Companies /Communication Services

NetEase Inc

NASDAQ: NTES Electronic Gaming & Multimedia
$116.62
▼ $1.17 (−0.99%) today
Markets closed · 11:13pm ET

Q2 2025 Earnings

Reported Aug 14, 2025, 6:01am ET · SEC source
$2.09
Miss −86.12%
EPS · est. $15.06
$3.9B
Miss −86.38%
Revenue · est. $28.6B
+18.8%
Beating market
NTES vs S&P since report
5 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%Aug 14Aug 15report 6:01am ETearnings−0.2%+1.9%
−3%0+3%Aug 14Aug 15earnings−0.2%+1.9%
NTES +1.9%S&P 500 −0.2%
−3%0+3%Aug 14Aug 15report 6:01am ETearnings−0.5%+1.9%
−3%0+3%Aug 14Aug 15earnings−0.5%+1.9%
NTES +1.9%NASDAQ −0.5%
0+4%+8%Aug 13Aug 22report 6:01am ETearnings−1.1%+4.2%
0+4%+8%Aug 13Aug 22earnings−1.1%+4.2%
NTES +4.2%S&P 500 −1.1%
−4%0+4%+8%Aug 13Aug 22report 6:01am ETearnings−2.7%+4.2%
−4%0+4%+8%Aug 13Aug 22earnings−2.7%+4.2%
NTES +4.2%NASDAQ −2.7%
−3.88%
Day of report
−0.35%
Next session
+1.70%
One week
+21.13%
30 days

S&P 500 over the same 30 days: +2.33%.

Did NTES Beat Earnings? Q2 2025 Results

NetEase delivered a sharply disappointing second quarter, with earnings and revenue falling well short of analyst expectations. The Chinese gaming giant posted non-GAAP EPS of $2.09, missing the $15.06 consensus estimate by 86.12%, while revenue of $3.89 billion trailed the $28.58 billion consensus by 86.38%, representing a 84.7% year-over-year decline. Despite those headline misses, the underlying filing tells a more nuanced story: net revenues actually grew 9.4% organically, with the games segment advancing 13.7% YoY to $3.18 billion on the strength of Identity V, Marvel Rivals, and Blizzard-licensed titles. GAAP net income attributable to shareholders rose to $1.20 billion from $943.00 million a year ago, aided by net exchange gains. Looking ahead, NetEase is leaning on a deepening content pipeline, including the ocean adventure RPG Sea of Remnants, global launches for Where Winds Meet and Sword of Justice, and a new China-exclusive World of Warcraft server set to open in November.

Key Takeaways
  • Higher net revenues from Identity V, Where Winds Meet, and Marvel Rivals drove year-over-year games growth
  • Certain licensed games including Blizzard titles contributed to revenue growth
  • Online marketing services and learning services growth at Youdao
  • Net exchange gains in Q2 2025 versus net exchange losses in Q2 2024 boosted net income
  • Lower effective tax rate of 14.7% versus 16.0% year-over-year

“In the second quarter, we grew our player community with thrilling new content that reinforces our position as a creator of high-impact, genre-defining games. At the core of our expansion is product innovation, disciplined execution and deep community engagement, all capabilities we have honed over many years and powered by our strong technological foundation. We will continue to push the boundaries of player experiences, scaling original IP to build lasting franchises and growing alongside our collaborative global partners.”

NetEase CEO, on the earnings call

Forward Guidance & Outlook

NetEase plans to continue pushing boundaries of player experiences, scaling original IP to build lasting franchises, and growing alongside global partners. The company's pipeline includes original ocean adventure RPG Sea of Remnants and story-driven action-adventure game Blood Message, along with plans to bring Sword of Justice and Where Winds Meet to the global market. A new China-exclusive World of Warcraft server is set to launch in November.

NTES YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$8.0B$16.0B$24.0B$25.5B$3.9BRevenue$16.0B$2.5BGross Profit$7.0B$1.3BOperating Income$6.8B$1.2BNet Income
$0$8.0B$16.0B$24.0BRevenueGross ProfitOperating IncomeNet Income

NTES Revenue by Segment

Games and Related Value-Added Services$3.2B+13.7%
Innovative Businesses and Others$237.2M−17.8%
NetEase Cloud Music$274.8M−3.5%
Youdao$197.9M+7.2%

Figures from SEC filings and company reports. Not investment advice.