Tencent 4Q25 Results: AI Investment to Partly Weigh Down Margins in FY26
What’s new: Tencent’s reported 4Q25 revs that were largely in line with consensus and above our expectations. Rev growth momentum could remain resilient in 1Q across key business segments. Tencent plans to at least double investments in AI to more than RMB36bn which could partly weigh down margins in FY26. We maintain our PT at HKD750.Analysts:
Jin Yoon
Tencent Holdings Limited is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. The Company operates through three main segments. The VAS segment is mainly involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Others segment is mainly involved in provision of payment related services, cloud services and other services.
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