Tencent Holdings, a world-leading Chinese internet and technology company, has announced its second quarter (Q2) results for the quarter ended 30 June 2025. The company recorded a 15% year-on-year increase, driven by strong gaming performance and strategic AI investments.
The company posted a double-digit growth in both revenue and non-IFRS operating profit compared to the same period last year.
Chairman and CEO Ma Huateng highlighted that the company’s performance was boosted by strategic investment in Artificial Intelligence (AI(, which enhanced products and services across its platforms.
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He said,
“During the second quarter of 2025, we delivered double-digit revenue and non-IFRS operating profit growth on a year-on-year basis, as we invested in, and also benefited from, utilising AI. Our games performed well in terms of users and revenue as evergreen games such as Honour of Kings and Peacekeeper Elite evolve into platforms while increasing their usage of AI, and as new games such as Delta Force broke out.
“Our marketing services revenue sustained rapid growth as we upgraded our advertising foundation model, leading to better performance of advertisements across our traffic platforms. We are striving to bring further benefits of AI to consumers and enterprises through powering more use cases within Weixin, driving usage of our AI native app Yuanbao, and upgrading the capabilities of our HunYuan foundation models.”
Tencent Q2 2025 Financial Highlights
Revenue: Total revenues were RMB184.5 billion, up 15% year-on-year, over the second quarter of 2024.
Gross Profit: RMB105.0 billion, up 22% year-on-year.
Non-IFRS Operating Profit: RMB69.2 billion, up 18% year-on-year, with the operating margin rising to 38%.
Non-IFRS Net Profit: RMB64.8 billion, up 11% year-on-year.
IFRS Net Profit: RMB56.0 billion, up 16% year-on-year.
Capital Expenditure: RMB19.1 billion, representing a 119% year-on-year increase.
Total Cash: RMB468.4 billion, with free cash flow of RMB43.0 billion, up 7% year-on-year.
Share Buybacks: 38.9 million shares repurchased for HKD19.4 billion.
Q2 2025 Business Review and Outlook
Tencent continued to integrate AI across its ecosystem during the quarter. In Weixin, AI-powered citations, intelligent merchant responses, and automated video summaries were introduced. In gaming, AI was deployed to speed up content creation, enhance virtual teammate realism, and improve non-player character interactions—boosting engagement and revenues for both domestic and international titles.
The release of Delta Force in September 2024 proved especially successful, surpassing 20 million monthly active users and ranking among the top five games in China by DAU and top three by revenue as of July 2025. Internationally, Supercell’s Clash Royale hit a seven-year high in monthly gross receipts after content updates and community engagement efforts.
Tencent’s AI-powered advertising capabilities improved content creation, targeting, and performance tracking, increasing click-through rates and advertiser ROI. The company also maintained leadership in China’s streaming market, with Tencent Video holding 114 million subscribers and Tencent Music reaching 124 million.
FinTech Services recorded positive year-on-year growth in commercial payment volume, supported by improved consumer spending. Meanwhile, Tencent advanced its HunYuan foundation models, with the HunYuan 3D model earning top rankings on Hugging Face for geometric precision and texture fidelity, gaining traction among game developers, 3D printing firms, and design professionals.
Tencent’s aggressive investment in Artificial Intelligence is no doubt paying off, as the company’s approach to AI is not a monolithic pursuit of technological supremacy but a masterclass in strategic balance. The company has architected a comprehensive framework that combines aggressive internal research and development with a pragmatic external investment portfolio, all underpinned by disciplined financial management and a clear focus on practical application. This multi-pronged strategy is designed to maximize opportunity while mitigating the immense risks inherent in the AI revolution, positioning Tencent not just as a creator of AI, but as the central hub of its ecosystem.
Looking ahead
The tech giant has expressed confidence in its continued ability to deliver growth by expanding AI use cases for consumers and enterprises, strengthening its gaming ecosystem, and enhancing advertising and fintech services.