Tencent (700) Q4 2025 earnings summary

Executive summary

• Achieved high-quality growth in 2025, driven by evergreen products, AI integration, and international expansion, with international games revenue surpassing USD10 billion.

• AI investments enhanced game development, user engagement, marketing efficiency, and cloud profitability, with HunYuan 3.0 in internal testing.

• Video Accounts time spent rose over 20% YoY; Mini Programs and Marketing Services saw rapid engagement and revenue growth.

• Cloud business reached profitability at scale, benefiting from improved pricing and strong AI demand.

• Final dividend proposed at HKD5.30 per share, up 18%, subject to AGM approval.

Financial highlights

• FY2025 revenue grew 14% YoY to RMB751.8 billion; Q4 2025 revenue up 13% YoY to RMB194.4 billion.

• Gross profit for FY2025 rose 21% YoY to RMB422.6 billion; Q4 2025 gross profit up 19% YoY.

• Non-IFRS net profit attributable to equity holders increased 17% YoY to RMB259.6 billion for FY2025.

• Diluted EPS (non-IFRS) for FY2025 was RMB27.877, up 19% YoY.

• Free cash flow for FY2025 was RMB182.6 billion, up 18% YoY.

Outlook and guidance

• AI investments in HunYuan, Yuanbao, and new products expected to more than double in 2026, funded by core business earnings.

• Monetization of new AI products expected to follow usage growth over time.

• Cloud and FinTech businesses projected to benefit from rising enterprise AI demand and eCommerce growth.