Tencent Posts 15% Q2 Revenue Growth Driven By Gaming And AI Expansion

Tencent Holdings has reported a 15% year-on-year increase in revenue for the second quarter of 2025, boosted by strong performances in both its domestic and international gaming segments, alongside growing benefits from artificial intelligence-driven services.

The Chinese tech giant recorded total revenue of 184.5 billion yuan (\$25.4 billion) for the three-month period ending June 30, exceeding analyst expectations of 178.5 billion yuan. Net profit for the quarter reached 55.6 billion yuan, also surpassing forecasts of 52.3 billion yuan.

Domestic gaming revenue rose by 17% to 40.4 billion yuan, with the flagship title *Honor of Kings maintaining its position as one of China’s most lucrative games. International gaming revenue surged by 35% to 18.8 billion yuan, driven largely by the popularity of Dungeon & Fighter Mobile and other blockbuster titles.

The company’s online marketing services business also delivered strong results, with revenue climbing 20% year-on-year to 35.8 billion yuan. Tencent credited the growth to improvements in AI-enhanced advertising strategies that have increased engagement and conversion rates for brands using its platforms.

Tencent has significantly increased its spending on AI infrastructure and capabilities. The firm’s total capital expenditure in 2024 was 76.8 billion yuan, and Q2 2025’s capital expenditure more than doubled compared to the same period last year, reaching 19.1 billion yuan.

In AI development, Tencent continues to advance its large language model Hunyuan, launching the upgraded Hunyuan Turbo S in February. The company also incorporates third-party AI systems such as DeepSeek, which powers various services including the WeChat messaging platform, used by over a billion people monthly. Tencent’s AI assistant Yuanbao became the most-downloaded iPhone app in China in March, reflecting growing consumer adoption of its AI offerings.

With gaming still a major revenue driver and AI investments expanding rapidly, Tencent appears positioned to strengthen its leadership in China’s digital economy. The company’s performance in Q2 suggests that the combination of entertainment, advertising, and advanced technology will remain at the core of its growth strategy in the coming quarters.