Advertisement
Tencent’s shares have been on a roll this week. On Wednesday, the stock jumped almost 5% after the company revealed its latest earnings. The rally didn’t stop there. By Thursday, shares rose another 2.4%, reaching their highest level since April 2021.
The excitement comes from results that beat market forecasts by a comfortable margin. For the three months ending June 30, Tencent brought in 184.5 billion yuan in revenue. That’s about $25.7 billion and a 15% jump from the same time last year. Analysts were expecting a smaller figure of 178.5 billion yuan, so this was a clear win.
Profit numbers were just as impressive. Net income rose 27% to 55.6 billion yuan. Again, that was higher than what the market predicted.
A big driver was gaming. In its home market, Tencent made 40.4 billion yuan from games, up 17% from last year. This boost came from new game launches and more player activity. Internationally, the story was even stronger. Overseas gaming revenue jumped 35% to 18.8 billion yuan, showing Tencent’s global reach is paying off.
Advertising also delivered solid growth. Sales from ads rose 20% to 35.8 billion yuan. A lot of this came from demand for more precise ad targeting, powered by Tencent’s artificial intelligence tools. Businesses are clearly willing to spend more if their ads reach the right audience.
The company is also putting serious money into the future. Capital spending more than doubled to 19.1 billion yuan. Much of this is going into AI projects, including Tencent’s own Hunyuan Turbo S model. The company is also teaming up with outside developers to make sure it stays competitive in this fast-moving space.
For investors, the results are a reminder that Tencent isn’t just surviving in a competitive tech market—it’s finding ways to grow in both its traditional gaming stronghold and in newer areas like AI-driven advertising. That combination is what’s sending the stock higher.