NetEase Reports Strong Financial Results for Q4 and FY 2025 Amid Strategic AI Integration

NetEase Financial Report for Q4 and FY 2025

On February 11, 2026, NetEase, Inc. (NASDAQ: NTES and HKEX: 9999), a premier internet and gaming services provider based in Hangzhou, China, released its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025. This report highlights the company’s financial growth, operational successes, and innovative strategies.

Q4 2025 Financial Highlights

In the fourth quarter of 2025, NetEase achieved net revenues of RMB 27.5 billion (approximately USD 3.9 billion), marking a 3.0% increase compared to the same quarter in 2024. Significant contributors to this growth were the game's segment, which earned RMB 22.0 billion (USD 3.1 billion), an increase of 3.4% year-over-year, and Youdao's revenue, which surged to RMB 1.6 billion (USD 223.7 million), reflecting a remarkable 16.8% growth.

The company reported a gross profit of RMB 17.7 billion (USD 2.5 billion) for the quarter, up 8.7% from the previous year. However, total operating expenses rose by 10.9% to RMB 9.4 billion (USD 1.3 billion). Net income attributed to shareholders reached RMB 6.2 billion (USD 892.6 million), translating to a basic net income per share of USD 0.28.

Operational Successes

NetEase’s operational strategy continues to bear fruit, as evidenced by its impressive performance in engaging gamers across established franchises. Notable titles like Fantasy Westward Journey, Identity V, Eggy Party, and others maintained strong player bases, illustrating the resilience of NetEase’s long-term operations.

The portfolio was further enhanced with the global rollout of 'Sword of Justice' and the increasing popularity of 'Where Winds Meet,' which boasts over 80 million cumulative players. The strong performance of Blizzard titles in China also played a major role, driving record-high annual revenues.

CEO William Ding commented, “We concluded 2025 with another healthy quarter, reflecting the durability of our long-term game operations and the growing impact of our global titles.”

This strategic success is underpinned by a newly developed comprehensive AI integration across all phases of game development, which has significantly optimized production efficiency and enriched player interaction.

Looking Forward

Looking ahead, NetEase plans to focus on enhancing player experience across its business spectrum while deepening collaborations with global partners. The company aims to continue leveraging its AI advancements to foster innovation across its franchises and ultimately improve shareholder value.

Summary of Financial Data for FY 2025

For the fiscal year 2025, NetEase reported total net revenues of RMB 112.6 billion (USD 16.1 billion), a notable increase over 2024. Net revenues from games and related services alone were RMB 92.1 billion (USD 13.2 billion), accounting for approximately 97.3% of total revenues. In contrast, revenues from innovative businesses slumped to RMB 6.8 billion (USD 973.6 million).

The operating expenses for the year reached RMB 36.6 billion (USD 5.2 billion). Nevertheless, NetEase’s net income attributable to shareholders for 2025 increased to RMB 33.8 billion (USD 4.8 billion), with a basic net income of USD 1.52 per share.

Amid rising operational costs due to elevated marketing and R&D expenses, NetEase still exhibits a strong cash position, totaling RMB 163.5 billion (USD 23.4 billion) in cash and cash equivalents by the end of the fiscal year.

The robust financial results not only underscore NetEase’s resilience in the competitive gaming market but also highlight its commitment to innovation and expansion through strategic use of AI technology.

Conclusion

In conclusion, as NetEase moves into 2026, its strategic initiatives and solid financial performance reflect a promising outlook for continued growth. The integration of AI into game development and operations will likely be a focal point as the company strives to elevate user engagement and expand its global influence. With a firm commitment to delivering high-quality content and enriching gaming experiences, NetEase remains a formidable player in the online service sector.