NetEase, Inc. reported its unaudited third‑quarter 2025 results, posting total revenue of RMB 28.4 billion (US$4.0 billion). Revenue rose 1.7% from the prior quarter and 8.2% from the same period a year earlier, driven largely by the games and related value‑added services segment, which generated RMB 23.3 billion—an 11.8% year‑over‑year increase.
NetEase’s net income attributable to shareholders reached RMB 8.6 billion (US$1.2 billion), a 32% year‑over‑year gain. Basic earnings per share were US$0.38 (US$1.90 per ADS). The company also reported a non‑GAAP EPS of US$2.07 (US$1.90 per ADS), which fell slightly short of the consensus estimate of US$2.09. The basic EPS figure is far below consensus, but the non‑GAAP number aligns more closely with analyst expectations, reflecting the company’s emphasis on operating performance.
The cash balance at quarter‑end was RMB 153.2 billion (US$21.5 billion), underscoring NetEase’s strong liquidity position. Gross profit margin expanded to 64.1% from 63.2% a year earlier, driven by a higher mix of high‑margin PC games and efficient cost management in the gaming segment.
CEO William Ding said the quarter “demonstrated solid execution, with healthy growth in China and rising global appeal.” He added that NetEase continues to “strengthen its innovation capabilities by releasing sophisticated titles that build a solid foundation at home while expanding reach to players worldwide.”
Investors reacted cautiously, citing the revenue miss against the consensus estimate of US$4.1 billion (RMB 29.01 billion). The market’s focus on the revenue shortfall, despite strong gaming performance, highlights the importance of top‑line growth to investor sentiment.
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