Tencent FY2026 Q2 Earnings Release

2026 Second Quarter
Results Presentation
Aug 12, 2026

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 ”) and its group
companies .These forward -looking statements are based on information currently available to Tencent and are stated here on the basis of the outlook at
the time that this presentation was produced .The Company undertakes no obligation to publicly update any forward – looking statement, whether written
or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise .The forward -looking statements
are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control .The forward -looking statements may
prove to be incorrect and may not be realised in the future . Underlying the forward -looking statements are a large number of risks and
uncertainties .Therefore you should not rely on any of these forward -looking statements .Please see our various other public disclosure documents for a
detailed discussion of those risks and uncertainties .
This presentation also contains some unaudited non -IFRS financial measures which should be considered in addition to, but not as a substitute for,
measures of the Company’s financial performance prepared in accordance with IFRS .In addition, these non -IFRS financial measures may be defined
differently from similar terms used by other companies . The Company’s management believes that the non -IFRS financial measures provide investors
with useful supplementary information to assess the performance of the Company ’s core operations by excluding certain non -cash items and certain
impact of acquisitions . For further explanation of our non -IFRS measures and reconciliations between our IFRS and non -IFRS results, please refer to our
earnings announcement .
In addition, information relating to other companies and the market in general presented in these materials has been obtained from publicly available
information and other sources .The accuracy and appropriateness of that information has not been verified by Tencent and cannot be guaranteed . All
materials contained within this presentation are protected by copyright law and may not be reproduced, distributed, transmitted, displayed, published or
broadcast without the prior, express written consent of Tencent .
The reporting currency of the company is Renminbi .For the purpose of this presentation, all figures quoted in US dollars are based on the exchange rate
of US $1 to RMB 6.8109 for 2Q2026 .
2
Cautionary Note

3
1. Overview

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 Games 1 47.3 40.4 +17% 45.4 +4%
International Games 18.6 18.8 -0.8% 18.8 -0.7%
Marketing Services 43.6 35.8 +22% 38.2 +14%
FinTech and Business Services 60.3 55.5 +9% 59.9 +0.7%
Others 2.5 1.8 +37% 2.3 +10%
Gross Profit 118.4 105.0 +13% 111.3 +6%
Non -IFRS
Operating Profit excl. New AI Products 2 86.1 72.4 +19% 84.4 +2%
Operating Profit 75.6 69.2 +9% 75.6 stable
Operating Margin 36.9% 37.5% -0.6ppt 38.5% -1.6ppt
Net Profit Attributable to Equity Holders 68.4 63.1 +9% 67.9 +0.8%
Financial Highlights
1. Domestic Games refers to our games business in the PRC excluding the Hong Kong Special Administrative Region, the Macao Speci al Administrative Region and Taiwan
2. New AI Products primarily consist of Hy , Yuanbao , CodeBuddy , WorkBuddy , and Xiaowei
4

Weixin & WeChat
• #1 mobile community
• MAU at 1,439 m
QQ
• Mobile devices MAU at
520 m
Mobile Payment
• #1 by MAU & DAU
Mobile Browser
• #1 by MAU
Language Input
• #1 by MAU
Key Services Update
Games
Communications
& Social Networks
Utilities
5
1. All rankings above refer to China market, unless otherwise stated. Company data and QuestMobile, 2Q26
2. IDC Quarterly Public Cloud Services Tracker, 1Q26
3. WorkBuddy & CodeBuddy – Analysys , June 2026
PaaS
• #2 by revenue 2
SaaS
• #1 productivity office software
mobile applications by total
user time spent
AI Productivity Tool
• #1 by monthly interactions on
PC 3
China
• #1 by users and revenue
Global
• #1 by revenue
Video
• #1 by paid subscriptions
Music
• #1 by paid subscriptions
Literature
• #1 by users’ paid revenue
FinTech
Cloud
Digital
Content

2. Strategy Review

AI Strategy Update
7
• 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 generating positive results . Provides strong financial support for new AI initiatives
• New AI initiatives – built robust foundation and accelerating growth ; potential to generate substantial returns on upside from franchise
products (e .g., Hy, WorkBuddy , Xiaowei ); clear downside protection as most of investment is in AI infrastructure, which we can choose to
rent externally at attractive prices via Tencent Cloud if needed
Tencent
AI
Leading in productivity AI – WorkBuddy & CodeBuddy 2
Accelerating progress – Hy foundation model 1
Driving broader adoption of consumer AI – Xiaowei & Yuanbao 3
Investing in AI infrastructure – for internal use cases and for Tencent Cloud 4

Hy Foundation Model: Accelerating Progress
8
Big step up versus Hy3 preview
• Based on feedback collected on 50 +
products, we further improved the quality and
diversity of post -training data while scaling up
RL training
• Improved across task completion rate,
hallucination rate, and multi -turn question
error rate
Stronger agent capabilities
• In productivity scenarios such as coding,
office work, financial modeling, and front -end
design, Hy 3 now serves as a reliable, cost –
effective model option for everyday
WorkBuddy tasks
• Advantage most substantial in front -end
development, user interface design, data
analysis, and software development &
deployment
More reliable product experience
• Widely usable in multiple agentic use cases
• Implemented fine -grained data cleaning and
training constraints to reduce hallucination
rate
• Improved long -dialogue performance through
joint optimisation of SFT and RL
• Hy 3 significantly outperforms similar -sized models, while rivaling flagship
open -source models with substantially larger parameter sizes,
demonstrating higher intelligence density
• Ranked top 3 on OpenRouter by token usage
• Hy 3 daily token usage ~7x compared to Hy 3 preview across all channels
during paid period, reflecting accelerated external customer demand
Token usage increased significantly A leading model in its size
Hy 3’s production version is a stepping -stone toward Hy family of models attaining SOTA capabilities in future, while providing users with cost
performance efficiency today

Hy Foundation Model: Accelerating Progress
9
Deep product integration
Established a system for fast model iteration
• Scaling more powerful RL to substantially upgrade models after pre -training is done
• Upgrading Hy’s multi -modal capabilities
• Training a larger parameter model, Hy 4, to be released later this year
• Accelerating technical iteration and pushing boundaries of model intelligence, toward SOTA level capabilities
Increases task success rate
and cut time -to -completion,
particularly for complex agent
workflows
Delivers leading execution
quality in information retrieval,
data processing, document
workflows, and everyday
decision -making
Enhances quality and efficiency
in AI teammate creation and
code review for games
including Peacekeeper Elite
Deployed in multiple high –
frequency scenarios, including
powering AI assistant in Official
Accounts and developer tools
for Mini Programs
• By continuously feeding real -world product usage and domain feedback into model training, model -product co -design approach allows Hy to validate
model accuracy and identify edge cases, enabling faster model iteration and sustained performance gains
Return consideration
• Build a large and valuable AI native business that consists of applications, own model, and compute
WorkBuddy Yuanbao Games Weixin

10 1. Source: millions of Interactions in June 2026, Analysys
27.5
12.8 7.9 3.5 1.6 1.6 1.3 1.2 1.1 0.9
WorkBuddy &
CodeBuddy
Trae IDE
(Domestic)
QoderWork QClaw Coze Marvis Wukong LobsterAI AutoClaw MiniMax agent
WorkBuddy & CodeBuddy ranked #1 among PC -based AI -native office agents in China
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) access to 70 K+ skills from Tencent
Cloud’s SkillHub and ability to interact with products in Tencent’s ecosystem including Tencent Docs, Tencent Meeting, and ima ; and 3) can execute
transactions by embedding SkillPay + Weixin Pay inside the task flow
• Growing fast with high retention rates
• High willingness to pay as directly contributes to productivity
Return consideration
• Unlocks huge opportunities in productivity market, including coding and existing office work scenarios
• Current focus is on market education and extending leadership position ; economics to improve over time as we enhance paying user benefits and
increase penetration, and as we reduce token costs through agent efficiency, inference efficiency and model optimisation
• Tencent applications already widely used within and by enterprises (e .g., Weixin, WeCom, Tencent Meeting ) – WorkBuddy provides new way to
monetise enterprise relationships

Driving Broader A doption of AI among Consumers
111111
Xiaowei – consumer agentic AI in Weixin
Yuanbao – AI chat bot
• Focus on improving capabilities and user experience, particularly in search, automatic speech recognition and text -to -speech
• Can address broader long -tail AI needs for consumers, including multimodal generation
• Plays an important role in the co -design flywheel, as its conversational use cases generate valuable feedback to help improve Hy models
• Over time, Yuanbao -developed functionalities can become atomic capabilities for use in WorkBuddy , CodeBuddy , Weixin , QQ Browser , etc .
• Released prototype to deliver embedded and context -aware AI experience in Weixin , leveraging Weixin ’s social graph, knowledge graph, merchant
reach and payment functionality
• While the prototype can technically handle advanced agentic workflows, Xiaowei currently requires user intervention and multi -step confirmations as
safety measures
• We are working to fulfill user needs in Weixin ’s environment through phased rollout going forward : 1) enhance core capabilities including
conversation, memory and recommendation, 2) integrate more services and content, and 3) strengthen AI infrastructure and harness to improve
GPU utilisation and explore on -device inference in the future
Weixin customised model WeLM
Laser focus on user privacy, Weixin use
cases and cost efficiency
Content personalisation
Helps users navigate and derive insight
from diverse Weixin content universe in
a personalised and efficient way
Service & transaction enablement
Leverages unique Mini Programs
ecosystem to help users discover
products, make purchase decisions,
and place orders, laying groundwork for
agent -to -agent transaction loop
Return consideration : Upgrade Weixin for AI era with well controlled cost, accelerating growth and monetisation of the Weixin ecosystem

3. Business Review

+11% +10% +7% +6% +8% +8% +11% +13% +15% +15% +13% +9% +11%
Revenue
13
20% 19% 18% 19% 19% 18% 17% 18% 18% 17% 16% 16% 16%
21% 21% 18% 22% 21% 22% 20% 24% 22% 22% 20% 23% 23%
9% 9% 9%
8% 9% 9% 9%
9% 10% 11% 11% 10% 9% 17% 16% 19% 17% 19% 18% 20%
18% 19% 19% 21% 19% 21% 32% 34% 35% 33% 31% 32% 33%
30% 30% 30% 31% 31% 30%
1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
149.2 154.6 155.2 159.5 161.1 167.2 172.4 180.0 184.5 192.9 194.4 196.5 204.8
2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
Revenue Growth (YoY %)
Revenue by Segment (billion RMB)

Gross Profit
14
+22% +23% +25% +23% +21% +16% +17% +20% +22% +22% +19% +11% +13%
57% 55% 48% 54% 52% 53% 49%
55% 53% 54% 49% 54% 53%
17% 18% 22%
17% 19% 18% 22%
18% 20% 19% 23% 19% 21%
26% 28% 31%
28% 28% 29% 29%
27% 28% 27% 28% 28%
27%
70.8
76.5 77.6
83.9 85.9 88.8 90.7
100.5 105.0 108.8 108.3 111.3
118.4
2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
Gross Profit Growth (YoY %)
Gross Profit by Segment (billion RMB)

Value – added Services
In billion RMB
15
Social Networks
32.2 32.5 31.9 32.5
40.4
47.3 45.4 47.3
18.8
18.6 18.8 18.6
91.4
98.4 96.1 98.4
2Q25 2Q26 1Q26 2Q26
Domestic Games International Games
+8%
YoY
+2%
QoQ
+17%
+0.8%
+4%
+2%
-0.8% -0.7%
Social Networks
• Revenue was up 1% YoY, driven by increased revenue from app -based
games item sales, partially offset by decreased revenue from long -form video
subscriptions
• Long -form video subscription revenue decreased 6% YoY, but our exclusive
drama series, The Lead , ranked #1 industry -wide 1 in 2Q 26 .
• Audio subscription revenue increased 8% YoY, driven by higher music ARPU
and enriched content . We facilitated users discovering new music and
following new artists by enabling one -click access from Video Accounts to
QQ Music
• We believe that bringing Ximalaya into Tencent Group will benefit resilience
and diversity of TME’s business model, deepen content supply relationship
between China Literature and Ximalaya, and provide users with new content
formats such as audiobooks and podcasts
Domestic Games
• Revenue grew 17 % YoY, primarily driven by Delta Force , VALORANT PC ,
VALORANT Mobile and recently released Roco Kingdom : World
International Games
• Revenue was down 1% YoY (up 4% YoY in constant currency), as growth
from Wuthering Waves and VALORANT PC was offset by certain Supercell’s
games
1. Source: Enlightent, by video views across all long -form video platforms in China for 2Q26

Communications & Social Networks
16
• Total time spent grew over 20 % YoY in 2Q 26 , 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 labels,
and TV shows
• Created new ad inventory in creators’ profile feed, providing new revenue sharing opportunity to creators,
and thereby expanding the population of creators that generate direct revenue from within Video Accounts
• GMV generated from centralised eCommerce gateway page grew significantly YoY, as we introduced
brand and discount zones, and broadened product selection
• Introduced new marketing tools such as viral lucky draws, helping merchants to enhance brand awareness
and drive product discovery
• Upgraded incentives to extend customer lifecycles and lifetime value
Video Accounts
Mini Shops

Domestic Games
17
1. Source: QuestMobile
2. Source: Sensor Tower
• Average DAU achieved lifetime high in 2Q 26 ,
driven by Burst Fest campaign, first professional
league final and global 20 v20 tournament
• Integrated AI tools across production workflows,
such as data agents for performance analysis and
Hy 3D model for asset generation
Delta Force
• Average DAU hit lifetime high in 2Q 26 , fueled by
Skirmish : Ascension mode with round -progressive
weapons, and Summit map with droppable walls
• Expanded reach through influencer collaborations,
on -the -ground city events and 10 ,000 + Internet
café promotions
VALORANT PC
• #5 by average DAU 1 and #8 by gross receipts 2
across all mobile games in 2Q 26 , the highest –
ranked new title released YTD industry -wide
• Rapid content delivery cadence : added ~100
creatures and expanded map with 7 new regions
in ~3 months
Roco Kingdom: World
• Multi -platform SOC game adapted for China
players from Rust (highly regarded PC game,
generally ranked among top 20 on Steam by
PCU), by expanding to mobile devices and by
adding sandbox safe zone for new players
• Provides high risk and high reward gameplay in
which players strive to survive, build bases, and
win their server, over ~1 week competitive periods
Runaway Evolution

International Games
18
League of Legends
Arrows – Puzzle Escape
Warframe
• DAU grew YoY and gross receipts achieved lifetime high in 2Q 26 , benefiting from a new
wolf -themed Prime Warframe, Voruna Prime, and new storyline Jade Shadows :
Constellations
• TennoCon 2026 in July unveiled Warframe’s next major content update, Tau, bringing
players to the homeworld of the Sentients
• DAU increased YoY in 2Q 26 , 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
• #1 downloaded mobile game globally in 2Q 26 1. Collision -free clearing of intricate mazes
provides deeply satisfying and self -paced game experience
• Demonstrates that the innovative capabilities of Miniclip’s family of studios, supported by
Miniclip’s publishing expertise , can together pioneer and break out leaders in new genres of
casual game
• Monetises via in -app -advertising, revenue reported in marketing services segment
1. Source: Sensor Tower

Marketing Services
In billion RMB
35.8
43.6
38.2
43.6
2Q25 2Q26 1Q26 2Q26
+22%
YoY
+14 %
QoQ
19
Overall
• 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 management solution, AIM+, with
end -to -end execution capabilities for mini shop and mini drama advertisers,
enabling smart product selection, ad creative generation, and dynamic
bidding
• We significantly scaled up our ad AI recommendation system to capture user
interests with more granularity and improve conversions
Weixin
• Video Accounts’ ad impressions grew rapidly YoY, driven by higher video
views and ad load . We maintained below -industry ad load
• Mini Programs’ increasingly vibrant content ecosystem attracted rising
marketing spend from mini drama and mini game studios . Rewarded ads
delivered high conversions and resulted in rapid growth in eCPM

FinTech and Business Services
In billion RMB
55.5
60.3 59.9 60.3
2Q25 2Q26 1Q26 2Q26
+9%
YoY
+0.7 %
QoQ
20
FinTech Services
• 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 to narrow
• For wealth management, aggregated customer assets increased YoY,
benefitting from the popularity of automated investment strategies and
thematic index funds
Business Services
• Cloud revenue growth accelerated to low -twenties % YoY due to AI -related
demand, international expansion, and increased uptake for general cloud
services
• AI -related demand translated into increased revenue across GPU rental,
Model -as -a-Service, and WorkBuddy & CodeBuddy , although we are still
compute constrained
• Tencent Cloud international business expanded rapidly ; using Skills
developed with WorkBuddy & CodeBuddy , we accelerated speed of
conducting cloud migrations to Tencent Cloud

4. Financial Review

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 investments and others 11.2 2.6 +324% 1.9 +480%
Interest income 4.2 4.1 +2% 4.0 +4%
Finance costs (3.0) (3.9) -24% (3.0) stable
Share of profit /(loss) of associates & JV s, net (10.0) 4.5 NA 3.6 NA
Income tax expense (11.7) (11.4) +3% (14.5) -20%
Net profit 58.0 56.0 +3% 59.4 -2%
Net profit attributable to equity holders 56.0 55.6 +0.7% 58.1 -4%
Diluted EPS in RMB 6.104 5.996 +2% 6.302 -3%
Non -IFRS
Operating Profit excl. New AI Products 1 86.1 72.4 +19% 84.4 +2%
Operating profit 75.6 69.2 +9% 75.6 stable
Net profit attributable to equity holders 68.4 63.1 +9% 67.9 +0.8%
Diluted EPS in RMB 7.433 6.793 +9% 7.364 +0.9%
22
1. New AI Products primarily consist of Hy , Yuanbao , CodeBuddy , WorkBuddy , and Xiaowei

48.9 52.3 56.8 54.8 55.6 53.0 57.7 55.5 57.6 56.7 59.7 55.0 57.3
Marketing Services (%)
54.0 55.5 53.7
57.3 57.0 57.5 55.9
59.6 60.4 61.2 59.5 62.6 63.9
Value -added Services (%)
Gross Margins
38.4 40.9 43.9 45.6 47.6 47.8 47.1 50.3 52.1 50.2 50.7 52.1 52.1
2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
FinTech and Business Services (%)
23
47.5 49.5 50.0 52.6 53.3 53.1 52.6 55.8 56.9 56.4 55.7 56.6 57.8
Overall Gross Margin (%)

11.6 11.5 11.3 11.5
2Q25 2Q26 1Q26 2Q26
S&M
in billion RMB
Operating Expenses
24
R&D
in billion RMB
G&A (excl. R&D)
in billion RMB
20.3
27.2
22.6
27.2
2Q25 2Q26 1Q26 2Q26
Non -IFRS Non -IFRS Non -IFRS
9.4
11.9 11.3 11.9
2Q25 2Q26 1Q26 2Q26
+26%
YoY
+5%
QoQ
2Q26 S&M grew by 28% YoY and 5% QoQ
+35%
YoY
+21%
QoQ
2Q26 R& D grew by 41% YoY and 23% QoQ 2Q26 G&A (excl. R&D) grew by 5% YoY and 2% QoQ
-1%
YoY
+2%
QoQ

30.9
33.4
31.7
36.8 36.3
36.6
34.5
38.5
37.5 37.6
35.8
38.5
36.9
39.9
39.2
40.2
39.3
43.0
42.0
2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26
Non-IFRS Operating Margin
excl. New AI Products¹
(%)
Non – IFRS Operating Margin
25 1. New AI Products primarily consist of Hy , Yuanbao , CodeBuddy , WorkBuddy , and Xiaowei

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) (393.8) +15% (386.8) +17%
Net Cash 58.2 74.6 -22% 146.9 -60%
CAPEX, FCF and Cash Position
26
• Repurchased ~37 million shares for a consideration of ~RMB14.7 billion and paid cash dividend of ~RMB41.6 billion during
2Q26
• As at 30 Jun 2026, the f air value of our shareholdings 1 in listed investee companies (excluding subsidiaries) was ~RMB487
billion (USD72 billion) and the carrying book value of our shareholdings in unlisted investee companies (excluding
subsidiaries) was ~RMB388 billion (USD57 billion)
1. Including those held via special purpose vehicles, on an attributable basis.

5. Q&A

Tencent Holdings Limited
2026 Second Quarter Results Presentation
Thank you!
https://www.tencent.com/ir