Overview

* NetEase Q2 2025 revenue up 9.4% yr/yr to RMB27.9 bln

* Net income attributable for Q2 2025 rises to RMB8.6 bln

* Non-GAAP net income for Q2 2025 reaches RMB9.5 bln

Outlook

* Company focuses on product innovation and global expansion

* NetEase ( NTES ) to scale original IP for lasting franchises

* Company emphasizes deep community engagement and technological foundation

Result Drivers

* GAMES GROWTH - Net revenues from games and related services rose 13.7% yr/yr, driven by new launches and existing franchise momentum

* CLOUD MUSIC DECLINE - NetEase Cloud Music revenues fell 3.5% yr/yr, attributed to declines in social entertainment services

* INNOVATIVE BUSINESS DROP - Revenues from innovative businesses decreased 17.8% yr/yr, primarily due to lower Yanxuan and advertising service revenues

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB

Revenue 27.89

bln

Q2 RMB 9.50

Adjusted bln

Net

Income

Q2 Net RMB 9.09

Income bln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 1 "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 ( NTES ) is HK$226.10, about 4.7% above its August 13 closing price of HK$215.40

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(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.)