Chinese tech giant Tencent posts revenue beat on accelerating games sales, AI-driven ads

Chinese tech company Tencent is a gaming giant and the parent company of WeChat, the ubiquitous social messaging app in China.Cheng Xin | Getty Images News | Getty ImagesTencent posted a beat on second-quarter revenue thanks to an acceleration at its China gaming unit and AI-driven advertising, but its core profit missed analyst expectations.The Chinese tech giant also reported a rise in capital expenditure in the quarter. Here's how Tencent did in the second quarter versus LSEG estimates:Revenue: 204.78 billion Chinese yuan ($30.36 billion) versus 202.17 billion yuan expectedNet profit: 56 billion Chinese yuan versus 61.82 billion yuan expectedRevenue rose 11% year-on-year while profit was up nearly 1%. Tencent said that, stripping out one-time factors and certain non-cash items, its profit was 68.4 billion yuan in the quarter, up 9% versus the same time last year.Tencent said its domestic games revenue came in at 47.3 billion yuan, up 17% year-on-year, driven by key titles such as Delta Force and Valorant PC and Mobile. That was faster than the 6% growth the division saw in the first quarter of this year, and the same level seen in the second quarter of 2025.Tencent stock was dow...