Tencent’s Q[Quarter] Revenue Jumps 15%, Propelled by AI

Tencent reported a 15% year-over-year revenue increase on Thursday, with artificial intelligence playing a significant role in boosting performance across key sectors like targeted advertising and gaming.

The third-quarter 2025 earnings reveal a company strategically leveraging advancements in AI to enhance both top-line growth and operational efficiency. Here’s a closer look at the key figures:

• Revenue: 192.9 billion Chinese yuan ($27.12 billion), exceeding analysts’ expectations of 189.2 billion Chinese yuan, according to LSEG data.
• Operating profit: 63.6 billion yuan, surpassing the street’s projection of 58.01 billion yuan.

Gaming, advertising, and social media services, the bedrock of Tencent’s business, collectively generated 95.9 billion Chinese yuan in revenue, marking a 16% year-over-year increase. The growth underscores Tencent’s continued dominance in the digital entertainment and communication landscape.

Within the domestic gaming market, revenues climbed by 15% compared to the same period last year. This surge was primarily driven by the successful launches of “Delta Force” and “VALORANT MOBILE.” The latter, in particular, has been lauded by Tencent as “China’s most successful mobile game launch year-to-date,” demonstrating the company’s prowess in identifying and capitalizing on emerging gaming trends.

Tencent’s international gaming efforts, a segment experiencing rapid expansion, witnessed a remarkable 43% year-on-year growth, reaching 20.8 billion Chinese yuan. The company attributed this impressive performance to the continued success of titles like “Clash Royale” and “Dying Light: The Beast,” coupled with increased revenues from Supercell’s portfolio and strategic acquisitions. This international focus underscores Tencent’s ambition to become a global gaming powerhouse.

Earlier this year, Tencent ramped up its capital expenditure, signaling a commitment to bolstering its AI capabilities and eyeing expansion into the European cloud computing market. This strategic move positions Tencent to compete directly with established players such as Amazon Web Services, Google Cloud, and Microsoft Azure. The company’s advancements in AI are not only driving revenue in existing sectors but also paving the way for future growth opportunities in the burgeoning cloud computing space. This expansion could provide alternative revenue streams and challenge the dominance of American technology firms.

The company has been actively refining its foundational AI model, HunYuan, focusing on enhancing its capabilities in coding, mathematics, and scientific applications. Furthermore, Tencent is integrating DeepSeek into various products, demonstrating a commitment to leveraging AI across its diverse portfolio. The investment in these advanced technologies suggests Tencent’s belief that AI will be an integral component in future growth.

Tencent’s stock has surged by 56.7% year-to-date, reflecting investor confidence in the company’s strategic direction and its ability to capitalize on emerging opportunities in the digital economy.