Tencent Holdings Limited (HK:0700)
:0700
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Earnings Data
Report Date
Aug 19, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
8.55Last Year’s EPS
7.85Same Quarter Last Year
Strong Buy
Based on 31 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasizes solid underlying financial performance — revenue, gross profit, free cash flow and margins all improved YoY — alongside notable commercial successes in gaming, cloud international expansion and user engagement metrics. Management highlighted meaningful early AI product and model achievements (Hunyuan 3 Preview, widespread internal deployments, strong token adoption) and signaled a material CapEx ramp to support AI scaling. Offsetting these positives are higher near-term costs (S&M, R&D, CapEx), short-term compute capacity constraints that delay cloud monetization, modest softness in some consumer segments (social revenue and long-form subscription declines) and several timing/uncertainty items around product monetization and rollout. On balance, the highlights — recurring revenue growth, cash generation, clear AI product traction and strategic roadmap — outweigh the lowlights related to near-term investment drag and execution timing risks.Company Guidance
Revenue and Profit Growth
Total revenue RMB 196.5 billion, up 9% YoY (11% on a like-for-like basis adjusting for later Spring Festival). Gross profit RMB 111.3 billion, up 11% YoY. Non-IFRS operating profit RMB 75.6 billion, up 9% YoY; non-IFRS net profit attributable to equity holders ~RMB 68 billion, up 11% YoY. Diluted EPS RMB 7.364, up 12% YoY.
Strong Free Cash Flow and Net Cash Position
Free cash flow RMB 56.7 billion, up 20% YoY and up 67% QoQ. Net cash position RMB 146.9 billion, up ~37% QoQ (~RMB 40 billion), reflecting robust cash generation and balance sheet flexibility.
Gaming Performance and New Title Traction
Domestic and international game momentum: gross receipts for domestic games grew in the 'teens' YoY; Honor of Kings and Peacekeeper Elite hit lifetime/quarterly record highs (Peacekeeper Elite gross receipts +30%+ YoY; peak DAU 90 million). New title Roco Kingdom World achieved >13 million average DAUs in its first month and sustained high retention.
Tencent Cloud and Business Services Expansion
Business Services revenue grew 20% YoY; FinTech & Business Services segment revenue RMB 60 billion, up 9% YoY. Tencent Cloud international revenue grew >40% YoY; AI-related cloud demand increased across GPU, CPU and storage with emerging token monetization.
Marketing and Engagement Improvements
Marketing Services revenue RMB 38 billion, up 20% YoY. Video accounts total time spent increased >20% YoY; Weixin search query volume rose >25% YoY. Branded merchant GMV in Mini Shops more than tripled YoY.
Margin Resilience
Overall gross margin 57%, +1 percentage point YoY. VAS gross margin 63%, +3 ppt YoY. FinTech & Business Services gross margin 52%, +2 ppt YoY. Non-IFRS operating margin stable at 38.5%; excluding new AI products, non-IFRS operating margin 43% (+3.1 ppt YoY).
Hunyuan 3 Preview and AI Product Momentum
Launched Hunyuan 3 Preview: co-designed for cost-efficiency and multi-capability use cases; deployed across 131 internal products; ranked first by token usage on open router since April 28 (token usage reportedly >=10x vs Hunyuan 2). Early adoption of AI agents (WorkBuddy, CodeBuddy) with strong organic growth and retention; token usage on Tencent Cloud rising rapidly in recent weeks.
Operational Highlights and Strategic Actions
Investments in AI infrastructure ramping with operating CapEx RMB 31.2 billion (up 18% YoY, +84% QoQ). Management plans substantial further CapEx increases (especially H2) as China-designed ASIC supply ramps. Company continuing share buybacks (RMB 7.9 billion in quarter) while liquidating parts of investment portfolio to support capital returns.
HK:0700 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HK:0700 Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 13, 2026 | HK$451.93 | HK$457.27 | +1.18% |
Mar 18, 2026 | HK$543.66 | HK$544.16 | +0.09% |
Nov 13, 2025 | HK$649.43 | HK$648.45 | -0.15% |
Aug 13, 2025 | HK$553.06 | HK$579.25 | +4.74% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Tencent Holdings Limited (HK:0700) report earnings?
Tencent Holdings Limited (HK:0700) is schdueled to report earning on Aug 19, 2026, TBA (Confirmed).
What is Tencent Holdings Limited (HK:0700) earnings time?
Tencent Holdings Limited (HK:0700) earnings time is at Aug 19, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Tencent Holdings Limited stock?
The P/E ratio of Tencent Holdings is N/A.
What is HK:0700 EPS forecast?
HK:0700 EPS forecast for the fiscal quarter 2026 (Q2) is 8.55.
