NetEase

NTES

Market cap $71.9B

Apple's decision to lower App Store commission fees in mainland China is expected to provide a modest but meaningful boost to the profitability of leading gaming firms Tencent and NetEase, according to Morningstar. The iPhone maker said it would reduce fees on in-app purchases and paid transactions to 25% from 30%, effective Sunday.

Alibaba Group and NetEase shares are showing technical signs of stabilization as Chinese equities attempt to bottom after a prolonged slump.

NetEase (NTES) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Investors interested in Internet - Software and Services stocks are likely familiar with NetEase (NTES) and Tyler Technologies (TYL). But which of these two stocks offers value investors a better bang for their buck right now?

NTES joins four peers in lifting dividends as resilient markets, rate-cut hopes and volatility spur investors toward steady income plays.

NetEase remains a Buy. Its Q4 2025 results were below expectations due to non-operational factors and delayed revenue recognition. NetEase's contract liabilities surged 34% YoY, signaling robust deferred revenue that is likely to be recognized in subsequent quarters. AI- and tax-related fears appear to be overstated, implying that the stock's 11% price pullback in the past two months is overdone.

NetEase, Inc. delivered modest 3% YoY revenue growth, driven by strong performance from self-developed games and new content updates. NTES benefited from higher-margin in-house titles and reduced reliance on licensed games, supporting profitability despite intensified competition from Tencent. Youdao and Cloud Music segments saw revenue gains from AI-driven personalization and premium memberships, though social entertainment revenue declined.

NTES posts a Q4 earnings miss as profits fall 24%, but revenues rise 7.5% on game strength and AI push, with a dividend declared as cash rises and titles grow.

NetEase, Inc. (NTES) Q4 2025 Earnings Call Transcript

HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial results for the fiscal year 2025 ended December 31, 2025. Summary of Key Financial Metrics  (RMB in thousands, unless otherwise stated) Year ended 31 December 2025 2024 (Unaudited) (Unaudited) Revenue 7,759,450 7,950,146 Gross profit 2,769,592 2,681,512 Operating profit 1,621,952 1,170,847 Profit before income tax 2,067,738 1,570,255 Profit for the year (1) 2,745,828 1,565,369 Non-IFRS Measure (2 ) : Adjusted operating profit 1,733,749 1,309,418 Adjusted net profit 2,860,007 1,700,078 Note : (1)  During the year ended 31 December 2025, the Group recognised a deferred income tax credit of RMB746.7 million which primarily arose from the recognition of deferred tax assets in respect of cumulative tax losses incurred by a wholly-owned subsidiary.