NetEase Inc (NASDAQ:NTES) stock rose 0.49% (As on November 21, 11:51:37 AM UTC-4, Source: Google Finance) after the company reported third quarter earnings that beat analyst estimates, and revenue that fell short of expectations. The company’s flagship title Fantasy Westward Journey Online demonstrated continued strength, achieving four consecutive record peak concurrent player counts during the quarter, reaching a height of 3.58 million players. NetEase also expanded its global portfolio with new releases including Destiny: Rising, which topped iOS download charts in multiple regions. Youdao, the company’s education technology segment, saw revenue increase 3.6% YoY to RMB1.6 billion ($228.8 million), while NetEase Cloud Music revenue decreased 1.8% to RMB2.0 billion ($275.9 million). Innovative businesses and others net revenues were RMB1.4 billion (US$202.1 million), a decrease of 18.9% compared with the same quarter of 2024. Non-GAAP net income attributable to the Company’s shareholders was RMB9.5 billion (US$1.3 billion).

Moreover, the company strengthened the global portfolio and pipeline with new games across a variety of genres, including in Destiny, rising topped the iOS download chart in multiple regions across Western markets with its August 28 global launch, as well as in China with its October 16 domestic launch. ANANTA sparked substantial enthusiasm with its brand-new experience at Tokyo Games Show 2025’s playtesting session. Sword of Justice and Where Winds Meet hit global markets on November 7 and 14, respectively, bringing captivating, distinctive Wuxia worlds to players everywhere. Sea of Remnants is advancing steadily toward its planned 2026 launch. In addition, the company showcased strong long-term operating capabilities with enduring player engagement across well-established titles. Notably, Fantasy Westward Journey Online achieved four successive record peak concurrent player counts since the third quarter, reaching a height of 3.58 million. Multiple established titles strengthened player appeal through innovative gameplay updates and crossover synergy events, including Fantasy Westward Journey mobile game, Identity V, Eggy Party, Sword of Justice and Where Winds Meet.

The Chinese internet and gaming giant posted revenue of RMB28.4 billion ($4.0 billion) for the quarter ended September 30, missing the consensus estimate of RMB29.01 billion despite growing 8.2% YoY. The company reported adjusted earnings per share of RMB14.73 ($2.09 per ADS), slightly above analyst expectations of RMB14.65. NetEase’s gaming division, which accounts for the bulk of its revenue, grew 11.8% YoY to RMB23.3 billion ($3.3 billion). Gross profit for the quarter rose 10.3% YoY to RMB18.2 billion ($2.6 billion), while operating expenses increased 8.9% to RMB10.2 billion ($1.4 billion), primarily due to increased marketing expenditures for online games.