NetEase Inc. ($NTES) Stock Surges on Strong Gaming Revenue in Q1 2025

NetEase Inc. (NASDAQ: NTES) delivered a robust first-quarter performance, with earnings surpassing analyst expectations. Adjusted EPS stood at 3.50 yuan ($0.49), outperforming the consensus estimate of 2.80 yuan. Total revenue climbed 7.4% year-over-year to RMB 28.83 billion ($4 billion), driven by a 12% surge in gaming revenue. Flagship titles and new releases fueled this growth, offsetting declines in non-gaming segments like Youdao and Cloud Music.

The stock closed at $119.58, down 2.59% on the day, but remains up 38% year-to-date. Intraday trading on May 15 saw shares rally nearly 15%, reflecting strong investor sentiment. NetEase’s gaming division continues to be the cornerstone of its financial success, demonstrating resilience in a competitive market.