Abstract:
Due to increased investment in the field of artificial intelligence, ByteDance’s net profit in the first half of 2026 will decline year-on-year. At the same time, driven by TikTok and other overseas businesses, ByteDance’s revenue in the first half of the year increased by 30% year-on-year, and the proportion of overseas revenue reached a new high. ByteDance did not comment on the above data.
While net profits have declined, ByteDance’s net profit margins have also continued to decline. Foreign media have previously reported that ByteDance’s net profit margin will be 26% in 2023 and 21% in 2024. Judging from the latest data, ByteDance's net profit margin in the first half of 2026 has further dropped to around 16.7%.
According to reports, ByteDance’s overall profit has declined, highlighting that investment in the AI field is putting this large technology company under pressure. ByteDance independently develops large language models and video models, and also operates Doubao, the most popular mobile chatbot application in China. The company is currently expanding its AI cloud business and exporting self-developed models to enterprise customers. Its Seedance video generation model ranks first in the global AI video market.
Foreign media reports also mentioned that although Douyin still contributes most of Bytedance’s revenue, overseas revenue mainly from TikTok accounts for more than 30% of total revenue.
Previously, the media reported that ByteDance’s overseas revenue will grow by nearly 50% in 2025, far exceeding the domestic revenue growth of approximately 20%. The proportion of overseas business revenue has also increased from 25% in 2024 to more than 30%, setting a record high. The latest reports from foreign media show that entering 2026, this trend will still maintain, pushing the proportion of overseas revenue in the first half of the year to a new high.
According to reports, ByteDance recently obtained a loan of approximately US$30 billion from banks, the largest loan in the company’s history, to provide financial support for its soaring AI investments. ByteDance’s biggest domestic competitors are also raising funds to provide financial support for their own artificial intelligence layout. Alibaba is seeking to raise about $10 billion through a large-scale share placement to spend on artificial intelligence infrastructure. Zhipu AI recently launched the issuance of equity and convertible bonds totaling US$5 billion to support its artificial intelligence-related investments.
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