• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Earnings Beat: NetEase, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

    Simply Wall St·05/24/2026 00:01:17
    Listen to the news

    NetEase, Inc. (HKG:9999) just released its latest quarterly results and things are looking bullish. NetEase beat earnings, with revenues hitting CN¥31b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

    Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

    earnings-and-revenue-growth
    SEHK:9999 Earnings and Revenue Growth May 24th 2026

    Taking into account the latest results, the consensus forecast from NetEase's 30 analysts is for revenues of CN¥121.3b in 2026. This reflects a reasonable 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 17% to CN¥12.56. In the lead-up to this report, the analysts had been modelling revenues of CN¥120.7b and earnings per share (EPS) of CN¥11.49 in 2026. So the consensus seems to have become somewhat more optimistic on NetEase's earnings potential following these results.

    Check out our latest analysis for NetEase

    There's been no major changes to the consensus price target of HK$250, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic NetEase analyst has a price target of HK$309 per share, while the most pessimistic values it at HK$143. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

    Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 6.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.7% annually. So although NetEase is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

    The Bottom Line

    The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NetEase's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

    Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for NetEase going out to 2028, and you can see them free on our platform here..

    Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.