Tencent Music Entertainment Group stock stays below analyst target

Published on 10/07/2026 at 02:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tencent Music Entertainment Group stock posted Q2 revenue of RMB 8.93 billion on August 11, 2026, above the RMB 8.79 billion estimate. The NYSE close was USD 7.93 on October 6, 2026, while analysts set a USD 12.59 average target.

TME, US88034P1093, Illustration mit AI erstellt.

Tencent Music Entertainment Group (ISIN US88034P1093) closed at USD 7.93 on the NYSE on October 6, 2026, while the average 12-month analyst target stood at USD 12.59. The target is 58.8 percent above the closing price, leaving valuation expectations far ahead of the latest market level.

Revenue clears forecast, EPS misses

The company's second-quarter 2026 revenue reached RMB 8.93 billion, compared with a consensus forecast of RMB 8.79 billion, according to Investing.com on August 11, 2026. That 1.6 percent revenue beat contrasts with earnings per share of RMB 1.57 against a RMB 1.62 forecast, a 3.1 percent miss.

The same Q2 summary reported membership revenue growth of 8 percent to RMB 4.8 billion and gross margin of 44.2 percent, down from 44.4 percent. For investors, the mix matters: subscription growth remained positive, but the margin comparison points to less operating leverage than the revenue line alone suggests.

Analysts see a wide valuation gap

Investing.com lists a Buy consensus from 29 analysts, including 17 Buy ratings, 12 Holds and 0 Sells. The average 12-month target is USD 12.59, with a high estimate of USD 24.034628 and a low estimate of USD 9.0565892.

The target spread makes the market debate concrete. Even the low estimate is USD 9.0565892, 14.2 percent above the October 6 close, while the high estimate is more than three times the market price. The figures describe analyst expectations, not a guaranteed outcome, and the Q2 EPS miss remains a counterweight to the bullish consensus.

Debt deal supports capital flexibility

Tencent Music also completed a USD 1.0 billion senior unsecured notes offering on September 10, 2026, according to the company's investor-relations release. The two tranches total USD 500 million due in 2031 at 5.050 percent and USD 500 million due in 2036 at 5.650 percent, with proceeds intended for refinancing and share repurchases.

The next earnings date listed by Investing.com is November 17, 2026. That report should show whether membership growth can offset the margin pressure reflected in the second-quarter figures.

Stock remains far below yearly high

Tencent Music's NYSE close of USD 7.93 on October 6, 2026, sits within a 52-week range of USD 7.66 to USD 23.86. The company's market capitalization was USD 12.2 billion at the same market-data timestamp.