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Investing.com -- Chinese tech giant Tencent Holdings delivered strong third-quarter results with revenue increasing 15% year-over-year, exceeding market expectations by 2%.
The company’s gaming segment showed impressive performance with 23% growth, beating estimates by 4%, primarily driven by international games. Gross receipts rose 21%, accelerating from the 15% growth recorded in the second quarter of 2025.
Advertising revenue grew 21%, slightly ahead of forecasts by 1%, while the Financial and Business Services (FBS) segment increased 10%, in line with expectations.
Gross profit jumped 22% compared to the same period last year, surpassing estimates by 3%. The gross profit margin reached 56.4%, representing a 1.3 percentage point improvement year-over-year.
Non-IFRS operating profit rose 18%, marginally exceeding analyst expectations by 1%. The revenue and gross profit beats were partially offset by higher selling and marketing expenses, as well as general and administrative costs, which include research and development spending.
Tencent continued its share repurchase program, buying back HK$21.1 billion worth of shares in the third quarter, up from HK$19.4 billion in the previous quarter. The company has set a full-year 2025 buyback target exceeding HK$80 billion.
Capital expenditure for the quarter stood at 13.0 billion yuan, down from 19.1 billion yuan in the second quarter. Tencent had previously guided for full-year 2025 capital expenditure to be in the low teens as a percentage of total revenue.
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