Tencent Q2 capex 52.8B yuan +176% YoY, HunYuan 4 in training for late 2026 release
Tencent released Q2 earnings on August 12 with capex of 52.78B yuan, +176% YoY. New AI products produced a ~10.5B yuan operating loss. A larger-parameter HunYuan 4 is in training and expected later in 2026.
Tencent Holdings released its Q2 2026 earnings on August 12: revenue 204.785 billion yuan, +11% YoY; Non-IFRS operating profit 75.636 billion yuan, +9% YoY. The core variable this quarter was AI-driven capex of 52.784 billion yuan (+176% YoY, +65% QoQ), producing -13.8 billion yuan free cash flow; excluding compute pre-payments, free cash flow was positive 37.6 billion yuan.
Excluding the impact of new AI products (HunYuan, Yuanbao, WorkBuddy, CodeBuddy, Xiaowei), Non-IFRS operating profit grew 19% YoY to 86.1 billion yuan. New AI products produced approximately 10.5 billion yuan operating loss this quarter (QoQ expansion ~20%). R&D spend was 27.28 billion yuan, +35% YoY.
On the earnings call, President Liu Chiping disclosed that Tencent is training a larger-parameter HunYuan 4 model, expected to release in late 2026. Tencent focuses on real-world value of models rather than just benchmark rankings. HunYuan 3 quickly iterated from preview to GA, with daily token usage 7x the preview version.