Tencent Q2 revenue tops forecasts as games and AI ads accelerate
What's new: Profit missed estimates and capital spending jumped 65% as Tencent bought more AI computing infrastructure.
Tencent beat second-quarter revenue estimates as faster growth in China gaming and AI-powered advertising lifted sales, even as profit fell short of analyst forecasts. The company posted revenue of 204.78 billion yuan, above the 202.17 billion yuan expected by LSEG, while net profit came in at 56 billion yuan, below the 61.82 billion yuan forecast. Domestic games revenue rose 17% to 47.3 billion yuan, helped by titles including Delta Force and Valorant PC and Mobile. Tencent also said June-quarter capital expenditure climbed 65% from the prior quarter to 52.8 billion yuan as it expanded computing capacity for AI products, including its Xiaowei assistant test inside WeChat.