Tencent’s Q2 2025 earnings shocked investors with a 15% revenue jump to ¥184.5 billion, fueled by explosive growth in gaming and AI-driven advertising. The company’s stock soared 3%, buoyed by a broader rally in Chinese tech shares, while analysts at Tiger Securities raised their price target to HK$645, citing structural advantages in AI integration.
Gaming and AI Power Profits
Domestic gaming revenue rose 17% to ¥40.4 billion, while international sales surged 35% to ¥18.8 billion, driven by hits like Delta Force and PUBG Mobile. Meanwhile, AI-powered ad solutions boosted marketing revenue by 20% to ¥35.8 billion, enhancing targeting efficiency. Operating profit climbed to ¥63.1 billion, exceeding expectations, as Tencent Music—its streaming subsidiary—also posted record gains, with shares rocketing 16%. The results underscore Tencent’s dual strength in content monetization and technological innovation, positioning it for sustained growth.