Tencent Q3 2025 Results Show AI Led Growth

Tencent’s third-quarter 2025 results, released Nov. 13, show revenue rose 15% year-on-year as stronger gaming demand and AI-powered advertising boosted profit and margins. Management said it will further invest in the HunYuan foundation model to expand monetization and efficiency.

Double-Digit Revenue and Profit Growth

Tencent reported third-quarter revenue of RMB192.9 billion, up 15% year-on-year. Net profit attributable to equity holders rose 18% on a non-IFRS basis to RMB70.6 billion and 19% on an IFRS basis to RMB63.1 billion. Gross profit increased 22% to RMB108.8 billion, while operating profit rose 18% non-IFRS to RMB72.6 billion and 19% IFRS to RMB63.6 billion. Operating margins improved to 38% on a non-IFRS basis from 37%, and to 33% IFRS from 32%. The company said these results exceeded analyst expectations.

AI Integration and Segment Performance

Marketing-services revenue grew 21% year-on-year to RMB36.2 billion, driven by higher ad impressions and rising effective cost per mille (eCPM) as machine-learning targeting improved advertiser returns. Tencent attributed this growth to embedding AI into content and ad delivery, which increased user engagement across its platforms.

Gaming remained a key growth driver. Domestic games revenue rose 15% to RMB42.8 billion, supported by recent releases such as Delta Force and steady demand for evergreen titles including Honour of Kings and Peacekeeper Elite. International games revenue surged 43% to RMB20.8 billion, boosted by the expansion of VALORANT from PC to mobile.

FinTech and business-services revenue increased 10% to RMB58.2 billion, with cloud and AI-related services contributing to growth. Management said commercial payment volumes and cloud services are expected to benefit from rising enterprise demand for AI capabilities.

Tencent upgraded its HunYuan foundation model and is integrating agentic AI features into Weixin (WeChat), linking these investments to product innovation and operational efficiencies. Chairman and CEO Ma Huateng said, “Our strategic investments in AI are benefitting us in business areas such as ad targeting and game engagement, as well as in efficiency enhancement areas such as coding, and game and video production.” The company also highlighted continued user growth in the WeChat ecosystem and new monetization channels.

Capital allocation reflected tighter spending and shareholder returns. Capital expenditure declined 24% year-on-year to RMB13.0 billion, while free cash flow remained steady at RMB58.5 billion. Tencent repurchased 35.4 million shares for HKD21.1 billion during the quarter.