Tencent Holdings (NYSE:TME) reported stronger-than-expected third-quarter earnings, with revenue climbing 15% from a year earlier and coming in 2% above market estimates.
Growth was led by a standout performance in the company’s gaming division, which expanded 23% year-on-year — outperforming expectations by 4% and driven largely by international titles. Gross gaming receipts advanced 21%, a notable acceleration from the 15% increase recorded in the second quarter of 2025.
Advertising revenue also posted a solid quarter, rising 21% and edging past consensus by around 1%. Tencent’s Financial and Business Services (FBS) segment grew 10%, matching forecasts.
Overall gross profit rose 22% compared with the same period last year, beating estimates by 3%. The company’s gross margin improved to 56.4%, up 1.3 percentage points year-on-year.
Non-IFRS operating profit grew 18%, slightly ahead of expectations, though part of this strength was tempered by increased selling, marketing, and administrative expenses, including higher R&D investment.
Tencent continued to deploy significant capital toward shareholder returns, repurchasing HK$21.1 billion in stock during the quarter — an increase from HK$19.4 billion in Q2. The company is aiming for more than HK$80 billion in buybacks for full-year 2025.
Capital spending came in at 13.0 billion yuan, down from 19.1 billion yuan in the previous quarter. Tencent has previously guided that 2025 capex would remain in the low-teens percentage range relative to overall revenue.