ByteDance profit plunges on AI push as TikTok Shop powers overseas growth: reports
SCMP Tech / 4/20/2026
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Key Points
- ByteDance’s net profit reportedly fell by more than 70% in 2025 as the company invested heavily in AI.
- Reported overseas revenue increased by nearly 50%, outpacing growth in China (about 20%), with TikTok Shop cited as a key driver.
- Multiple Chinese outlets, including Securities Times and 36Kr, attribute the overseas momentum to stronger performance in international markets.
- The reports suggest a strategic shift where AI spending pressures profitability in the short term while commerce growth abroad helps offset it.
ByteDance, the parent company of TikTok and Douyin, saw its net profit plummet by more than 70 per cent in 2025 as it poured money into artificial intelligence, according to Chinese media reports.
At the same time, revenue from overseas markets surged by nearly 50 per cent, far outpacing the roughly 20 per cent growth in China, according to reports on Monday by outlets including Securities Times and 36Kr, which cited a person familiar with the matter.
For the first time, overseas revenue...
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