Tencent Holdings Limited
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Range $106 – $106
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About the company
Tencent Holdings Limited is an investment holding company that specializes in providing a wide array of value-added services (VAS) and online advertising solutions, operating both within Mainland China and across international markets. The company's diverse business operations are structured into several key segments: Value-Added Services (VAS), Online Advertising, FinTech and Business Services, and other various ventures. Tencent's offerings encompass popular online games, extensive social networking platforms, cutting-edge FinTech and cloud computing solutions, and comprehensive digital advertising services.
- CEO
- Huateng Ma
- IPO
- 2010
- Employees
- 115,849
- HQ
- Shenzhen, GD, CN
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Similar companies
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- Market Cap
- $471.68B
- P/E
- 12.90
- Fwd P/E
- 1.83
- PEG
- 0.94
- P/S
- 3.82
- P/B
- 2.65
- EV/EBITDA
- 9.11
- Div Yield
- 1.35%
- Gross Margin
- 56.19%
- Op Margin
- 32.65%
- Net Margin
- 29.84%
- ROE
- 20.47%
- ROIC
- 12.32%
Latest fiscal year · YoY change
- Revenue
- $731.28B+10.8%
- Gross Profit
- $422.59B+21.0%
- Op Income
- $238.07B
- Net Income
- $218.72B+12.7%
- EPS
- $24.05+14.9%
- OCF Growth
- +17.2%
- FCF Growth
- +17.0%
- 52W High
- $86.00
- 52W Low
- $48.13
- 50D MA
- $53.85
- 200D MA
- $60.39
- Beta
- 0.73
- RSI (14)
- 53
- Avg Volume
- 3.81M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Tencent delivered 11% revenue growth with stronger gaming, ads and cloud trends, while sharply ramping AI CapEx and positioning Hunyuan, WorkBuddy and Weixin as the core of its next growth phase.· August 12, 2026
- Revenue rose 11% year over year to RMB 204.8 billion; non-IFRS net profit rose 9% to RMB 68.4 billion.
- AI spending stepped up sharply: operating CapEx was RMB 51.8 billion, up 190% year over year, driving free cash flow to negative RMB 13.8 billion before compute prepayments.
- Domestic games, marketing services and cloud were the main growth engines, while video accounts, Mini Shops and AI ad tools supported monetization.
- Management said Hunyuan 3 is already driving adoption and token usage, and Hunyuan 4 is expected later this year as the model roadmap continues.
- Tencent emphasized it can fall back on renting compute if needed, but says the bigger long-term prize is building a profitable AI-native business around WorkBuddy, cloud and models.
Second-quarter 2026 total revenue was RMB 204.8 billion, up 11% year on year. Gross profit was RMB 118.4 billion, up 13% year on year; gross margin was 58%, up 1 percentage point year on year. Operating profit was RMB 67.3 billion, and on a non-IFRS basis operating profit was RMB 75.6 billion, up 9% year on year; excluding new AI products, non-IFRS operating profit was RMB 86.1 billion, up 19%. Non-IFRS net profit attributable to equity holders was RMB 68.4 billion, up 9% year on year, and diluted EPS was RMB 7.433, up 9%. Segment revenue included VAS at RMB 98 billion, marketing services at RMB 44 billion, and FinTech and Business Services at RMB 60 billion. Operating CapEx was RMB 51.8 billion, up 190% year on year and 66% quarter over quarter; free cash flow was negative RMB 13.8 billion, or RMB 37.6 billion excluding compute prepayments. The company did not give formal next-quarter or full-year financial guidance, but said AI CapEx is being made in a lump sum this year and next year, while cloud revenue should continue benefiting from AI-related demand, international expansion and pricing changes.
Pony Ma framed the quarter as evidence that Tencent is progressing toward a “new AI-empowered Tencent” across intelligence, applications and infrastructure. He highlighted Hunyuan 3’s production release, the growth of WorkBuddy and CodeBuddy, the procurement of more compute, and continued strength in legacy businesses like marketing services, new games and video accounts. His tone was confident and strategic, emphasizing that AI is being built on top of Tencent’s existing scale and distribution.
John Lo focused on the reported numbers and the cost structure behind them. He detailed the 11% revenue increase, 13% gross profit growth, 58% overall gross margin, and the higher spend profile, including selling and marketing expenses of RMB 11.9 billion, R&D of RMB 27.2 billion, and CapEx of RMB 51.8 billion. He also cited a net cash position of RMB 58.2 billion at quarter end versus RMB 146.9 billion at March 31, 2026, reflecting CapEx payments of RMB 59.3 billion and 2025 dividend payments of RMB 41.6 billion. His comments stressed that AI infrastructure and prepayments temporarily दबressed free cash flow, but the company still has flexibility across operating cash flow, balance sheet cash and debt capacity.
Analysts focused heavily on the payback for the AI CapEx surge, the economics of WorkBuddy and Xiaowei, and whether Tencent will prioritize cloud or buybacks as capital allocation evolves. Management said the compute being purchased could be rented out for a decent return immediately if needed, but Tencent is choosing to prioritize building its own models and AI applications first because that creates more durable long-term value. On Xiaowei and Weixin, management argued that AI will expand ecosystem usefulness and monetization rather than merely shift existing transactions, while on ad growth they said the pace will fluctuate but AI targeting, higher engagement and more closed-loop advertising should support a strong relative outperformance versus the market.
The call suggested Tencent already has multiple monetization paths from AI: WorkBuddy is gaining traction, Hunyuan 3 is seeing roughly 6x higher average daily token usage than the preview version, and cloud is benefiting from AI-related demand. Management also pointed to strong momentum in gaming, video accounts and marketing services, plus the option to rent compute if returns warrant it, which they presented as downside protection.
The main risk is the scale of AI investment relative to near-term earnings and cash flow: CapEx surged to RMB 51.8 billion and free cash flow was negative RMB 13.8 billion before compute prepayments. Management also acknowledged the China ad market remains choppy, domestic token pricing is low, and AI product economics still rely on a mix of free and paying users, so the timing of durable monetization remains uncertain.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 100.0%
- Shares Outstanding
- 9.01B
- Float Shares
- 9.01B
of shares held by institutions
41 13F filers
Congressional trading
Senate and House stock disclosures for TCEHY, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Sheri BiggsHouse · SC03 | Sell | Mar 18, 25 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Apr 9, 25 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Jun 21, 24 | Filing → |
| Josh GottheimerHouse · NJ05 | Buy | Apr 30, 24 | Filing → |
| Daniel GoldmanHouse · NY10 | Sell | Jul 10, 23 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | May 15, 23 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | May 16, 23 | Filing → |
| Chuck FleischmannHouse · TN03 | Sell | Apr 10, 23 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Jan 11, 23 | Filing → |
| Josh GottheimerHouse · NJ05 | Buy | Oct 17, 22 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Sep 15, 22 | Filing → |
| Josh GottheimerHouse · NJ05 | Buy | Apr 19, 22 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Mar 15, 22 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Dec 28, 21 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Raiffeisen Bank International AG | 297.85K | ▲ 38.77K |
| Ramirez Asset Management, Inc. | 204.73K | ▲ 37.01K |
| Cortland Associates Inc/Mo | 190.85K | ▼ 6.88K |
| Drw Securities, LLC | 142.29K | ▼ 103.36K |
| Triglav Investments, D.O.O. | 90.47K | ▲ 3.60K |
| Henry James International Management Inc. | 86.12K | ▲ 81 |
| Madison Asset Management, LLC | 60.20K | ▲ 21.77K |
| Generali Investments Cee, Investicni Spolecnost, A.S. | 59.91K | 0 |
| Rhumbline Advisers | 25.27K | ▲ 2.94K |
| Sterling Capital Management LLC | 22.37K | ▲ 5.94K |
| Boston Common Asset Management, LLC | 17.69K | ▲ 4.42K |
| Trivant Custom Portfolio Group, LLC | 16.66K | ▼ 1.41K |
Held by 35 ETFs
Biggest fund positions in TCEHY by dollar value.
Our TCEHY coverage
Recent articles, reports, and earnings notes.
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