NetEase

NTES

Market cap $79.5B

NetEase is a cash-rich gaming compounder with solid fundamentals, shareholder-friendly management, and attractive headline valuation but faces a persistent China discount. Q1 results showed margin quality with 6.1% revenue growth and 14.8% gross profit growth, but EPS stagnation underscores the need for new titles to drive earnings. NTES remains heavily concentrated in gaming (81.9% of FY25 revenue), with limited diversification and ongoing China policy risks impacting valuation multiples.

NetEase, Inc. (NTES) Q1 2026 Earnings Call Transcript

NetEase NASDAQ: NTES reported higher first-quarter revenue for 2026, driven by continued growth in its games business and stronger gross margins, while management highlighted momentum across major titles including Where Winds Meet, Marvel Rivals and the Fantasy Westward Journey franchise.

China-based video game publisher NetEase topped analyst estimates for the first quarter. But NTES stock fell after the report.

HANGZHOU, China, May 21, 2026 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI solutions provider specializing in learning and advertising, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights Total net revenues were RMB1.3 billion (US$195.4 million), representing a 3.8% increase from the same period in 2025.

HANGZHOU, China, May 7, 2026 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI solutions provider specializing in learning and advertising, today announced that it will report its first quarter 2026 financial results on Thursday, May 21, 2026, before the open of the U.S. markets. The earnings teleconference call with simultaneous webcast will take place at 6:00 a.m.

NetEase is rated as a Buy, with an estimated fair price of $141.7, 24.2% above the current price, even after discounting risks. NTES will be able to increase revenue thanks to its successful global expansion and longer-lasting live service games, while it will increase its margins from AI efficiency gains and lower distribution costs. The worries of AI being a disruptor for online games are overstated. To truly leverage AI will require vast asset and data libraries, as well as operational expertise.

HANGZHOU, China, April 15, 2026 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI solutions provider specializing in learning and advertising, today announced that the Company had filed its annual report on Form 20-F for the full year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The annual report is available on the Company's investor relations website at ir.youdao.com and on the SEC's website at www.sec.gov.

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.