Chinese gaming company NetEase Q3 revenue rises

NetEase

20/11/2025 08:40

Overview

NetEase Q3 2025 revenue rises 8.2% yr/yr to RMB28.4 bln (US$4.0 billion)

Games and related services revenue up 11.8% yr/yr in Q3

Net income for Q3 2025 was RMB8.6 bln, non-GAAP net income RMB9.5 bln

Company extends $5 bln share repurchase program by 36 months

Outlook

Company aims to sustain momentum through creativity and tech-inspired games

NetEase sees strong domestic foundation supporting global game distribution

Result Drivers

GAMING REVENUE - Co's gaming revenue grew 11.8% yr/yr, driven by self-developed games like Fantasy Westward Journey Online and new launches such as Where Winds Meet

NEW GAME LAUNCHES - Destiny: Rising and new titles like Sword of Justice and Where Winds Meet boosted global and domestic engagement

INCREASED EXPENSES - Operating expenses rose 8.9% yr/yr due to higher marketing spend on online games

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
RMB 28.36 bln
Q3 Adjusted Net Income
RMB 9.50 bln
Q3 Net Income
RMB 8.79 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "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 12.2% above its November 19 closing price of HK$215.60

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn3lF9w9a

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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.)