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Tencent Holdings: Free Cash Flow of RMB 37.6 Billion in Q2 2026 Excluding Prepayments for Computing Power

Tencent Holdings (00700.HK) announced that in the second quarter of 2026, the group recorded a negative free cash flow of RMB 13.8 billion. This was due to a net cash inflow from operating activities of RMB 52.7 billion being more than offset by capital expenditures of RMB 59.3 billion, media content payments of RMB 5 billion, and lease liability payments of RMB 2.2 billion. Our operating cash flow includes significant prepayments related to AI, aimed at providing infrastructure to support the demands of Hy model upgrades, WorkBuddy and CodeBuddy inference, WeChat AI initiatives, and the AI capability development of our various products and services, while also meeting the growing demand from external customers for our cloud services. Excluding the prepayments for computing power, our free cash flow would be RMB 37.6 billion.

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