NetEase Inc

NetEase closed out its fiscal fourth quarter of 2025 with results that disappointed on both the top and bottom lines, as the Chinese gaming and internet giant reported earnings per share of $1.58 against a consensus estimate of $14.12, a miss of 88.81%, while revenue of $27.55 billion fell 4.07% short of the $28.71 billion analysts had expected. Despite the shortfall, revenues did grow 3.0% year-over-year, with gaming and related services advancing 3.4% on the strength of titles including Fantasy Westward Journey Online, Marvel Rivals, and Where Winds Meet, which surpassed 80 million cumulative players globally. The headline earnings miss was driven primarily by unfavorable investment fair value changes and heavier foreign exchange losses, which weighed heavily on net income and obscured otherwise solid operational progress. Gross margins improved on lower royalty and revenue-sharing costs, though rising marketing expenses partially offset those gains. Looking ahead, management is leaning into AI integration across the full game development cycle as a core growth lever, with analysts at at least one firm reiterating a bullish outlook on the company's franchise pipeline and global expansion trajectory.