenue by Segment (billion RMB) 204.8 192.9 194.4 196.5 1% 184.5 1% 1% 1% 180.0 172.4 1% 167.2 1% 159.5 161.1 1% 30% 154.6 155.2 1% 31% 149.2 1% 1% 30% 31% 1% 1% 30% 30% 1% 32% 33% 33% 31% 32% 34% 35% 21% 19%
Slide 14: Gross Profit
Gross Profit Gross Profit Growth (YoY %) +22% +23% +25% +23% +21% +16% +17% +20% +22% +22% +19% +11% +13% Gross Profit by Segment (billion RMB) 118.4 111.3 108.8 108.3 105.0 100.5 27% 90.7 28% 88.8 27% 28% 83.9 85.9 28% 27% 76.5 77.6 70.8 29% 29% 21% 28% 28% 19% 19% 28% 31% 20% 23% 26% 18% 19% 18% 2
Slide 15: Value-added Services
Value-added Services In billion RMB Social Networks +8% +2% • Revenue was up 1% YoY, driven by increased revenue from app-based YoY QoQ games item sales, partially offset by decreased revenue from long-form video 98.4 96.1 98.4 subscriptions 91.4 • Long-form video subscription revenue decreased 6% Y
Slide 16: Communications & Social Networks
Communications & Social Networks • Total time spent grew over 20% YoY in 2Q26, benefiting from enriched content, upgraded interactive features and introducing a new multi-variable content ranking system • Added content which appeals to younger users through IP partnerships with game studios, music l
Slide 17: Domestic Games
Domestic Games Delta Force VALORANT PC • Average DAU achieved lifetime high in 2Q26, • Average DAU hit lifetime high in 2Q26, fueled by driven by Burst Fest campaign, first professional Skirmish: Ascension mode with round-progressive league final and global 20v20 tournament weapons, and Summit map w
Slide 18: International Games
International Games League of Legends • DAU increased YoY in 2Q26, mainly driven by ARAM: Mayhem mode • League Classic, a nostalgic mode launched in July, re-engages longtime fans by recreating early-era gameplay with pre-rework champions, classic runes, and original Summoner’s Rift map layout Warfr
Slide 19: Marketing Services
Marketing Services In billion RMB +22% +14% Overall YoY QoQ • Revenue grew 22% YoY, driven by higher eCPM and impressions. Most major categories increased marketing spending on our platforms YoY, including eCommerce, Internet services and local services • We upgraded our automated campaign managemen
Slide 20: FinTech and Business Services
FinTech and Business Services In billion RMB +9% +0.7% FinTech Services YoY QoQ • Revenue grew YoY, driven by increases in commercial payment, wealth management, and consumer loan services • For commercial payment, number of transactions grew YoY, while decline in value per transaction YoY continued
Slide 21: 4. Financial Review
4. Financial Review
Slide 22: Income Statement
Income Statement In billion RMB 2Q2026 2Q2025 YoY 1Q2026 QoQ Revenue 204.8 184.5 +11% 196.5 +4% Gross profit 118.4 105.0 +13% 111.3 +6% Operating expenses (50.6) (41.3) +23% (45.2) +12% Other gains/(losses), net (0.5) (3.6) -87% 1.3 NA Operating profit 67.3 60.1 +12% 67.4 -0.1% Net gains from invest
Slide 23: Gross Margins
Gross Margins 55.8 56.9 56.4 55.7 56.6 57.8 52.6 53.3 53.1 52.6 49.5 50.0 47.5 Overall Gross Margin (%) 62.6 63.9 59.6 60.4 61.2 59.5 55.5 57.3 57.0 57.5 55.9 54.0 53.7 Value-added Services (%) 56.8 57.7 57.6 56.7 59.7 57.3 54.8 55.6 53.0 55.5 55.0 52.3 48.9 Marketing Services (%) 50.3 52.1 50.2 50.
Slide 24: Operating Expenses
Operating Expenses S&M R&D G&A (excl. R&D) in billion RMB in billion RMB in billion RMB +26% +5% +35% +21% -1% +2% YoY QoQ YoY QoQ YoY QoQ 27.2 27.2 22.6 11.9 11.3 11.9 20.3 11.6 11.5 11.3 11.5 9.4 2Q25 2Q26 1Q26 2Q26 2Q25 2Q26 1Q26 2Q26 2Q25 2Q26 1Q26 2Q26 Non-IFRS Non-IFRS Non-IFRS 2Q26 S&M grew b
Slide 25: Non-IFRS Operating Margin
Non-IFRS Operating Margin Non-IFRS Operating Margin excl. New AI Products¹ 43.0 42.0 39.9 40.2 39.2 39.3 36.8 36.6 38.5 38.5 36.3 37.5 37.6 36.9 34.5 35.8 33.4 31.7 30.9 (%) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 1. New AI Products primarily consist of Hy, Yuanbao, CodeBudd
Slide 26: CAPEX, FCF and Cash Position
CAPEX, FCF and Cash Position In billion RMB 2Q2026 2Q2025 YoY 1Q2026 QoQ Operating CAPEX 51.8 17.9 +190% 31.2 +66% Non-operating CAPEX 1.0 1.2 -20% 0.7 +30% Total CAPEX 52.8 19.1 +176% 31.9 +65% Free Cash Flow (13.8) 43.0 NA 56.7 NA Total Cash 511.2 468.4 +9% 533.7 -4% Less: Total Debt (453.0) (393.
Slide 27: 5. Q&A
5. Q&A
Slide 28: Thank you!
Tencent Holdings Limited 2026 Second Quarter Results Presentation Thank you! https://www.tencent.com/ir