China’s largest social media and gaming powerhouse, Tencent Holdings, delivered a 9% rise in first-quarter revenue, underscoring continued resilience in its core entertainment business and growing traction in artificial intelligence-driven services.

For the three months ended March 31, the Shenzhen-based firm generated revenue of 196.5 billion yuan (about $28.94 billion). That figure came in slightly below analyst expectations of 198.96 billion yuan, according to estimates compiled by LSEG, suggesting that while growth remains intact, it has not fully matched market forecasts.

Profitability also showed some softness. Net profit reached 58.1 billion yuan, falling short of the 61.42 billion yuan expected by analysts. Despite the miss, the results highlight a company still supported by strong engagement in its gaming segment and continued investment in new growth areas such as AI services, which Tencent has been steadily integrating across its ecosystem.

Overall, the quarter reflects a familiar pattern for the Chinese tech giant: solid underlying demand balancing against heightened expectations from investors tracking both its gaming dominance and its evolving push into artificial intelligence.