Tencent (700) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 15% year-over-year to RMB184.5 billion, with double-digit growth in gross profit, operating profit, and net income, driven by AI investments, product innovation, and strong performance in games, marketing, and FinTech.

• Profit attributable to equity holders increased 17% year-over-year to RMB55.6 billion, with non-IFRS net profit up 10% to RMB63.1 billion.

• Diluted EPS for Q2 2025 was RMB6.115, up 20% year-over-year; non-IFRS diluted EPS was RMB6.793, up 13%.

• AI investments enhanced user experience and operational efficiency, notably in games, advertising, and productivity tools.

• No interim dividend was declared for H1 2025; final dividend of RMB37.5 billion for FY2024 was paid.

Financial highlights

• Q2 2025 gross profit increased 22% year-over-year to RMB105.0 billion; gross margin improved to 57% from 53% a year ago.

• Operating profit for Q2 2025 was RMB60.1 billion, up 18% year-over-year; non-IFRS operating profit was RMB69.2 billion, up 18%.

• Free cash flow for Q2 2025 was RMB43.0 billion, up 7% year-over-year.

• Adjusted EBITDA margin for Q2 2025 was 46%, up from 43% a year earlier.

• Net cash position at June 30, 2025 was RMB74.6 billion, down from RMB90.2 billion at March 31, 2025 due to dividend payments.

Outlook and guidance

• Management expects continued growth from AI-driven product enhancements, further monetization of core platforms, and ongoing cost efficiency improvements.

• Focus remains on leveraging AI across products, expanding use cases, and driving innovation in games, advertising, and cloud services.

• Cloud business positioned for accelerated growth, not solely dependent on GPU supply.