Tencent earnings beat forecasts as AI drives gaming, ads growth

Tencent reported stronger-than-expected results for 2025, with revenue surpassing analyst estimates as artificial intelligence plays a larger role across its business lines.

The Chinese technology group is increasingly utilising AI to refine advertising, enhance gaming engagement, and expand its cloud computing unit.

The performance highlights how Tencent is evolving beyond its traditional gaming dominance while still relying on it for core cash flow.

Growth across fintech and social platforms also contributed, showing how the company is combining multiple digital services to support long-term expansion in a more competitive technology environment.

AI boosts ads and engagement

Tencent posted full-year revenue of 751.8 billion Chinese yuan ($109 billion), slightly ahead of the 750.7 billion yuan expected by analysts, according to LSEG data.

The company said improvements in AI capabilities helped sharpen ad targeting and increase user engagement across its platforms.

Ma Huateng, Chairman and CEO of Tencent, said these gains were driven by enhanced AI systems that improved how content is delivered and monetised.

He added that Tencent’s core businesses continue to generate strong cash flows, allowing the company to invest further in AI talent and infrastructure.

The company has been ramping up spending in artificial intelligence as it competes with other Chinese tech firms in a rapidly evolving space, where innovation cycles are becoming shorter and competition more intense.

Gaming remains the backbone

Gaming continued to anchor Tencent’s revenue growth.

Domestic gaming revenue rose 18% year-on-year to 164.2 billion yuan, supported by strong performance from new title Delta Force and established games.

International gaming revenue reached 77.4 billion yuan, reflecting ongoing expansion in overseas markets.

Tencent has been strengthening its global gaming presence to reduce reliance on the domestic market and capture new user bases.

While diversification efforts are gaining pace, gaming remains central to Tencent’s financial structure and continues to fund its broader ambitions across AI and cloud.

Fintech and social networks expand

Tencent’s fintech and business services division reported revenue of 229.4 billion yuan, up 8% year-on-year.

This segment includes payments and enterprise solutions, which are becoming increasingly important to the company’s ecosystem.

Revenue from social networks rose 5% to 127.7 billion yuan, driven by continued engagement on platforms such as WeChat.

These services support advertising and payments, reinforcing Tencent’s integrated digital model.

The steady growth in these segments reflects the company’s strategy of combining social media, financial services, and content to deepen user activity while improving monetisation opportunities across its platforms.

Cloud growth and quarterly momentum

Tencent has been expanding its cloud computing business as part of its diversification strategy.

The company has said it plans to extend its cloud operations into Europe, signalling its intent to compete globally.

Fourth-quarter total revenue rose 13% year-on-year to 194.4 billion yuan, exceeding analyst expectations of 193.5 billion yuan.

The quarterly performance suggests that Tencent is entering the next phase of growth, with AI playing a central role across its platforms.