China's NetEase Q1 revenue rises on games segment growth

NetEase

21/05/2026 09:40

Overview

China online game provider's Q1 revenue rose 6% yr/yr to RMB30.6 bln

Adjusted EPS for Q1 rose to RMB3.49 from RMB3.21 a year earlier

Company declared Q1 dividend of $0.144 per share, down from prior quarter

Outlook

NetEase says it will focus on global expansion and content innovation in coming quarters

Result Drivers

GAMES SEGMENT GROWTH - Higher net revenues from self-developed games such as Fantasy Westward Journey and Where Winds Meet drove overall revenue growth

CONTENT UPDATES AND ENGAGEMENT - Sustained strong engagement and revenue performance across established titles, supported by high-cadence content updates and gameplay innovation

COST CONTROL - Gross profit rose due to lower product costs and reduced revenue-sharing costs related to platforms

Company press release: ID:nPnqWFZya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 30.59 bln
Q1 Adjusted EPS
RMB 3.49
Q1 Adjusted Net Income
RMB 11.3 bln
Q1 Net Income
RMB 10.85 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for NetEase Inc is HK$247.50, about 37.2% above its May 20 closing price of HK$180.40

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)