Tencent Holdings said on Wednesday that its capital expenditures nearly tripled in the 2nd quarter to boost its bet on artificial intelligence, while revenue for the period beat analysts' estimates. The Shenzhen-based company, which owns WeChat, is the world's largest video game operator by revenue.
Quarterly results
Revenue from April to June reached 204.8 billion yuan (US$ 30.4 billion), up 11% from 184.5 billion in the same period of 2025. The result came in above the average estimate of 202.8 billion yuan compiled by Bloomberg. Adjusted net income totaled 68.4 billion yuan, versus 63.1 billion a year earlier, in line with the projection of 68.2 billion.
AI investments
Capex jumped 176% year over year to 52.8 billion yuan in the quarter. In a statement, Tencent co-founder and CEO Pony Ma Huateng said the company "substantially strengthened" the acquisition of computing capacity, which should convert its AI models and applications into revenue. He also said the company is advancing in building a "new AI-enabled Tencent" in intelligence, applications and infrastructure.
Before the release, Tencent shares closed down 1.95% in Hong Kong at HK$ 461.6.
