NetEase misses Q2 top and bottom line estimates, shares dip

Published 14/08/2025, 09:46

Investing.com -- NetEase (HK:9999) (NASDAQ:NTES) shares slumped more than 8% in U.S. premarket trading Thursday after the Chinese internet technology company reported second-quarter earnings and revenue that missed analyst expectations.

NetEase reported second-quarter earnings of RMB14.81 per share, missing the consensus estimate of RMB14.92. Revenue was RMB27.9 billion, up 9.4% year-over-year, but also below the RMB28.54 billion consensus.

Net revenues from games and related value-added services rose 13.7% year-on-year to RMB22.8 billion (US$3.2 billion). Youdao net revenues grew 7.2% to RMB1.4 billion (US$197.9 million).

NetEase Cloud Music recorded net revenues of RMB2.0 billion (US$274.8 million), down 3.5% from a year earlier, while innovative businesses and other segments brought in RMB1.7 billion (US$237.2 million), a 17.8% decline.

"In the second quarter, we grew our player community with thrilling new content that reinforces our position as a creator of high-impact, genre-defining games," said William Ding, CEO and Director of NetEase.

"Beyond games, we remain focused on innovation, refining our products and content to deliver long-term value for our users, partners and shareholders," he added. 

The company also named Kok Chung Johnny Chan as an independent director, effective August 14, 2025.

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