Tencent Q1 2026: Revenue Up 9% as AI Investment Surges

Tencent reported its Q1 2026 results, with total revenues reaching 196.46 billion yuan, a 9% increase from the previous year. Operating profits, excluding IFRS impacts, stood at 75.63 billion yuan, also up by 9%. However, significant investments in artificial intelligence negatively affected profitability, as operating profits could have risen by 17% without the impact of new products. Research and development investments totaled 22.54 billion yuan in Q1, marking a 19% rise year-on-year, while capital expenditures reached 31.94 billion yuan, up 16% from the prior year.