Tencent Music Entertainment Group (NYSE:TME) Financial Overview and Market Position

Font: Financial Modeling Prep  • Mar 17, 2026

• Tencent Music Entertainment Group (NYSE:TME) reported a 15.9% year-on-year increase in total revenue for Q4 2025, driven by a 21.7% rise in online music services.
• Despite strong financial results, TME's share price dropped by more than 20% due to changes in the disclosure of user metrics.
• Macquarie analyst Ellie Jiang set a price target of $10.70 for TME, indicating a potential undervaluation by the market.

Tencent Music Entertainment Group (NYSE:TME) is a leading online music entertainment platform in China, offering a variety of services including music streaming, online karaoke, and live music events. TME competes with other major players in the digital music space, such as NetEase Cloud Music and global giants like Spotify.

On March 17, 2026, Ellie Jiang from Macquarie set a price target of $10.70 for TME. At that time, the stock was trading at $11.37, indicating a price difference of approximately -5.89% from the target. This suggests that the market may have been overvaluing the stock compared to Macquarie's assessment.

TME reported strong fourth-quarter earnings, with total revenue for Q4 2025 increasing by 15.9% year-on-year to RMB8.64 billion (approximately $1.24 billion). This growth was largely driven by a 21.7% rise in online music services, which amounted to RMB7.10 billion (around $1.02 billion). Revenue from music subscriptions also saw a 13.2% increase, totaling RMB4.56 billion (about $653 million).

Despite these positive financial results, TME's share price dropped by more than 20% due to changes in the disclosure of user metrics. Non-IFRS diluted earnings per ADS rose to RMB1.60 (approximately $0.23), up from RMB1.47 the previous year. Similarly, IFRS diluted earnings per ADS increased to RMB1.41 (around $0.20) from RMB1.26.

CEO Ross Liang emphasized the company's focus on AI-driven initiatives and user-centric strategies, which have been instrumental in driving growth. The stock for TME is currently priced at $11.37, reflecting a decrease of $3.72 or approximately -24.65% in percentage terms. Over the past year, the stock has reached a high of $26.70 and a low of $11.33.