PerpEquities

Tencent Music Entertainment Group (TME) financials

NYSE · Communication Services · Internet Content & Information · 5,690 employees · CEO Zhu Liang

Price
$9.03
Market cap
$13.4B
Enterprise value
CN¥80.1B Data as of 2026-11-14
Last report
Q2 '26 filed 2026-09-01
Next report
2026-11-17
Revenue (TTM)CN¥33B+9.0% vs a year agoLast 4 quarters; bars = each quarter
Operating margin (TTM)32.4%-8.5 pp vs a year agoOperating income CN¥10.7B
Net income (TTM)CN¥8.6B-16.0% vs a year agoAfter tax, incl. non-operating gains
Free cash flow (TTM)CN¥8.88B+4.7% vs a year agoCapex CN¥2.34B
Diluted EPS (TTM)CN¥5.50-16.7% vs a year agoSum of the last 4 quarters
Net cashCN¥13.8B-14.8% vs a year agoCash + short-term investments - debt

Valuation & key figures

Market cap
$13.4B
Updated 52m ago
Revenue
CN¥33B
Trailing 12 months
Revenue growth
+8%
FY2026 consensus
Profit margin
26.1%
Net income / revenue, TTM
P/E
10.4×
P/S
2.7×
Price / sales, TTM
EV / EBITDA
6.5×
TTM
Free cash flow
CN¥8.88B
Trailing 12 months
Net income
CN¥8.6B
Trailing 12 months
Revenue estimate
CN¥35.5B
FY2026 consensus
Earnings
2026-11-17
Revenue est. $1.36B · Updated 52m ago
Dividend
$0.24
Per payment · 2026-04-02

Key takeaways

Computed from the reported numbers - every statement carries the figure it rests on.

  • Revenue growth slowing: 5.8% year on yearQ2 '26 revenue CN¥8.93B, against an average of 12.3% over the four quarters before.
  • Operating margin 32.4% (TTM), -8.5 pp on a year agoOperating income grew -13.6% while revenue grew 9.0%.
  • Capex 7.1% of revenue (a year ago 1.1%)CN¥2.34B invested in the last 4 quarters (+633.2% on a year earlier). Free cash flow CN¥8.88B = 103.2% of net income.
  • Returned CN¥652M to shareholders = 7.3% of free cash flowBuybacks CN¥652M (a year earlier CN¥2.14B), dividends CN¥0, stock-based pay CN¥374M (TTM).
  • Diluted share count up 0.3% in a year1.56B diluted shares in Q2 '26, 1.55B a year earlier.
  • Net cash CN¥13.8BCash + short-term investments CN¥30.7B, debt incl. leases CN¥16.9B; a year ago net cash CN¥16.2B.

Last quarter: Q2 '26

Quarter ended 2026-06-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.

Quarter vs a year ago

Q2 '26Year agoChange
RevenueCN¥8.93BCN¥8.44B+5.8%
Gross margin44.2%44.4%-0.2 pp
Operating incomeCN¥3.04BCN¥2.98B+1.9%
Operating margin34.0%35.3%-1.3 pp
Net incomeCN¥2.47BCN¥2.41B+2.6%
Diluted EPSCN¥1.58CN¥1.56+1.3%
Operating cash flowCN¥2.86BCN¥1.64B+74.8%
CapexCN¥0CN¥0–
Free cash flowCN¥2.86BCN¥1.64B+74.8%
R&DCN¥0CN¥0–
Stock-based compensationCN¥0CN¥147M-100.0%

Revenue

Where the money comes from - by business line and by region, quarter by quarter.

Revenue, operating income and growth

quarterly

Margins & cost structure

How much of each unit of revenue is left at each level - and where the costs go.

Margins

quarterly

Costs as % of revenue

quarterly

Cash flow & capital allocation

Cash generated, what it is spent on, and what reaches shareholders.

Operating cash flow, capex, free cash flow

quarterly

Uses of cash vs operating cash flow

fiscal years

Last 4 quarters

cash flow statement
Operating cash flow
CN¥11.2B
Capex
-CN¥2.34B
Buybacks
-CN¥652M
Dividends
CN¥0
Acquisitions
CN¥971K
Net debt issued
CN¥0
Stock-based compensation
CN¥374M
Free cash flow
CN¥8.88B
Returned to shareholders / FCF
7.3%

Share count and EPS

quarterly, diluted

Balance sheet

Liquidity, investments and debt at each quarter end.

Cash, investments and debt

quarter ends

Valuation & returns

Today's multiples against the company's own last five fiscal years; analyst targets and ratings.

Multiples and returns

TTM vs 5 fiscal years
Now5y averageWhere today sits in the 5-year range
P/E (TTM)10.4×21.2×17.5× – 24.8×
EV / EBITDA6.5×14.2×12.4× – 15.6×
EV / Sales2.4×3.7×2.3× – 5.6×
Price / FCF9.8×18.6×14.0× – 29.1×
Price / Book1.2×1.9×1.4× – 2.3×
FCF yield10.2%5.8%3.4% – 7.1%
Return on invested capital9.2%8.0%5.9% – 9.5%
Return on equity11.2%9.2%6.0% – 13.8%

Analysts

Consensus target $12.50 (+38.1%)
range $10.00 – $15.00 · rating Hold

Strong buy0
Buy10
Hold13
Sell1
Strong sell0

Outlook

Analyst consensus for the coming fiscal years and what it implies at today's price.

Consensus estimates

Fiscal yearRevenueGrowthEPSGrowthP/E at today's priceAnalysts (EPS)
FY2026CN¥35.5B+7.8%CN¥5.87-15.1%–14
FY2027CN¥38.3B+8.0%CN¥6.33+7.7%–14
FY2028CN¥40.9B+6.7%CN¥6.98+10.4%–13
FY2029CN¥40.6B-0.8%CN¥7.48+7.1%–10

Financial statements

Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.

Income statementRevenue, costs, operating income, net income and EPSOpenBalance sheetCash, investments, assets, debt, liabilities and equityOpenCash flowOperating cash flow, capex, free cash flow, buybacks and dividendsOpen

Sources

Statements, segment revenue, metrics and estimates are standardised from the company's filings.

Data as of 2026-11-14 · Amounts in CNY as reported; price and market cap in USD.