Tencent Music Entertainment Group reported second-quarter 2026 revenue of RMB8.93 billion (US$1.32 billion), up 5.8% year over year but below a US$1.35 billion analyst estimate, while adjusted diluted earnings of RMB1.70 per ADS, or US$0.25, beat expectations of US$0.23. Gross margin narrowed to 44.2% from 44.4%, highlighting cost pressure even as non-IFRS net profit attributable to equity holders rose 4.4% to RMB2.69 billion (US$396 million) and net income attributable to equity holders reached RMB2.47 billion. The quarter reflected Ximalaya's expanding role in Tencent Music's push beyond music streaming into audiobooks, podcasts and online novels, alongside growth initiatives spanning SVIP memberships, live concerts, merchandise and AI-enabled distribution across Weixin and connected devices. Tencent Music completed a US$400 million buyback announced in March 2025, repurchasing 43.5 million ADSs and reducing share count by 2.82%, while signaling another round of repurchases. The results left investors focused on whether a broader digital audio and IP-driven ecosystem can offset softer margins and greater exposure to lower-margin offline events; the shares were described as falling 9.4% after the release and were down 10.71% to US$8.83 at the time of publication.