Tencent Holdings Ltd. reported second-quarter revenue of 184.5 billion yuan ($25.7 billion), a 15 percent year-on-year increase that surpassed the 178.5 billion-yuan consensus compiled by LSEG. Net profit rose to 55.6 billion yuan, also ahead of analyst expectations, as the Chinese technology group continued to rebound from two years of regulatory and pandemic-related headwinds. Gaming remained the main growth engine. Domestic game sales climbed 17 percent to 40.4 billion yuan, buoyed by titles such as Honor of Kings and Dungeon & Fighter Mobile, while international game revenue jumped 35 percent to 18.8 billion yuan. Advertising and other marketing services grew 20 percent to 35.8 billion yuan, helped by improved AI-driven targeting on the WeChat super-app, which retains more than one billion monthly users. Tencent continued to ramp up spending on artificial intelligence. Capital expenditure for the quarter more than doubled to 19.1 billion yuan, and executives said 2025 capex will climb to the “low-teens” percentage of total revenue, from 76.8 billion yuan in 2024. The company is rolling out its proprietary Hunyuan large language model—most recently the "Turbo S" upgrade—and has integrated third-party models such as DeepSeek across products, including the Yuanbao virtual assistant. Management said AI adoption is widening margins across gaming, advertising and cloud services and should provide “dry powder” for global expansion. Investor optimism was reflected in a gain of up to 3.9 percent in shares of Prosus NV, Tencent’s largest shareholder, during European trading.