NetEase, Inc. NTES

Communication ServicesSoftware & IT ServicesChina

Last close 113.64 USD on Nov 1, 2026, −15.8% year to date

Quant rating

Quant rating A Rank 19 of 152 in Communication Services

Growth A 16 of 152
Valuation B 37 of 152
Quality A 1 of 152
Revisions C 65 of 152
Momentum C 102 of 152

Wall Street consensus Buy (1.80)Average target 162.36 USD +42.9%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 72.8B
Enterprise value: 48.9B
52-week range: 106.11 – 149.02
3-year range: 76.28 – 159.34
Dividend yield: 2.58%
Beta (5 years): 0.65
Shares outstanding: 3,202M
Next earnings: Nov 18, 2026

About the company

NetEase Inc is a company principally engaged in the gaming business. The Company operates through four segments. Games and Related Value-Added Services segment is engaged in the development and sale of mobile games, game operations, and other value-added services, including in-game virtual items and prepaid credits. Youdao segment provides learning services, smart devices, and online marketing services. The segment's products and services include online courses and digital content services. NetEase Cloud Music segment provides online music services, social entertainment services, and other services through the sale of membership subscriptions for various content and service packages, primarily through the sale of virtual items. Innovative Businesses and Others segment provides rigorous selection, advertising services, email, and other value-added services.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	16,105	14,425	14,577	13,991	13,792	–
Revenue growth	11.6%	−1.0%	4.2%	1.4%	22.2%	7.4%
EPS (basic, normalized)	8.39	7.15	6.98	5.01	4.64	–
EPS growth	17.4%	2.4%	39.3%	8.0%	–	–
Gross margin	64.3%	62.5%	60.9%	54.7%	53.6%	59.2%
Net margin	30.0%	28.2%	28.4%	20.4%	19.2%	25.3%
ROE	22.6%	22.6%	25.7%	19.7%	19.0%	21.9%

Balance sheet, last quarter
Cash & short-term investments (mil)	25,850
Current ratio	3.45x
Long-term debt (mil)	0
Net debt (mil)	−23,333
Total equity (mil)	24,626
Net debt / equity	−0.95x
Net debt / EBITDA	−4.24x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	16,105	+11.6%	3.0x	5,509	+23.2%	8.9x	8.39	+17.4%	13.5x
2026	18,125	+12.5%	2.7x	7,271	+32.0%	6.7x	9.26	+10.4%	12.3x
2027	19,527	+7.7%	2.5x	7,892	+8.5%	6.2x	10.77	+16.2%	10.6x
2028	20,778	+6.4%	2.4x	8,556	+8.4%	5.7x	11.66	+8.3%	9.7x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	18,125	−0.2%	−0.1%	+0.4%	9.26	−0.7%	−4.6%	−1.1%
2027	19,527	−0.2%	−0.4%	−0.6%	10.77	−0.3%	+0.8%	+3.7%
2028	20,778	−0.3%	−1.1%	−1.0%	11.66	−0.3%	−0.2%	+3.9%

Earnings surprises EPS beat in 1 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	26,852	25,486	26,210	26,748	28,829	27,892	28,359	27,547	30,591	30,107
Sales mean (mil)	26,887	25,937	26,788	27,178	28,487	28,457	29,156	28,712	29,567	29,402
Surprise	−0.1%	−1.7%	−2.2%	−1.6%	+1.2%	−2.0%	−2.7%	−4.1%	+3.5%	+2.4%
EPS reported	13.10	12.05	11.63	15.09	17.51	14.81	14.73	10.95	17.46	12.02
EPS mean	12.69	12.11	12.51	12.73	13.98	14.92	14.78	14.20	15.15	15.21
Surprise	+3.3%	−0.5%	−7.0%	+18.5%	+25.3%	−0.7%	−0.3%	−22.9%	+15.3%	−21.0%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
NTES NetEase, Inc.	72.8B	−4.24x	30.0%	2.90x	12.3x	10.6x	6.7x	6.2x
MSFT Microsoft Corporation	3.88T	0.22x	40.3%	8.24x	26.2x	21.9x	16.2x	13.1x
0700 Tencent Holdings Limited	444.6B	0.29x	29.9%	2.61x	11.2x	10.8x	8.5x	7.8x
NFLX Netflix, Inc.	254.9B	0.49x	24.3%	8.70x	17.3x	16.5x	15.3x	13.3x
BABA Alibaba Group Holding Limited	243.9B	−0.48x	10.3%	1.45x	14.6x	10.3x	9.1x	6.5x
PDD PDD Holdings Inc.	111.9B	−4.50x	22.7%	1.66x	7.6x	6.3x	2.7x	2.3x
Mean		−1.37x	26.2%	4.26x	14.9x	12.7x	9.8x	8.2x
Median		−0.13x	27.1%	2.75x	13.4x	10.7x	8.8x	7.2x

Technical analysis

1M−6.1%
3M−10.4%
1Y−19.8%
3Y+14.7%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, NetEase, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	16,105	14,425	14,577	13,991	13,792	11,290
Cost of revenue	5,752	5,410	5,693	6,340	6,397	5,316
Gross profit	10,353	9,016	8,885	7,650	7,395	5,974
Selling, general & administrative expenses	2,695	2,562	2,658	2,624	2,594	2,157
Research & development	2,534	2,401	2,323	2,180	2,216	1,589
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	386	178	−38.6	8.1	3.0	8.5
Other operating expenses	0	0	0	0	0	0
Operating income	4,738	3,875	3,943	2,838	2,581	2,220
Net interest income (expense)	945	936	707	555	629	−14.7
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	155	82.5	148	123	112	151
Net income before taxes	5,839	4,893	4,798	3,516	3,322	2,356
Provision for taxes	863	748	662	730	650	466
Minority interest	−148	−76.5	8.4	71.7	−18.8	−41.0
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	4,828	4,069	4,144	2,858	2,654	1,849
Extraordinary items	–	0	0	90.6	0	0
Net income	4,828	4,069	4,144	2,949	2,654	1,849
EBIT, normalized	5,124	4,053	3,904	2,846	2,585	2,228
EBITDA, normalized	5,446	4,384	4,334	3,260	3,100	2,758
Basic EPS, normalized	8.39	7.15	6.98	5.01	4.64	–

Balance sheet in millions of USD, fiscal years

Balance sheet, NetEase, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	23,253	18,848	17,854	17,030	15,355	14,325
Receivables	1,035	1,123	1,309	945	1,123	1,027
Total inventory	98.6	78.3	98.0	144	152	95.2
Prepaid expenses	562	500	422	451	642	534
Other current assets	879	455	421	510	537	545
Total current assets	25,828	21,005	20,104	19,081	17,808	16,526
Property, plant & equipment	1,251	1,241	1,243	1,048	1,020	817
Goodwill	265	254	261	314	93.7	48.9
Intangibles	136	194	266	307	412	632
Long-term investments	3,068	3,183	3,217	3,120	3,877	2,811
Note receivable	73.9	170	217	252	24.7	30.3
Other long-term assets	1,040	803	887	926	952	878
Total assets	31,662	26,851	26,195	25,048	24,188	21,743
Liabilities
Accounts payable	92.0	98.7	124	219	155	174
Payable/accrued	–	–	–	–	–	–
Accrued expenses	1,946	1,857	1,892	1,777	1,638	1,374
Short-term debt	913	1,617	2,711	3,462	3,047	2,989
Current portion of long-term debt	–	–	–	–	–	–
Other current liabilities	4,538	3,231	2,859	2,782	3,111	2,627
Total current liabilities	7,489	6,804	7,586	8,239	7,950	7,164
Long-term debt	0	58.6	60.3	530	201	0
Minority interest	688	522	535	601	645	1,788
Other liabilities	564	466	503	493	385	205
Total liabilities	8,740	7,851	8,684	9,863	9,181	9,157
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	0.4	0.4	0.4	0.4	0.4	0.4
Additional paid-in capital	1,407	1,351	3,185	3,314	5,969	4,265
Retained earnings (accumulated deficit)	21,766	18,123	16,027	13,390	12,396	10,022
Treasury stock	−217	−613	−1,788	−1,582	−3,228	−1,601
Other equity	−34.0	138	86.9	62.6	−130	−99.7
Total equity	22,922	19,000	17,510	15,185	15,007	12,586
Total liabilities & shareholders' equity	31,662	26,851	26,195	25,048	24,188	21,743

Cash flow statement in millions of USD, fiscal years

Cash flow statement, NetEase, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	4,976	4,145	4,136	2,877	2,673	1,890
Depreciation, depletion & amortization	321	331	430	414	516	530
Deferred taxes	−179	43.9	18.5	71.0	64.2	13.5
Non-cash items	890	415	340	148	170	650
Changes in working capital	1,247	500	53.0	507	502	731
Cash from operations	7,256	5,436	4,978	4,017	3,924	3,814
Investing activities
Capital expenditures	−293	−302	−602	−383	−490	−504
Other investing cash flows	−4,451	2,757	−1,799	−685	−625	−3,970
Cash from investing	−4,745	2,455	−2,401	−1,069	−1,114	−4,474
Financing activities
Financing cash flow items	14.8	18.6	12.1	–	337	−41.1
Cash dividends paid	−1,977	−1,530	−1,129	−975	−552	−656
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−921	−2,234	−1,908	−509	−1,766	2,216
Cash from financing	−2,883	−3,745	−3,024	−1,484	−1,981	1,519
Foreign exchange effects	−54.7	1.5	−28.5	16.0	−8.7	24.8
Net change in cash	−427	4,147	−476	1,481	820	884
Free cash flow	6,962	5,133	4,375	3,634	3,435	3,310

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.