Hong Kong · Delayed Price · Currency is HKD Tencent Holdings Earnings Call Transcripts
Fiscal Year 2026
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Revenue and profit grew strongly year-on-year, driven by robust AI investments, new game launches, and expanding cloud and fintech services. Major CapEx was allocated to AI infrastructure, with WorkBuddy and CodeBuddy leading in productivity AI. AI monetization and disciplined capital allocation are expected to drive future growth.
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Q1 2026 saw 9% revenue growth and 11% net profit growth, driven by strong AI progress and robust performance in games, cloud, and advertising. AI investments and CapEx are set to rise, with continued share buybacks supported by strong cash flow.
Fiscal Year 2025
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Q4 2025 saw 13% revenue and 19% gross profit growth, driven by evergreen games, AI integration, and international expansion. AI investments will more than double in 2026, funded by core business earnings, while dividends rise 18%.
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Q3 2025 saw 15% revenue and 18% non-IFRS net profit growth, driven by strong gaming, fintech, and AI-powered marketing. International games and AI initiatives led segment gains, while CapEx guidance was revised lower due to chip supply, not strategy.
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Q2 2025 saw 15% revenue growth and 22% gross profit growth, driven by strong games, marketing, and AI integration. Key games and cloud services excelled, while AI investments boosted efficiency and user engagement. CapEx surged to support AI, and margins improved across all segments.
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Revenue rose 13% year-on-year to RMB 180 billion, with strong growth in games, marketing, and fintech. AI investments drove higher capex and operating expenses, but operating leverage and share buybacks supported profit and EPS growth. Gross margin improved to 56%.
Fiscal Year 2024
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Q4 2024 saw double-digit revenue and profit growth, driven by AI innovation, high-margin businesses, and strong shareholder returns. CapEx surged for AI infrastructure, with continued focus on high-quality growth and margin expansion.
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Q3 2024 saw 8% revenue growth and 16% gross profit growth, driven by strong games, e-commerce, and AI initiatives. Operating profit and net profit rose sharply, with robust cash flow supporting share buybacks and investment in cloud and AI.
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Q2 2024 saw 8% revenue growth and 21% gross profit growth year-on-year, driven by strong domestic and international games, resilient advertising, and expanding fintech. Gross margin rose to 53%, and free cash flow increased 35%.