US Stock Movement | Q2 Capital Expenditures Hit Record High and Free Cash Flow Turns Negative; Tencent Holdings ADR (TCEHY.US) Drops Nearly 4% at Market Open

Zhihu Finance APP reported that on Wednesday, Tencent Holdings ADR (TCEHY.US) fell nearly 4% at the opening, now trading at $57.33. In the news, Tencent Holdings saw robust revenue growth in the second quarter of 2026, but large-scale AI infrastructure investments are reshaping the company’s financial structure—net profit was below market expectations, capital expenditure hit a record high, and free cash flow turned negative. Tencent’s second quarter revenue grew by 11% year-on-year to 204.8 billion RMB, slightly exceeding Bloomberg’s consensus estimate of 202.8 billion RMB. Net profit was 56 billion RMB, compared to a market expectation of 58.4 billion RMB. Non-IFRS operating profit was 75.64 billion RMB, up 9% year-on-year; excluding the impact of new AI products, Non-IFRS operating profit rose 19% year-on-year to 86.1 billion RMB.