Tencent Holdings published its unaudited results for the second quarter of 2026 on August 12, reporting revenue of 204.8 billion yuan. Income from fintech services and corporate services reached 60.3 billion yuan, demonstrating a 9% increase compared to the same period last year.
During the earnings conference call, Chairman and CEO Pony Ma presented a three-tiered artificial intelligence development strategy: intelligence, applications, and infrastructure. The foundational element of the intelligence layer is the recently released and rapidly integrated Hunyuan Hy3 model into products such as Yuanbao. This model is now globally available via API, as well as in Tencent's international version of WorkBuddy.
The release of the Hy4 model is planned in the near future. The applications layer showed the most significant progress. Tencent's AI-powered office efficiency agent, WorkBuddy, demonstrated rapid user growth and stable audience retention across iOS, Windows, Android, and HarmonyOS platforms. The company positions it as a leading office work agent in China, citing engineering capabilities, model selection, and a skills library. The product portfolio has expanded from a strong standalone product to a matrix that includes Marvis and QClaw, while CodeBuddy has achieved significant user growth alongside WorkBuddy.
In terms of the infrastructure layer, Tencent substantially increased its procurement of computing power to monetize the use of models and applications. Chief Strategy Officer James Mitchell noted that due to growing demand and rising rental rates, Tencent could almost immediately cover depreciation costs by leasing computing power to third parties. However, the company chose a different path: directing most of the new capacity toward training advanced industry models and implementing proprietary AI applications. Management believes that superior intelligence will eventually transform into a superior economy, including token sales through WorkBuddy.
President Martin Lau elaborated on capital expenditures. Tencent views its business as consisting of two parts: existing business, which provides stable growth thanks to a strong operating leverage, and a new AI-based business, encompassing self-developed models, new applications, and associated computing resources. Capital expenditures on AI represent the initial investment for model training, future inference needs, and Tencent Cloud AI capacity. Lau stated that computing power ordered or prepaid months ago can now be resold with a margin exceeding 30% of the original purchase price, indicating a rapid shift in the economic paradigm of AI computing.
When asked whether WorkBuddy is enterprise software or a new platform, Lau clarified that it is a new platform. He described it as a flexible workspace for agentic AI, designed for all office productivity needs and single-employee companies, featuring a support level that utilizes various models and a growing library of third-party skills. The Hy model will be one of WorkBuddy's offerings, a primary one if it effectively solves problems, but not the only one. Management characterized this quarter as the beginning of the AI-transformed Tencent era, noting the growth in marketing services, the successful performance of several new games, and the rapid increase in video views on WeChat Channels.


