TLDR
- Tencent’s Q3 2025 revenue hit 192.9 billion yuan, topping analyst expectations of 188.9 billion yuan.
- Domestic gaming revenue grew 15% to 42.8 billion yuan while overseas gaming jumped 43% to 20.8 billion yuan.
- Net profit climbed to 63.1 billion yuan, beating the 57.3 billion yuan analyst consensus.
- AI-driven advertising revenue increased 21% to 36.2 billion yuan through enhanced targeting technology.
- The company’s research and development efficiency improved 20% through AI automation tools.
Tencent reported quarterly revenue of 192.9 billion yuan on Thursday. The figure surpassed analyst predictions by 4 billion yuan.
Net profit for the September quarter reached 63.1 billion yuan. Analysts expected 57.3 billion yuan.
Gaming revenue showed strength across both markets. The domestic market generated 42.8 billion yuan, up 15%. Overseas markets produced 20.8 billion yuan, jumping 43%.
Established titles drove domestic performance. “Honor of Kings” and “Peacekeeper Elite” continued their strong runs. New release “Delta Force” contributed additional revenue.
International growth came from Supercell’s game portfolio. Fresh releases in foreign markets added to the gains.
The advertising business posted 36.2 billion yuan in revenue, a 21% increase. AI-powered targeting capabilities improved advertiser outcomes.
Founder and CEO Pony Ma credited AI investments for the results. “Our strategic investments in AI are benefiting us in business areas such as ad targeting and game engagement,” Ma said in Thursday’s earnings statement.
AI Development Shows Progress
Tencent’s AI initiatives are delivering measurable improvements. The company reported a 20% boost in research and development productivity from AI automation.
Ninety percent of company engineers now use CodeBuddy IDE. The programming tool operates on Tencent’s Hunyuan foundational model.
The company unveiled Hunyuan Image 3.0 in September. The text-to-image tool ranked above Google DeepMind’s Nano Banana on a major leaderboard.
Yuanbao, Tencent’s AI chatbot, attracted 32 million monthly active users by September. The app ranks third in China behind ByteDance’s Doubao and DeepSeek.
WeChat integrated AI technology from DeepSeek during 2025. The platform reached 1.41 billion combined monthly active users for Weixin and WeChat.
Segment Results and Investment
Value-added services revenue totaled 95.9 billion yuan, increasing 16%. This division includes gaming and social media operations.
Fintech and business services grew 10% to 58.2 billion yuan. Enterprise clients drove demand for AI-related services. WeChat’s Mini Shop e-commerce business contributed through higher service fees.
The company spent 13 billion yuan on capital expenditures in Q3. That compares to 19.1 billion yuan in the prior quarter.
Management expects AI-focused capital spending to reach the low teens as a percentage of revenue for 2025. The company maintains stockpiles of AI chips to counter U.S. trade restrictions. Domestic chip alternatives exist if needed.
Tencent open-sourced more than 30 AI models in 2025. These include several leading 3D generation models.
Trading Activity
The Hong Kong-listed shares closed at HK$656 on Thursday, down 0.15%. Trading occurred before the earnings announcement.
Marketing services revenue reached 36.2 billion yuan for the quarter. The 21% growth rate reflects improved AI targeting that helps advertisers connect with their intended audiences more precisely.
Tencent has released industry-leading models and services that convert text and images into 3D visuals as part of its expanding AI capabilities.
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