NASDAQ$NTES

NetEase Inc.-ADR · Q1 2025 earnings

Q1 2025 earnings · · Before market open · Investor relations

Briefing

NetEase reported solid growth in Q1 2025, driven by strong performance across new and existing game titles.

NetEase delivered strong Q1 results with revenue reaching $4.00B and adjusted EPS of $2.44 per ADS, fueled by hit titles and sustained game engagement.

  • Revenue reached $4.00B, reflecting growth in online game services.
  • Adjusted EPS came in at $2.44 per ADS, supported by higher profitability.
  • Net income rose to $1.42B, aided by lower operating expenses and successful game launches.
  • New titles like Marvel Rivals and FragPunk saw rapid adoption and strong global traction.

Headline financials

Total Revenue

$3.97B

Previous: $3.74B+6.3%
EPS (adj)

$2.44

Previous: $1.81+34.8%
Capital Expenditures

-$104M

Previous: -$88.8M-16.6%
Net Income

$1.42B

Previous: $1.06B+33.7%
Operating Income

$1.44B

Previous: $1.06B+35.7%
Gross Profit

$2.55B

Previous: $2.37B+7.6%

Revenue & EPS history

NetEase · Revenue · Quarterly

$3.97B

Q1 2025+6.3%vs Q1 2024
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

NetEase · $30.5B total across 4 segments · Q1 2026

  • Games and related VAS
    $25.7B
  • NetEase Cloud Music
    $2B
  • Innovative businesses and others
    $1.5B
  • Youdao
    $1.3B

Forward guidance

NetEase expects continued growth from its expanding game pipeline and international presence, though some segments like innovative businesses may face near-term pressure.

Tailwinds

  • Strong launch momentum for new titles such as Marvel Rivals and FragPunk.
  • Expansion of global user base through international mobile and PC launches.
  • Sustained performance from legacy franchises like Fantasy Westward Journey and Naraka.
  • Robust content updates and community engagement strategies.
  • Return of Blizzard titles contributing to peak engagement in China.

Headwinds

  • Decline in revenues from innovative businesses and Yanxuan.
  • Year-over-year drop in Youdao revenues due to shift in service prioritization.
  • Lower revenue from social entertainment services within Cloud Music.
  • Ongoing cost pressures in R&D and content acquisition.
  • Exposure to FX risks and potential regulatory shifts in China.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.0%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.4%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+16.7%

Q4 2016

Best reaction

-17.2%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.4%
Q4 2025-4.1%-2.4%-4.9%
Q3 2025+0.5%+4.9%+3.0%
Q1 2025+14.6%+13.0%+20.8%
Q4 2024-2.6%-4.4%-6.8%
Q3 2024+12.1%+12.3%+25.1%
Q1 2024-8.0%-7.3%-8.8%
Q4 2023-3.9%-5.6%-7.8%
Q3 2023+1.8%+1.2%-10.6%
Q2 2023-3.8%+2.2%-0.8%
Q1 2023+7.2%+1.8%+11.5%
Q4 2022-8.6%-9.8%+3.9%
Q3 2022-5.5%-8.2%-0.0%
Q2 2022-7.5%-4.4%-9.7%
Q1 2022+0.5%+7.2%-6.4%
Q4 2021+8.9%+2.1%+2.3%
Q3 2021+1.2%+3.9%-11.1%
Q2 2021+8.1%+3.8%-4.7%
Q1 2021+5.1%+11.9%+5.7%
Q4 2020-6.5%-6.3%-11.5%
Q3 2020+9.4%+14.1%+10.9%
Q2 2020-2.8%+1.1%-4.0%
Q1 2020+2.2%-2.5%+7.2%
Q4 2019-4.7%-8.2%-10.8%
Q3 2019+2.0%+5.6%+5.8%
Q2 2019+11.9%+10.6%+31.1%
Q1 2019+6.4%-1.8%+1.4%
Q4 2018-4.7%-2.4%+1.2%
Q3 2018+8.0%+8.9%+15.8%
Q2 2018-13.9%-17.5%-26.1%
Q1 2018-7.6%-12.3%-4.3%
Q4 2017-7.7%-6.0%-0.4%
Q3 2017+9.3%+15.2%+19.2%
Q2 2017-8.1%-9.8%-11.7%
Q1 2017+1.8%+4.5%+11.7%
Q4 2016+16.7%+16.1%+13.8%
Q3 2016-8.2%-12.5%-10.2%
Q2 2016-2.6%-0.3%+11.6%
Q1 2016+1.7%
Q4 2015-13.4%
Q3 2015+4.2%
Q2 2015-5.4%
Q1 2015+10.3%
Q4 2014+2.9%
Q3 2014+4.4%
Q2 2014+3.3%
Q1 2014-0.6%
Q4 2013+1.0%
Q3 2013-1.1%
Q2 2013+3.7%
Q1 2013-2.9%
Q4 2012+6.7%
Q3 2012-17.2%
Q2 2012+2.0%
Q4 2011+0.6%
Q1 2012-5.7%
Q3 2011-13.2%
Q4 2010+0.7%
Q4 2009+0.7%
Q4 2008+0.7%
Q2 2011+0.7%
Q1 2011+7.6%
Q3 2010-5.0%
Q2 2010+3.1%
Q1 2010-3.1%

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