Chinese tech giant Tencent’s quarterly revenue rises 15%, fueled by AI
Tencent on Thursday reported a 15% year-on-year revenue increase as artificial intelligence boosted the Chinese tech giant’s performance in ad targeting and gaming.
According to the earnings announced on Thursday, Tencent’s performance in the third quarter of 2025 is as follows:
- Revenue: 192.9 billion Chinese yuan ($27.12 billion), beating analysts’ expectations of 189.2 billion Chinese yuan, according to data compiled by LSEG.
- Operating profit: 63.6 billion yuan versus 58.01 billion yuan expected on the street.
Gaming, marketing and social media services, which constitute Tencent’s core business, generated 95.9 billion Chinese yuan, representing 16% annual growth.
Tencent said domestic arcades grew 15% in the same period, driven by the recent launches of “Delta Force” and “VALORANT MOBILE,” the latter of which has become “China’s most successful mobile game launch to date.”
International gaming efforts, the fastest-growing segment recently, reached 20.8 billion Chinese yuan, up 43% year on year. The company attributed this growth to higher revenues from Supercell’s games and an acquisition, as well as “Clash Royale” and “Dying Light: The Beast.”
Tencent increased capital spending earlier this year by leveraging artificial intelligence and targeting expansion in Europe for cloud computing services that could compete with market leaders Amazon Web Services, Google Cloud and Microsoft Azure.
The company has updated its core AI model, HunYuan, improving its coding, math and science capabilities. The technology company also uses DeepSeek in some of its products.
Tencent shares have increased by 56.7% since the beginning of the year.
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