Tencent's second-quarter net profit rose just 0.7% year-on-year to 56 billion yuan ($8.3 billion), missing analyst forecasts and sending its Hong Kong-listed stock down more than 4% on Tuesday.
Revenue at the Chinese tech conglomerate climbed 11% to 204.8 billion yuan for the three months through June, edging past expectations, while first-half profit reached 114.1 billion yuan, up roughly 10%. The company has significantly increased purchases of computing equipment and last month launched the full version of its Hunyuan 3 large language model.
Tencent is reportedly in talks to become the largest shareholder in AI startup Manus, which said it would resume independent operations after Beijing blocked Meta's attempted acquisition. Separately, Tencent is reviewing stakes in several Japanese game studios where strategic synergies have faded, though holdings in PlatinumGames and KADOKAWA are not under review. Shares of subsidiary Tencent Music fell nearly 10% despite reporting higher second-quarter revenue and profit.