Tencent Music Entertainment Group (NYSE:TME) shares rose Tuesday after the company reported fiscal first-quarter 2026 results that topped Wall Street revenue and earnings estimates.

Revenue rose 7.3% year over year to $1.145 billion, ahead of analyst estimates of $1.140 billion, driven by continued growth in online music services.

Adjusted earnings were 21 cents per share, or 1.46 Chinese yuan, exceeding analyst expectations of 20 cents per share.

Margins And Profit Improve

Gross margin expanded to 44.9% from 44.1% a year earlier, supported by higher membership services revenue and lower channel fees.

Adjusted net profit increased 7% year over year to $330 million.

As of March 31, 2026, the company held $5.94 billion in cash, cash equivalents, term deposits and short-term investments.

Executives said the company continued expanding its music ecosystem through deeper intellectual property monetization, AI-powered tools, strategic partnerships and fan-focused membership offerings, even as competition in China's streaming market intensified.

Tencent Music Expands IP Partnerships

Executive Chairman Cussion Pang said Tencent Music continued diversifying monetization across the music value chain, with its ...