Tencent's profitability is truly remarkable. The company has just released its 2025 financial results. Revenue reached 751.766 billion yuan, marking a 14% year-over-year increase. Gross profit soared to 422.593 billion yuan, up 21% compared to the previous year. The business is not only expanding but also becoming significantly more profitable. Net profit amounted to 229.801 billion yuan, a 17% increase, equating to approximately 630 million yuan in net earnings per day. The gross profit margin improved further, rising from 53% in 2024 to 56% in 2025. The net profit margin also reached an impressive 30.57%. This means for every 100 yuan of business, the gross profit is 56 yuan, and the net profit is over 30 yuan, a profitability level that rivals even banks.

For comparison, NVIDIA, a leader in AI chips, reported a net profit of 120 billion U.S. dollars for its 2025 fiscal year. Apple's net profit for the same period was 112 billion U.S. dollars. While Tencent's figures are substantial, they remain smaller than these global giants. However, compared to other domestic internet companies, Tencent's performance is significantly stronger.

Consider these figures: Alibaba's net profit for 2025 has not yet been released, but its 2024 net profit was 154.5 billion yuan. Pinduoduo's 2025 results are also pending, with a 2024 net profit of 112.4 billion yuan. JD.com's net profit fell to just 19.3 billion yuan in 2025 due to intense competition in the food delivery sector. Baidu reported a net profit of only 5.6 billion yuan for 2025. Xiaomi's 2025 figures are not available, but its 2024 net profit was 23.7 billion yuan. NetEase achieved a net profit of 33.8 billion yuan in 2025. Meituan is projected to report a loss of at least 23.3 billion yuan for 2025, also impacted by the food delivery battle. Ctrip's net profit for 2025 was 33.4 billion yuan. Kuaishou's 2025 results are not out, but its 2024 net profit was 15.3 billion yuan.

To put it into perspective, Tencent's profit is roughly equivalent to 1.5 times that of Alibaba, twice that of Pinduoduo, and about double the combined profits of JD.com, Baidu, Xiaomi, NetEase, Meituan, Ctrip, and Kuaishou. The scale is immense.

Tencent's employees are also reaping significant rewards. Last year, the company allocated 130.7 billion yuan for employee compensation. With an average annual salary reaching 1.13 million yuan for its 115,800 employees in 2025, a new record high, working at Tencent for a decade can indeed make one a multimillionaire.

What drives such exceptional profitability? Firstly, the gaming division delivered outstanding performance. In the past year, Tencent's Value-Added Services revenue grew 16% to 369.281 billion yuan. This includes domestic game revenue of 164.2 billion yuan, up 18%, and international game revenue of 74.4 billion yuan, surging 33%. Social network revenue, comprising income from Channels live streaming services, music subscription fees, and in-app purchases for mobile games, reached 127.7 billion yuan, a modest 5% increase. It appears that gaming remains a resilient pastime, potentially even more popular during economic pressures.

Secondly, online advertising revenue, or marketing services income, increased by 19% to 145 billion yuan, with AI technologies playing a crucial role in this growth. Finally, revenue from FinTech and Business Services, which includes wealth management, lending, and payment services, grew 8% to 229.4 billion yuan. A common characteristic of these business segments is their exceptionally high gross profit margins, typically exceeding 50%. Furthermore, the application of AI has contributed to a general improvement in these margins.

With a massive user base of 1.418 billion monthly active WeChat users, Tencent undoubtedly possesses a significant advantage in monetization. As of the end of 2025, Tencent's cash and cash equivalents stood at 107.145 billion yuan, which may seem modest. However, its external investments approach nearly one trillion yuan, demonstrating a powerful strategy of leveraging capital to generate more capital. The company also maintained substantial investment in research and development, which reached 85.747 billion yuan in 2025.