What are the performance expectations for TENCENT in the second quarter? As of June 8, 2026, data from the quarterly performance forecast indicates projected revenues of 201.6 to 211.1 billion yuan, representing year-on-year growth of 9.3% to 14.4%. Projected net profit is between 55.31 and 63.22 billion yuan, with a year-on-year change ranging from -0.6% to 13.7%. The projected adjusted net profit is forecast to be 66.25 to 72.26 billion yuan, indicating a year-on-year increase of 5.1% to 14.6%. Attention will focus on whether subsequent financial disclosures can exceed these expectations.
Latest Analyst Perspectives
Analysis suggests that for the first quarter of 2026, TENCENT reported total revenue of 196.5 billion yuan, a 9% increase year-on-year. Gross profit was 111.3 billion yuan, up 11%, with a gross margin of 57%. Non-GAAP net profit attributable to shareholders reached 67.9 billion yuan, a 5% increase. Value-added services revenue was 961 billion yuan, with domestic games revenue at 454 billion yuan (up 6%) and international games revenue at 188 billion yuan (up 13%). Advertising revenue grew 20% to 382 billion yuan, while FinTech and Business Services revenue increased 9% to 599 billion yuan.
The Spring Festival holiday caused some revenue deferral, but the new game "Lock Kingdom: World" performed strongly, achieving over 13 million daily active users in its first month. Advertising growth was driven by both technology and traffic, with the intelligent placement platform AIM+ now accounting for 30% of advertisers' total budgets. AI development within the WeChat ecosystem is progressing steadily, with the HY3preview model reportedly far exceeding expectations. Tencent Cloud's computing power supply is expected to accelerate, though internal usage will be prioritized.
Breaking down by segment: 1) Value-Added Services: Domestic games revenue grew 6% year-on-year, while international games revenue grew 13%. 2) Advertising Business: Revenue increased 20% year-on-year, with notable growth in ad spending from internet services, e-commerce, and the gaming industry. 3) WeChat Ecosystem AI: The HY3preview model's performance has significantly exceeded expectations and development is progressing steadily. 4) Tencent Cloud Computing Power: The release of domestic GPU capacity in the second half of the year is expected to accelerate computing power supply.
Other analysis notes that the Q1 2026 financial report shows growth in both revenue and profit. Revenue reached 196.5 billion yuan, a 9% year-on-year increase, while operating profit and net profit attributable to shareholders grew 17% and 21%, respectively. Monthly active WeChat users continued to grow, reaching 1.432 billion. Value-added business revenue grew 4%, with the games business remaining stable, posting 8% revenue growth. Marketing services revenue grew 20%, benefiting from AI-driven advertising technology upgrades. FinTech and Business Services revenue grew 9%, with enterprise services revenue up 20% due to increased demand for AI and cloud services.
Risk Warning: This content is for informational purposes only and does not constitute any investment advice. Investment decisions carry inherent risks.
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