Tencent beats FY estimates as AI capabilities boost sales

18th Mar 2026 09:55

(Sharecast News) - WeChat owner Tencent Holdings reported another double-digit increase in turnover for the end of 2025 as fourth-quarter results topped market expectations.

The tech giant, which operates across a host of industries including video games, social networking, ecommerce and music, said revenues rose 13% year-on-year over the final three months of the year to RMB194.4bn ($28.2bn), with operating profits 17% ahead at RMB69.5bn.

That took full-year sales to RMB751.8bn ($109.2bn), up 14% compared with 2024, while operating profits rose 18% to RMB280.7bn.

The Value Added Services or VAS division, which houses its online games and social networking operations, reported sales of RMB369.3bn for 2025, representing 16% growth over the year, as strong performances from recent releases such as Delta Force and higher sales from evergreen games like Honour of Kings and Peacekeeper Elite boosted growth.

Marketing Services revenues were up 19% at RMB145.0bn, driven by growth in pricing and ad impressions, while the FinTech and Business Services arm grew 8% to RMB229.4bn.

Tencent's Value-Added Services (VAS) segment is its largest revenue driver, focusing on online games and social network services (including live streaming and paid subscriptions).

"We sustained healthy growth rates in 2025, as AI capabilities improved our ad targeting and supported more engagement with our games, and as our cloud business delivered improving revenue growth and profit at scale," said chair and chief executive Ma Huateng.

"Our highly resilient and cash generative core businesses provide us with the resources to fund our increasing investments in AI, including recruiting top-tier AI talent and upgrading our AI infrastructure."