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Tencent reported Q4 IFRS profit of RMB 6.276 up from RMB 5.485 YoY.
TCEHY revenues rose 13% YoY, led by VAS, marketing services, and gaming titles like Delta Force.
Gross profit jumped 19% with margin expansion, while operating expenses increased 18.2% y/y.
Tencent (TCEHY - Free Report) posted fourth-quarter 2025 earnings of 98 cents per share, up 19.5% year over year. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share.
In domestic currency, IFRS earnings was RMB 6.276 per share compared with the year-ago quarter’s figure of RMB 5.845 per share.
In dollar terms, Tencent reported revenues of $27.41 billion. The Zacks Consensus Estimate for revenues was pegged at $27.83 billion. GAAP net revenues increased 13% year over year to RMB 194.4 billion.
Revenues from the VAS increased 14% year over year to RMB 89.9 billion and accounted for 46.3% of GAAP net revenues. Revenues from Marketing Services were RMB 41.1 billion, up 17.5% year over year. Revenues from FinTech and Business Services and Others were RMB 60.8 billion and RMB 2.5 billion, respectively, which increased 8.4% and 9.7% year over year, respectively.
Tencent Holding Ltd. Price, Consensus and EPS Surprise
The largest contributors to total revenues were Delta Force, Valorant (PC+ Mobile), Wuthering Waves, PUBG Mobile and Supercell Games Portfolio, which includes Clash of Clans, Clash Royale and Brawl Stars.
Delta Force is a major driver of domestic growth and registered 15% year-over-year growth, while the Supercell Games Portfolio recorded 32% growth in international markets.
Operating Details of TCEHY
Tencent’s gross profit rose 19% year over year to RMB 108.3 billion. Gross margin expanded to 56% on a year-over-year basis from 52.6% in the year-ago quarter.
Operating expenses rose 18.2% year over year to RMB 49.3 billion.
Selling and marketing expenses increased 26.2% year over year to RMB 13 billion. General and administrative expenses rose 15.5% year over year to RMB 36.3 billion.
IFRS operating income was RMB 60.3 billion compared with RMB 51.5 billion in the year-ago quarter, representing a significant improvement.
TCEHY’s Balance Sheet Details
As of Dec. 31, 2025, Tencent had RMB 141 billion in cash and cash equivalents compared with RMB 159.9 billion as of Sept. 30, 2025. The company had restricted cash of RMB 7 billion and term deposits of RMB 236.8 billion.
For the fourth quarter of 2025, capital expenditures were RMB 19.6 billion, while free cash flow was RMB 182.6 billion, up 18% year over year
ACM Research shares have lost 21.2% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release first-quarter 2026 results on May 14. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries shares have returned 206.7% in the past 12 months. The company is scheduled to release its first-quarter 2026 results on April 29. AEIS currently carries a Zacks Rank #1.
Arrow Electronics shares have gained 31.5% in the past 12 months. The company is set to report its first-quarter fiscal 2026 results on May 7. ARW currently sports a Zacks Rank #1.
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Tencent Q4 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Tencent (TCEHY - Free Report) posted fourth-quarter 2025 earnings of 98 cents per share, up 19.5% year over year. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share.
In domestic currency, IFRS earnings was RMB 6.276 per share compared with the year-ago quarter’s figure of RMB 5.845 per share.
In dollar terms, Tencent reported revenues of $27.41 billion. The Zacks Consensus Estimate for revenues was pegged at $27.83 billion. GAAP net revenues increased 13% year over year to RMB 194.4 billion.
Revenues from the VAS increased 14% year over year to RMB 89.9 billion and accounted for 46.3% of GAAP net revenues. Revenues from Marketing Services were RMB 41.1 billion, up 17.5% year over year. Revenues from FinTech and Business Services and Others were RMB 60.8 billion and RMB 2.5 billion, respectively, which increased 8.4% and 9.7% year over year, respectively.
Tencent Holding Ltd. Price, Consensus and EPS Surprise
Tencent Holding Ltd. price-consensus-eps-surprise-chart | Tencent Holding Ltd. Quote
Gaming Metric Details
The largest contributors to total revenues were Delta Force, Valorant (PC+ Mobile), Wuthering Waves, PUBG Mobile and Supercell Games Portfolio, which includes Clash of Clans, Clash Royale and Brawl Stars.
Delta Force is a major driver of domestic growth and registered 15% year-over-year growth, while the Supercell Games Portfolio recorded 32% growth in international markets.
Operating Details of TCEHY
Tencent’s gross profit rose 19% year over year to RMB 108.3 billion. Gross margin expanded to 56% on a year-over-year basis from 52.6% in the year-ago quarter.
Operating expenses rose 18.2% year over year to RMB 49.3 billion.
Selling and marketing expenses increased 26.2% year over year to RMB 13 billion. General and administrative expenses rose 15.5% year over year to RMB 36.3 billion.
IFRS operating income was RMB 60.3 billion compared with RMB 51.5 billion in the year-ago quarter, representing a significant improvement.
TCEHY’s Balance Sheet Details
As of Dec. 31, 2025, Tencent had RMB 141 billion in cash and cash equivalents compared with RMB 159.9 billion as of Sept. 30, 2025. The company had restricted cash of RMB 7 billion and term deposits of RMB 236.8 billion.
For the fourth quarter of 2025, capital expenditures were RMB 19.6 billion, while free cash flow was RMB 182.6 billion, up 18% year over year
Tencent’s Rank & Other Stocks to Consider
Currently, TCEHY carries a Zacks Rank #2 (Buy).
ACM Research (ACMR - Free Report) , Advanced Energy Industries (AEIS - Free Report) , and Arrow Electronics (ARW - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
ACM Research shares have lost 21.2% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release first-quarter 2026 results on May 14. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries shares have returned 206.7% in the past 12 months. The company is scheduled to release its first-quarter 2026 results on April 29. AEIS currently carries a Zacks Rank #1.
Arrow Electronics shares have gained 31.5% in the past 12 months. The company is set to report its first-quarter fiscal 2026 results on May 7. ARW currently sports a Zacks Rank #1.