Wednesday, 12 August, 2026
AI Wins the Ad War, But Tencent’s Bottom Line Takes the Hit
By TechShots Studio
Tencent reported an 11% rise in Q2 revenue to 204.8 billion yuan ($30.4 billion), driven by a 22% surge in AI-enhanced advertising sales and solid gaming income. However, net profit rose just 0.7% to 56 billion yuan, missing analyst estimates as aggressive capital expenditure on artificial intelligence tools and infrastructure compressed operating margins.