NetEase Inc ADR

NTES: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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NetEase Earnings: Record Game Margins Confirm Long-Run Upside; Maintain USD 200 Fair Value Estimate

Ivan Su

Aug 21, 2026

NetEase's second-quarter revenue rose 8%, with games up 10%. The gaming business' gross margin reached a record high, on a mix shift toward self-developed PC titles and lower channel fees. Operating income grew 33%, but net profit declined on investment losses from PDD and Alibaba stock holdings.

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NetEase Inc ADR

NetEase Earnings: Record Game Margins Confirm Long-Run Upside; Maintain USD 200 Fair Value Estimate

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