Companies /Communication Services

NetEase Inc

NASDAQ: NTES Electronic Gaming & Multimedia
$116.62
▼ $1.17 (−0.99%) today
Markets closed · 10:04pm ET

Q3 2025 Earnings

Reported Nov 20, 2025, 6:17am ET · SEC source
$2.09
Miss −85.91%
EPS · est. $14.83
$4.0B
Miss −86.34%
Revenue · est. $29.2B
−2.4%
Trailing market
NTES vs S&P since report
5 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%+6%Nov 20Nov 21report 6:17am ETearnings−1.4%+5.1%
−3%0+3%+6%Nov 20Nov 21earnings−1.4%+5.1%
NTES +5.1%S&P 500 −1.4%
−4%0+4%Nov 20Nov 21report 6:17am ETearnings−2.8%+5.1%
−4%0+4%Nov 20Nov 21earnings−2.8%+5.1%
NTES +5.1%NASDAQ −2.8%
0+4%+8%Nov 19Nov 26report 6:17am ETearnings+1.5%+6.3%
0+4%+8%Nov 19Nov 26earnings+1.5%+6.3%
NTES +6.3%S&P 500 +1.5%
−4%0+4%+8%Nov 19Nov 26report 6:17am ETearnings+1.0%+6.3%
−4%0+4%+8%Nov 19Nov 26earnings+1.0%+6.3%
NTES +6.3%NASDAQ +1.0%
+0.40%
Day of report
−0.28%
Next session
+3.06%
One week
+3.05%
30 days

S&P 500 over the same 30 days: +5.43%.

Did NTES Beat Earnings? Q3 2025 Results

NetEase posted a steep Q3 2025 miss, with earnings per share of $2.09 falling 85.91% short of the $14.83 consensus estimate, while revenue of $3.98 billion trailed expectations by 86.34% and declined 84.8% year over year, reflecting the significant gap between reported figures denominated in yuan and Wall Street estimates calibrated to local currency conversions. Stripping away the currency translation noise, the underlying business showed genuine momentum, with the core games and related value-added services segment growing 11.8% year over year, powered by enduring franchises like Fantasy Westward Journey Online and newer titles including Where Winds Meet and Marvel Rivals. A surge in marketing spend tied to the global debut of Destiny: Rising weighed on operating expenses, climbing 8.9% in the period. Looking ahead, NetEase has a loaded pipeline, with Diablo IV set for a China launch on December 12 and Sea of Remnants targeting 2026, while the board's extension of its $5 billion share repurchase program through January 2029 helped lift investor sentiment following the report.

Key Takeaways
  • Fantasy Westward Journey Online achieved four successive record peak concurrent player counts reaching 3.58 million
  • Strong year-over-year growth from self-developed games including Fantasy Westward Journey Online, Eggy Party, Where Winds Meet and Marvel Rivals
  • Online game operations accounted for 97.6% of gaming segment revenues, up from 96.8% YoY
  • Favorable fair value changes of equity security investments and lower net exchange losses boosted other income
  • Lower effective tax rate of 13.0% vs 16.1% in Q3 2024

“We delivered another quarter of solid execution, underscoring our healthy growth in China and rising global appeal. Over the years, we have honed our innovation capabilities and proven them title after title by delivering exceptional gaming experiences. This edge has afforded us a strong domestic foundation to extend our distinctive, sophisticated games to players worldwide.”

NetEase CEO, on the earnings call

Forward Guidance & Outlook

NetEase continues to build its global gaming pipeline with several titles launched or planned for global markets. Sword of Justice and Where Winds Meet launched globally on November 7 and 14, respectively. Diablo IV is scheduled to launch in China on December 12. Sea of Remnants is advancing toward a planned 2026 launch. The company aims to expand its distinctive games to players worldwide while raising the bar for creativity and tech-inspired gaming experiences.

NTES YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$8.0B$16.0B$24.0B$26.2B$4.0BRevenue$16.5B$2.6BGross Profit$7.1B$1.1BOperating Income$6.5B$1.2BNet Income
$0$8.0B$16.0B$24.0BRevenueGross ProfitOperating IncomeNet Income

NTES Revenue by Segment

Games and Related Value-Added Services$3.3B+11.8%
Innovative Businesses and Others$202.1M−18.9%
NetEase Cloud Music$275.9M−1.8%
Youdao$228.8M+3.6%

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