NTES
NetEase, Inc.
NTES's fundamentals are strong: it turned 43% of its revenue into free cash flow and its operating margin rose 4 points to 35%. Its PE isn't a useful guide right now because of how its recent earnings were reported.
NTES Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Strong | |
| Strong |
NTES's profitability, cash flow and balance sheet are currently healthy, and its revenue is stable.
NTES PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 15x | $116 | -5.6% |
| Current | 16x | $123 | — |
| Fair | 19x | $140 | +14% |
| Expensive | 29x | $220 | +79% |
Historical ranges are pointers, not guarantees.
NTES's PE is 16x, but its earnings don't support one, so it isn't a reliable read right now.
NTES Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for NTES, with profitability improving.
NTES Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $7.53 | -5.6% |
| Q1 2026 | $7.92 | +5% |
| Q4 2025 | $7.84 | +14% |
| Q3 2025 | $8.46 | +33% |
| Q2 2025 | $7.98 | +20% |
| Q1 2025 | $7.54 | +7.9% |
| Q4 2024 | $6.90 | +1.8% |
| Q3 2024 | $6.36 | +2.9% |
NTES earned $7.53 per share over the past year, down 5.6% from the year before.
NTES Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $4.5B | +7.6% |
| Q1 2026 | $4.6B | +6.1% |
| Q4 2025 | $4.1B | +3% |
| Q3 2025 | $4.3B | +8.2% |
| Q2 2025 | $4.2B | +9.4% |
| Q1 2025 | $4.3B | +7.4% |
| Q4 2024 | $4B | -1.4% |
| Q3 2024 | $3.9B | -3.9% |
NTES's revenue has grown year over year for six quarters in a row: $4.5B last quarter, up 7.6% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 40% | +7.7 points |
| Q1 2026 | 41% | +5.1 points |
| Q4 2025 | 30% | +1 points |
| Q3 2025 | 28% | +1 points |
| Q2 2025 | 32% | +5.1 points |
| Q1 2025 | 36% | +7.8 points |
| Q4 2024 | 29% | +3.9 points |
| Q3 2024 | 27% | -0.4 points |
NTES's operating margin was 40% last quarter, up 7.7 points from the same quarter a year ago, near the top of its range since 2019.
NTES Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $1.5B | -3.7% |
| Q1 2026 | $2B | +16% |
| Q4 2025 | $2.2B | +14% |
| Q3 2025 | $1.9B | +25% |
| Q2 2025 | $1.6B | +74% |
| Q1 2025 | $1.7B | +27% |
| Q4 2024 | $1.9B | +12% |
| Q3 2024 | $1.5B | +18% |
NTES's free cash flow has been positive every quarter for seven years: $7.5B over the past year, up 13% from the year before.
NTES Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.2% | -1.1M shares |
| 1 year | +0.2% | +1.4M shares |
| 3 years | -0.8% | -5.5M shares |
| 5 years | -4.9% | -32.9M shares |
| Available history | -1.4% | -9M shares |
NTES has 644M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | $268.4M |
| Q1 2026 | $197.2M |
| Q4 2025 | $2.4M |
| Q3 2025 | $5.3M |
| Q2 2025 | $53.4M |
| Q1 2025 | $45.6M |
| Q4 2024 | $239.4M |
| Q3 2024 | $599.4M |
NTES spent $473M buying back its own shares over the past year, down 50% from the year before.
NTES Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | -0.3x | Net Cash |
| Q1 2026 | -0.9x | Net Cash |
| Q4 2025 | -1.1x | Net Cash |
| Q3 2025 | -0.5x | Net Cash |
| Q2 2025 | -1.0x | Net Cash |
| Q1 2025 | -0.8x | Net Cash |
| Q4 2024 | -1.0x | Net Cash |
| Q3 2024 | -0.3x | Net Cash |
NTES has more cash than debt.
NTES Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 50.3 | Neutral |
| Stochastic | 49.8 | Neutral |
NTES's weekly RSI is 50 (neutral) and its Stochastic is 50 (neutral).
NTES PE vs Technology Sector
| Metric | NTES | Sector median | Relative |
|---|---|---|---|
| PE | 16x | 28x | 42% below |
| PE % | 26 | 35 | 9 pts below |
NTES is trading at 16x earnings, a 42% discount to the Technology sector's median of 28x, though its earnings don't support one.
NTES Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $120.9 | 1.4% above |
| 20 week MA | $123.3 | 0.5% below |
| 50 week MA | $123.5 | 0.7% below |
| 100 week MA | $122.1 | 0.5% above |
| 200 week MA | $108.4 | 13% above |
NTES's trend is mixed: it's above three of its five weekly moving averages, and 13% above its 200-week average.
NTES Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $61.2 | $92.7 | +51% |
| 2021 | $92.7 | $97.8 | +5.6% |
| 2022 | $97.8 | $71.1 | -27% |
| 2023 | $71.1 | $93.2 | +31% |
| 2024 | $93.2 | $91.5 | -1.8% |
| 2025 | $91.5 | $138.1 | +51% |
| 2026 YTD | $138.1 | $122.6 | -11% |
NTES has finished higher in four of the last six years, two of them by more than 50%. It's down 11% so far in 2026.