Chinese gaming company NetEase's Q2 revenue rises 9.4%
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 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/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| RMB 27.89 bln |
|
Q2 Adjusted Net Income |
| RMB 9.50 bln |
|
Q2 Net Income |
| RMB 9.09 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 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: ID:nPn6Z5yvBa
Related Articles
What Is the Fed’s Monetary Policy Framework? Does the 2025 Update Mean a More Hawkish or Dovish Fed?
TradingKey - As Federal Reserve Chair Jerome Powell signaled rate cuts at the 2025 Jackson Hole symposium, the Fed also unveiled a major update to its five-year monetary policy framework review, reflecting the need to adapt to new economic realities. Compared to the 2020 framework, the 2025 version
Nvidia Q2 Earnings Expectations: With Little Room for Error, Will China-Related Risks Be Magnified?
TradingKey - Ahead of Nvidia Q2 FY2026 earnings report, multiple Wall Street firms have raised their price targets on Nvidia, reflecting strong confidence in AI demand. While analysts continue to forecast robust ~50% year-over-year growth in revenue and EPS, the China variable remains a major risk
Fed at a Crossroads: Powell Faces the Spotlight at Jackson Hole in a Moment of Fed Uncertainty
TradingKey - The annual Jackson Hole Symposium is currently underway, with Federal Reserve Chair Jerome Powell’s speech on Friday, August 22, drawing global attention. Amid growing internal divisions within the Fed and external pressure from the Trump administration to reshape its leadership, will
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
CoreWeave’s Q2 FY2025: AI Surge Drives Record Revenue, but Profit Challenges Persist
TradingKey - CoreWeave, Inc. (NASDAQ: CRWV) Q2 FY2025 earnings delivered strong revenue growth but missed earnings expectations, which led to a roughly 10% stock price drop in after-hours trading. Revenue surged 207% year-over-year, driven by robust demand for its GPU-intensive AI cloud platform.
