China's NetEase Q4 revenue rises on self-developed games

NetEase

11/02/2026 08:40

Overview

China internet and game services provider's Q4 revenue rose 3% yr/yr

Q4 net income fell compared to previous quarter and yr/yr

Company extended share repurchase program for additional 36 months

Outlook

NetEase plans to deepen collaboration with partners worldwide to enhance its global presence

Company focuses on AI integration to improve game development and production efficiency

NetEase aims to extend franchise longevity through creative talent and AI advancements

Result Drivers

AI INTEGRATION - Co achieved comprehensive integration of AI across game development, enhancing production efficiency and gameplay innovation

GAME PORTFOLIO EXPANSION - Global launch of Sword of Justice and traction for Where Winds Meet boosted engagement

SELF-DEVELOPED GAMES - Higher revenues from self-developed games like Fantasy Westward Journey Online contributed to growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
RMB 27.55 bln
Q4 Adjusted EPS
RMB 2.19
Q4 Adjusted Net Income
RMB 7.10 bln
Q4 Net Income
RMB 6.37 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", no "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$245.50, about 27.2% above its February 10 closing price of HK$193.00

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn3MYRx6a

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(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.)