According to a research report published by CMB International, Tencent will announce its results for the second quarter of 2026 on August 12. Total revenue is expected to increase 9% year over year to 2013 billion yuan, mainly driven by steady growth in gaming and advertising business; non-IFRS net profit will increase 7% year over year to 67.3 billion yuan, while non-IFRS net profit margin will drop 0.7 percentage points year on year, mainly dragged down by AI-related investments. The bank predicts that game revenue will increase 9% year over year to 64.8 billion yuan, with domestic and international game revenue increasing by 11% and 6% respectively; advertising and marketing revenue increasing 18% year over year to 42.2 billion yuan, mainly due to increased advertising inventory on WeChat video accounts and AI empowerment; and fintech and corporate services revenue increasing 9% year over year to 60.7 billion yuan. In view of investment in the AI sector, the bank slightly lowered Tencent's 2026 non-IFRS net profit forecast by 1% and lowered its target price from HK$750 to HK$735, maintaining a “buy” rating. The bank added that it is still optimistic about the return on investment invested by Tencent AI. Looking ahead to the second half of 2026, the launch of WeChat's AI smart device, the upgrade of the mixed-element model, and cloud business growth driven by increased computing power will all be catalysts for fundamental and valuation restoration.

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