Tencent Holdings Limited (TCEHY) Announced Q4 2025 Earnings on March 18, 2026, Reporting "total revenue was RMB 194.4 billion, up 13% year-on-year."

Tencent Holdings Limited reported its financial results for the fourth quarter of 2025.

Management announced "total revenue was RMB 194.4 billion, up 13% year-on-year". During the quarter, "Gross profit was RMB 108.3 billion, up 19% year-on-year" and "Overall gross margin was 56%, up 3 percentage points year-on-year". Executives also highlighted that "Free cash flow was RMB 34 billion, increasing over 6x year-on-year". On a non-IFRS basis, "operating profit was RMB 69.5 billion, up 17% year-on-year" and "Net profit attributable to equity holders was RMB 64.7 billion, up 17% year-on-year".Discussing strategic initiatives, the company emphasized its focus on integrating artificial intelligence.

Management stated "we prioritized leveraging AI to reinforce our core businesses" and are now advancing to "add development of new AI products to our priorities". Executives detailed that "Our spending on our 2 biggest new AI products, Hunyuan and Rembao, was RMB 7 billion in the fourth quarter of 2025 and RMB 18 billion for the full year". The company indicated that "We expect to more than double these investments in Hunyuan, Yuanbao and other new AI products in 2026, which we intend to fund from increasing earnings from our core businesses".Providing forward guidance, management addressed capital allocation by stating "we will likely buy back lower value of our shares versus 2025 to fund investment in AI while increasing our dividends". The company noted that for the full year of 2025, "we repurchased 153 million shares with a total consideration of HKD 80 billion". Executives announced "we are proposing an annual dividend of HKD 5.3 per share, reflecting an 18% year-on-year increase". This dividend will be payable to shareholders on the 1st of June 2026.

The company shared several product milestones, noting "our international games business surpassed USD 10 billion in annual revenue for the first time". In domestic games, the new release Delta Force "surpassed 50 million peak daily active users" in February 2026.

The enterprise software division saw Tencent Cloud achieve "RMB 5 billion adjusted operating profit" in 2025.

Regarding their foundation model progress, management announced that "Hunyuan 3.0 is in internal testing".