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Morningstar: TENCENT Results In Line; AI Investment Begins to Deliver Returns, Spending In Line with Guidance
TENCENT (00700.HK) reported 1Q26 non-IFRS net profit of RMB67.905 billion, up 11% YoY, in line. Morningstar said TENCENT delivered results broadly meeting consensus in 1Q26. A key ...
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Morningstar: TENCENT Results In Line; AI Investment Begins to Deliver Returns, Spending In Line with Guidance
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TENCENT (00700.HK)  +1.500 (+0.330%)    Short selling $1.56B; Ratio 12.851%   reported 1Q26 non-IFRS net profit of RMB67.905 billion, up 11% YoY, in line. Morningstar said TENCENT delivered results broadly meeting consensus in 1Q26. A key highlight was that the company's AI investments have begun to generate tangible returns, reflected in its upgraded AI-driven advertising recommendation model, which accelerated advertising revenue growth to 20%. AI-related spending was also in line with management's prior full-year guidance.

The broker noted that the share price of TENCENT's major shareholder Prosus were broadly flat following its earnings release, as the market digested the in-line results and shifted focus to the upcoming earnings conference call, particularly any incremental updates related to AI.

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The only negative in TENCENT's results was the slowdown in gaming revenue growth. However, this appeared to be due to the shift in the Lunar New Year timing affecting revenue recognition, rather than any fundamental demand issue.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 16:25.)

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