Tencent Holdings Ltd

00700: XHKG (HKG)

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Tencent Earnings: AI Spending Weighs on Near-Term Cash Flow, but Core Business Anchors Valuation

Ivan Su

Aug 12, 2026

Tencent's second-quarter revenue grew 11% year on year. Adjusted operating profit rose 9%, weighed down by artificial intelligence investments. Capital expenditure jumped 190% to CNY 52 billion as the company accelerated AI infrastructure spending, driving free cash flow to negative CNY 14 billion.

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Tencent Holdings Ltd

Tencent Earnings: AI Spending Weighs on Near-Term Cash Flow, but Core Business Anchors Valuation

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