Tencent Holdings Ltd. reported robust financial results for the third quarter of 2025, delivering solid revenue and earnings growth that exceeded analyst expectations. The technology giant reported total revenue of RMB 192.9 billion ($27.12 billion), marking a 15% increase year-on-year (YoY) and surpassing consensus estimates.
Profitability metrics were exceptionally strong. Non-IFRS net income grew 19% YoY to RMB 72.8 billion, significantly outpacing the expected RMB 66 billion. The company’s operating profit reached RMB 63.6 billion, also beating street estimates. Furthermore, the operating margin improved to 38% from 37% a year prior, demonstrating continued operating leverage. Adjusted earnings per share for the quarter were RMB 7.575.
Tencent’s core business segments fueled this success. Value-Added Services (VAS) revenue, which includes gaming and social media services, grew 16% YoY to RMB 95.9 billion.
The gaming division saw impressive gains, particularly in international markets, which has been Tencent’s fastest-growing segment. International games revenue surged 43% YoY to RMB 20.8 billion, exceeding analyst expectations. Meanwhile, domestic games revenue also rose 15% to RMB 42.8 billion.
Marketing Services revenue increased 21% YoY to RMB 36.2 billion. This segment benefited from higher ad impressions and improved pricing (eCPMs) due to enhanced AI-powered ad targeting.
Tencent’s strategic focus on artificial intelligence (AI) is showing positive returns across multiple business segments. CEO Ma Huateng confirmed that AI investments are benefitting areas such as ad targeting, efficiency enhancement, coding, and game and video production. The company updated its foundational AI model, HunYuan, improving its capabilities in coding, math, and science.
Fintech and Business Services revenue grew 10% YoY to RMB 58.2 billion, in line with consensus estimates, supported by higher commercial payments and consumer loans.
In terms of capital allocation, capital expenditure slowed in the quarter, decreasing 24% YoY to RMB 13 billion. Additionally, Tencent actively managed its shares, repurchasing approximately 35.4 million shares on the Hong Kong Stock Exchange for an aggregate consideration of approximately HKD 21.1 billion.
