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NetEase shares fall 3% after revenue misses expectations

Published 20/11/2025, 10:44
NetEase shares fall 3% after revenue misses expectations
NTES
1.55%

HANGZHOU, China - On Thursday, NetEase, Inc. (NASDAQ:NTES) reported third quarter earnings that beat analyst estimates, and revenue that fell short of expectations.

The Chinese internet and gaming giant posted revenue of RMB28.4 billion ($4.0 billion) for the quarter ended September 30, missing the consensus estimate of RMB29.01 billion despite growing 8.2% YoY.

The company’s shares fell 3% in pre-market trading after the results.

The company reported adjusted earnings per share of RMB14.73 ($2.09 per ADS), slightly above analyst expectations of RMB14.65. NetEase’s gaming division, which accounts for the bulk of its revenue, grew 11.8% YoY to RMB23.3 billion ($3.3 billion).

"We delivered another quarter of solid execution, underscoring our healthy growth in China and rising global appeal," said William Ding, Chief Executive Officer and Director of NetEase. "Over the years, we have honed our innovation capabilities and proven them title after title by delivering exceptional gaming experiences."

The company’s flagship title Fantasy Westward Journey Online demonstrated continued strength, achieving four consecutive record peak concurrent player counts during the quarter, reaching a height of 3.58 million players. NetEase also expanded its global portfolio with new releases including Destiny: Rising, which topped iOS download charts in multiple regions.

Youdao, the company’s education technology segment, saw revenue increase 3.6% YoY to RMB1.6 billion ($228.8 million), while NetEase Cloud Music revenue decreased 1.8% to RMB2.0 billion ($275.9 million).

Gross profit for the quarter rose 10.3% YoY to RMB18.2 billion ($2.6 billion), while operating expenses increased 8.9% to RMB10.2 billion ($1.4 billion), primarily due to increased marketing expenditures for online games.

The board approved a dividend of $0.57 per ADS for the third quarter, payable in December.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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