The Bad PlaceUS Top News and Analysis | China's Tencent sees boost from gaming, AI demand even as revenue comes in weaker than expected
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Tencent reported a 9% rise in first‑quarter 2026 revenue to 196.5 billion yuan ($28.9 billion), falling short of analysts’ 199 billion‑yuan estimate. Domestic game revenue grew 6% to 45.4 billion yuan, slowing from the 24% jump a year earlier, largely due to the timing shift of Chinese New Year rather than demand weakness. The company highlighted “significant initial progress” on new AI products and the use of AI to boost its core businesses, with its fintech and business‑services segment generating 60 billion yuan, up from 55 billion the prior year, and cloud services rising 20% on strong AI‑related demand. An upgraded AI‑driven ad recommendation model lifted advertising revenue growth to 20%, showing that Tencent’s AI investments are already delivering returns.
Read more: https://www.cnbc.com/2026/05/13/tencent-q1-earnings-gaming-ai-demand-revenue-miss.html