Tencent Holdings Limited (TCEHY) Announced Q1 2026 Earnings on May 13, 2026, Reporting "total revenue was RMB 196.5 billion, up 9% year-on-year."

Tencent Holdings Limited reported its financial results for the first quarter of 2026.

Management announced "total revenue was RMB 196.5 billion, up 9% year-on-year". During the first quarter, "Gross profit was RMB 111.3 billion, up 11% year-on-year" and "Overall gross margin was 57%, up 1 percentage point year-on-year". Executives highlighted that "Free cash flow was RMB 56.7 billion, up 20% year-on-year". On a reported basis for the quarter, "Operating profit was RMB 67.4 billion, up 17% year-on-year" and "Net profit attributable to equity holders was RMB 67.9 billion, up 11% year-on-year".Discussing strategic priorities, the company emphasized its progress in artificial intelligence.

Management stated "we start 2026 by making significant initial progress on our new AI products so as continue to utilize AI to grow our existing core business". The company noted that "In April, we launched Hunyuan 3 Preview" which has "already become a leading reasoning model in China". Executives also highlighted their focus on productivity tools, stating "it has become increasingly evident that agent AI represents a breakthrough use case" and "Tencent has established an early lead in agent AI deployment evidenced by the leading DAU of our product, WorkBuddy".Providing forward guidance, management addressed infrastructure investments and capital returns.

The company guided that "you should expect a substantial increase in CapEx, especially in the second half of this year as more China designed ASICs become available to us month by month through the year". Regarding capital allocation, executives confirmed "we're accelerating the process of liquidizing some of that investment portfolio and that will enable us to sustain buybacks going through the rest of this year".The company shared several product updates across its divisions. In domestic games, "Honor of Kings and Peacekeeper Elite achieved record highs in gross received during the first quarter of 2026". The newly released game Roko Kingdom World achieved "over 13 million average DAUs" in its first month since launch. In the enterprise segment, "Tencent Cloud's international business grew its revenue over 40% year-on-year". Additionally, in digital content, management noted "we cemented our leadership in animated content with 8 of our self-commissioned series ranking among the top 10 across all video platforms in China during the quarter".