Tencent Reports 15% Revenue Growth, Driven by AI and Gaming
Chinese tech giant Tencent reported a 15% year-over-year revenue increase today, fueled by advancements in artificial intelligence and strong performance in its gaming division.
The company’s third-quarter revenue reached 192.9 billion Chinese yuan ($27.12 billion), exceeding analyst expectations of 189.2 billion yuan, according to data compiled by LSEG. Operating profit also surpassed estimates, landing at 63.6 billion yuan. Tencent’s core businesses – gaming, marketing, and social media – generated 95.9 billion Chinese yuan, a 16% increase compared to the same period last year. This growth signals continued resilience in the Chinese tech sector despite global economic headwinds.
Domestic game revenue rose 15%, propelled by the recent releases of “Delta Force” and “VALORANT MOBILE,” which Tencent described as “China’s most successful mobile game launch year-to-date.” International gaming revenue experienced even more substantial growth, soaring 43% year-over-year to 20.8 billion Chinese yuan, driven by titles like “Clash Royale” and “Dying Light: The Beast,” as well as contributions from Supercell games and recent acquisitions. Tencent has been investing heavily in its cloud infrastructure, aiming to compete with established players like Amazon Web Services, Google Cloud, and Microsoft Azure – a move detailed in their recent capital expenditure increases.
The company has also been focused on enhancing its AI capabilities, updating its foundational model, HunYuan, to improve performance in coding, math, and science. Tencent also utilizes DeepSeek in select products. Shares of Tencent are up 56.7% year-to-date, reflecting investor confidence in the company’s strategic direction. You can find more information about Tencent’s business segments on their official website.
Tencent officials stated they will continue to focus on AI development and international expansion in the coming quarters.
Tencent on Thursday posted 15% year-on-year revenue growth, with AI boosting the Chinese tech giant’s performance in advertising targeting and gaming.
Here’s how Tencent performed in the third quarter of 2025, per earnings released on Thursday:
- Revenue: 192.9 billion Chinese yuan ($27.12 billion), surpassing the 189.2 billion Chinese yuan expected analysts, according to data compiled by LSEG.
- Operating profit: 63.6 billion yuan, versus 58.01 billion yuan expected by the street.
Gaming, marketing and social media services, which makes up Tencent’s core business, raked in 95.9 billion Chinese yuan, representing 16% year-on-year growth.
Domestic games venues rose 15% over the same period, driven by the recently-released “Delta Force” and “VALORANT MOBILE,” the latter of which has become “China’s most successful mobile game launch year-to-date,” Tencent said.
International gaming efforts, which has been its fastest-growing segment in recent times, soared 43% year-on-year to 20.8 billion Chinese yuan. The firm attributed this growth to “Clash Royale” and “Dying Light: The Beast,” as well as higher revenues from Supercell’s games and an acquisition.
Tencent boosted its capital expenditure earlier this year as it ramped up AI and eyed European expansion for its cloud computing services, which would compete against market leaders Amazon Web Services, Google Cloud and Microsoft Azure.
The company updated its foundational AI model, HunYuan, improving its coding, math, and science capabilities. The tech firm also uses DeepSeek in some products.
Tencent shares are up 56.7% year-to-date.
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