Gamers Embrace NetEase's Latest Releases, But Wall Street Remains Skeptical
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Source: Benzinga
NetEase Financial Performance: NetEase reported a fiscal third-quarter revenue of $3.98 billion, an 8.2% year-on-year increase, but fell short of the analyst consensus estimate of $4.11 billion. The adjusted EPADS of $2.09 exceeded expectations of $1.88.
Gaming Revenue Growth: The company's gaming and related services revenue rose by 11.8% to $3.28 billion, with a gross margin increase to 69.3%, driven by successful self-developed games and licensed titles.
Youdao and NetEase Cloud Music Results: Youdao's revenue increased by 3.6% to $228.76 million, while NetEase Cloud Music's revenue decreased by 1.8% to $275.89 million, although its gross margin improved.
Shareholder Actions and Future Plans: NetEase's board approved a dividend of 57 cents per ADS and extended its share repurchase program for an additional 36 months. CEO William Ding highlighted ongoing innovation and global collaboration to enhance player value.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DAO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DAO
About DAO
Youdao Inc is a holding company principally engaged in the intelligent learning business, providing a variety of learning content, applications and solutions. The Company primarily operates its businesses through three segments. Learning Services segment mainly provides digital content services, science, technology, engineering, the arts and mathematics (STEAM) courses, and adult and vocational courses through the Youdao Lingshi, Youdao Literature, Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC and others. Smart Devices segment mainly develops and offers smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. The Company also provides education digitalization solutions, including Youdao Smart Learning Terminal, Youdao Smart Cloud, and Youdao Sports. Online Marketing Services segment mainly offers online marketing services, including performance-based advertising services and brand advertising services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NetEase to Report Q4 and FY 2025 Earnings on February 11, 2026
- Earnings Announcement: NetEase will report its Q4 and FY 2025 financial results on February 11, 2026, before U.S. market open, which may influence investor sentiment.
- Conference Call Details: Following the earnings release, management will host a conference call at 7:00 a.m. ET (8:00 p.m. Beijing/Hong Kong Time) to discuss results and answer questions, enhancing transparency.
- Participation Instructions: Interested investors can join the call by dialing 1-914-202-3258 and providing conference ID: 10052758, ensuring they stay updated on the latest company developments.
- Replay Availability: A replay of the call will be accessible by dialing 1-855-883-1031 and entering PIN: 10052758, available until February 18, 2026, allowing those unable to attend live to catch up on the discussion.
Continue Reading
Youdao to Report Q4 and FY 2025 Results on February 11, 2026
- Earnings Report Schedule: Youdao, Inc. will release its Q4 and FY 2025 financial results on February 11, 2026, before the U.S. market opens, which may influence investor confidence.
- Conference Call Details: Following the earnings release, Youdao's management will hold a conference call at 5:00 a.m. ET to discuss the financial results and answer investor questions, enhancing transparency.
- Webcast Availability: The conference call will be available via live and archived webcast on the company's investor relations website, ensuring investors can access relevant information at any time, thereby improving information dissemination efficiency.
- Company Background: Founded in 2006, Youdao specializes in AI applications, primarily offering learning services, online marketing services, and smart devices, demonstrating its strategic positioning in the education and advertising sectors.
Continue Reading