By Sherry Qin
Tencent Holdings is scheduled to report third-quarter results on Thursday. Here's what you need to know:
NET PROFIT FORECAST: The Chinese videogame and social-media company's quarterly net profit likely rose 6.9% to 56.89 billion yuan, equivalent to US$7.99 billion, according to the consensus estimate from a FactSet poll of 13 analysts.
REVENUE FORECAST: Third-quarter revenue likely rose 13% to 189.15 billion yuan. Tencent's robust game lineup including evergreen titles like "Honor of Kings" and new releases including "Delta Force" should support its revenue growth. CGS International analysts projected Tencent's third-quarter gaming revenue to have risen 18% on year.
Tencent's shares have risen 54% so far this year after rising 32% in the third quarter. Easing trade tensions between the U.S. and China and the artificial-intelligence buzz have fueled investor appetite for tech stocks such as Tencent. Beijing's bid to reduce China's reliance on foreign technology has also set a positive policy backdrop after years of regulatory crackdowns on the domestic tech sector.
WHAT TO WATCH:
--Tencent in September accounted for eight of the top 10 mobile games by iOS grossing in China, Citi analysts said in a recent note. The average time spent on "Delta Force" in August has surpassed that of "Honor of Kings" as well as "Peackeeper Elite," signaling the game's strong traction in terms of user activity and engagement, Citi said. Investors will pay attention to management comments on the gaming business and updates on Tencent's new game pipeline.
--Tencent leveraged AI to post stronger-than-expected earnings from its game and marketing businesses in the second quarter. Analysts view Tencent as a key pick for Chinese AI exposure. Tencent is Bernstein's top long-term pick in the internet sector, and it thinks the market undervalues the company's potential to drive business improvement via AI. "The state of internet penetration in China means the AI application layer has the potential to progress more quickly than in the rest of the world," Bernstein said in a note.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
November 10, 2025 23:03 ET (04:03 GMT)
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