Tencent posted a beat on second-quarter revenue thanks to an acceleration at its China gaming unit and AI-driven advertising, but its core profit missed analyst expectations.
The Chinese tech giant also reported a rise in capital expenditure in the quarter
Here’s how Tencent did in the second quarter versus LSEG estimates: – Revenue: 204.78 billion Chinese yuan ($30.36 billion) versus 202.17 billion yuan expected – Net profit: 56 billion Chinese yuan versus 61.82 billion yuan expected Revenue rose 11% year-on-year while profit was up nearly 1%. Tencent said that, stripping out one-time factors and certain non-cash items, its profit was 68.4 billion yuan in the quarter, up 9% versus the same time last year. Tencent said its domestic games revenue came in at 47.3 billion yuan, up 17% year-on-year, driven by key titles such as Delta Force and Valorant PC and Mobile.
That was faster than the 6% growth the division saw in the first quarter of this year, and the same level seen in the second quarter of 2025. Tencent stock was down 26% year-to-date at Wednesday’s closing bell in Hong Kong, as the company faces intense competition in China in AI and investors grow jittery about its rising spending. The company also saw a slowdown in gaming growth in the first quarter of the year.