NetEase appears to be undergoing a structural profitability transformation, with gross margins expanding from 60.8% to 70.5% and operating margins doubling to 40.2% over the last ten quarters, supported by an asset-light model and disciplined SG&A.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
NetEase's financial profile is characterized by a significant step-change in profitability, with gross margin expanding to 70.5% and operating margin reaching 40.2% in 2026Q2, driven by effective fixed-cost discipline as SG&A remained stable between $3.7B and $5.6B despite revenue growth.
NetEase is a top developer and publisher of video games across multiple genres and platforms, with a strong presence in China and globally.
The company operates a wide range of popular and long-running mobile and PC games, supported by cross-platform login capabilities.
Analysts project a bull case 10-year CAGR of +10% if NetEase successfully expands into broader entertainment and strengthens its international presence.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 20, 2026 | $1.77-23.7% vs $2.32 | $4.4B+2.3% vs $4.3B |
Q2 2026 May 21, 2026 | $2.53+15.5% vs $2.19 | $4.4B+4.3% vs $4.3B |
Q1 2026 Feb 11, 2026 | $1.57-22.7% vs $2.03 | $3.9B-4.1% vs $4.1B |
Q4 2025 Nov 20, 2025 | $2.07-0.5% vs $2.08 | $4.0B-1.3% vs $4.0B |
HANGZHOU, China, Nov. 5, 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 third quarter 2026 financial results on Thursday, November 19, 2026, before the open of the U.S. markets. The earnings teleconference call with simultaneous webcast will take place at 5:00 a.m.
HONG KONG, Nov. 5, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced that it will report financial results for the 2026 third quarter on Thursday, November 19, 2026, before the open of the U.S. markets. The earnings teleconference call with simultaneous webcast will take place at 7:00 a.m.
I present 10 high-quality dividend growth stocks with strong total return potential, screened for robust fundamentals and attractive valuations as of November 2026. Key criteria include Investment Score ≥70, future return potential ≥12%, consistent 7%+ dividend growth, and payout ratios below 100%. Top picks such as RMD, NTES, and NVDA offer compelling upside, with future return estimates driven by EPS growth, yield, and potential valuation mean reversion.
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Benchmark NTES against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for NetEase, Inc. (NTES)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $129.45 | $82.64B | 17.12 | 6.96% | 27.89% | 19.48% | 2.41% | |
| $81.87 | $27.85B | -50.94 | -3.04% | -2.9% | -1.61% | — | |
| $14.66 | $6.15B | 28.90 | 13.1% | 4.9% | 9.92% | — | |
| $2.19 | $501.3M | -30.35 | 6.96% | -1.6% | -2.29% | 72.09% | |
| $3.92 | $118.3M | -24.61 | -10.58% | -0.89% | -1.63% | 100% | |
| $214.87 | $40.18B | -124.87 | 18.16% | -4.79% | -9.12% | — |
NetEase, Inc. (NTES) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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NetEase, Inc. (NTES) stock FAQ — growth, dividends, profitability & financials explained
NetEase, Inc. (NTES) reported $116.52B in revenue over the trailing twelve months. Revenue was $112.63B in fiscal year 2025. That is 721021% more than the $15.6M of fiscal year 1999.
NetEase, Inc. (NTES) grew revenue by 6.2% over the trailing twelve months, compared with the twelve months before.
Yes. NetEase, Inc. (NTES) earned $32.49B in net income over the trailing twelve months (a 27.9% net margin).
Yes. NetEase, Inc. (NTES) pays a dividend that yields 2.41% at the current price, a moderate yield.
NetEase, Inc. (NTES) had a return on equity (ROE) of 19.5% over the trailing twelve months. That is above the market's typical 10-15%.
NetEase, Inc. (NTES) generated $49.91B in free cash flow over the trailing twelve months.
