Tencent reported second-quarter revenue of 204.8 billion yuan, driven by accelerated growth in its cloud operations and a substantial increase in research spending.

Fintech and business services revenue rose 9 percent year over year to 603 billion yuan during the quarter. Research and development expenditures jumped 35 percent to 273 billion yuan, while capital expenditures surged 176 percent to 528 billion yuan as the company ramped up spending on computing power.

The company highlighted progress across its artificial intelligence initiatives, starting with its Hunyuan Hy3 model. Following its deployment, Hy3 was integrated into products such as WorkBuddy and Yuanbao, driving rapid usage growth. Tencent has made the model available globally through developer APIs and international product versions, and it plans to release its upgraded Hy4 model shortly to enhance multimodal capabilities.

WorkBuddy, the firm's AI native workplace agent, expanded its user base across iOS, Windows, Android, and HarmonyOS operating systems. Tencent continues to build out a portfolio of dedicated AI tools, including CodeBuddy, Marvis, and QClaw. To support large-scale agent deployment, Tencent Cloud upgraded its core infrastructure, which helped maintain momentum in its international cloud operations across complex migration and audio-video scenarios.

Tencent Chairman and Chief Executive Officer Pony Ma stated that the company is building an AI-powered ecosystem across intelligence, application, and infrastructure layers. Ma noted that Hy3 offers a cost-effective solution while establishing a foundation for future models, adding that productivity applications like WorkBuddy and CodeBuddy achieved breakthrough growth. He added that increased computing investments will help convert model usage into direct revenue.

As of late June, Tencent held over 98,000 global patent applications and more than 55,000 granted patents.