> **来源：[研报客](https://pc.yanbaoke.cn)** # NetEase (NTES US) 1Q26 Financial Summary and Outlook ## Core Content Overview NetEase (NTES US) reported strong financial results for the first quarter of 2026, with total revenue rising 6% YoY to RMB30.6bn, surpassing the Bloomberg consensus and the analyst's estimate by 4% and 2%, respectively. Non-GAAP net income remained flat YoY at RMB11.3bn but beat expectations by 13% and 4%, driven by a 5.3ppt increase in gross profit margin (GPM) and prudent operating expenses (opex) control. The company's game business was a key driver of performance, with games and related VAS revenue up 7% YoY to RMB25.7bn. Notable successes included the overseas launch of *Where Winds Meet*, which achieved record-high quarterly revenue and ranked second on Steam's global top-selling chart, and *Fantasy Westward Journey Online*, which reached a new peak of 3.9 million concurrent users. *Identity V* also maintained steady user engagement through continuous gameplay system upgrades. Several highly anticipated titles are expected to launch in the second half of 2026 and into FY27, including *Sea of Remnants* (launching in 3Q26E), *ANANTA*, *Floatopia*, *Infinite Borders: Three Kingdoms*, and *Blood Message*. These are anticipated to accelerate revenue growth from 2H26E onwards. In addition to the game business, NetEase's Music and Youdao segments showed steady performance, with Cloud Music revenue increasing 7% YoY to RMB1.98bn and Youdao revenue rising 4% YoY to RMB1.35bn. However, the innovative businesses and others segment declined by 5% YoY to RMB1.55bn due to headwinds in e-commerce and advertising. ## Key Financial Highlights - **Revenue**: RMB30.6bn (1Q26) - **Non-GAAP Net Income**: RMB11.3bn (1Q26) - **Games Revenue**: RMB25.7bn (1Q26), up 7% YoY - **GPM**: 69.4% (1Q26), up 5.3ppt YoY - **Overall OPM**: 41.4% (1Q26), up 5.2ppt YoY - **G&A Expenses**: Down 33% YoY (1Q26) - **Earnings Forecast**: Raised by 3-4% for FY26-28E - **Target Price**: US\$155.0 (down from US\$161.5) ## Earnings Summary (YE 31 Dec) | Year | Revenue (RMB mn) | Gross Margin (%) | Adjusted Net Profit (RMB mn) | EPS (Adjusted) (RMB) | Consensus EPS (RMB) | P/S (x) | P/E (x) | |------|------------------|------------------|-----------------------------|----------------------|--------------------|---------|---------| | FY24A| 105,295 | 62.5 | 33,510.6 | 52.35 | 52.35 | 4.7 | 16.8 | | FY25A| 112,626 | 64.3 | 37,343.7 | 58.83 | 58.83 | 4.4 | 14.6 | | FY26E| 120,522 | 67.0 | 42,567.5 | 66.14 | 62.49 | 4.1 | 12.8 | | FY27E| 129,042 | 67.2 | 46,321.6 | 71.76 | 69.52 | 3.9 | 11.6 | | FY28E| 137,396 | 67.4 | 49,133.5 | 76.12 | 75.47 | 3.6 | 10.9 | ## Analyst Recommendation - **Rating**: BUY (Maintain) - **Target Price**: US\$155.00 - **Previous Target Price**: US\$161.50 - **Up/Downside**: 35.6% - **Current Price**: US\$114.34 ## Shareholding and Stock Data - **Market Cap (US$ mn)**: 73,134.7 - **Avg 3 mths t/o (US$ mn)**: 48.0 - **52w High/Low (US$)**: 159.34 / 109.26 - **Total Issued Shares (mn)**: 639.6 ## Share Performance | Period | Absolute | Relative | |--------|----------|----------| | 1-mth | 0.9% | -5.3% | | 3-mth | -3.4% | -15.9% | | 6-mth | -14.4% | -27.5% | ## SOTP Valuation Breakdown - **Online Games**: US\$137.2 (88.5% of total valuation), based on 15x 2026E EV/EBIT - **Youdao**: US\$0.6 (0.4%), based on 0.7x 2026E EV/revenue - **Cloud Music**: US\$2.2 (1.4%), based on 1.9x 2026E EV/revenue - **Innovative Businesses**: US\$1.2 (0.8%), based on 0.8x 2026E EV/revenue - **Net Cash**: US\$13.9 ## Peer Comparison ### Online Games | Company | Ticker | Price (Local) | EBIT Growth (FY26E) | EV/EBIT (x) | |---------------|-----------|--------------|--------------------|------------| | Tencent | 700 HK | 455.2 | 13% | 13 | | Electronic Arts | EA US | 201.6 | 24% | 20 | | Nintendo | 7974 JP | 7,240.0 | 24% | 18 | | Bandai Namco | 7832 JP | 3,721.0 | (12)% | 11 | | Perfect World | 002624 CH | 14.8 | 97% | 13 | | Average | - | - | - | 14 | ### Education, Online Music, E-commerce - **Education**: New Oriental, TAL Education, Gaotu - **Online Music**: TME, Spotify, Bilibili - **E-commerce**: Alibaba, JD, Pinduoduo, Vipshop ## Financial Summary (Income Statement) | Item | 2023A (RMB mn) | 2024A (RMB mn) | 2025A (RMB mn) | 2026E (RMB mn) | |-----------------------------|----------------|----------------|----------------|----------------| | Revenue | 103,468 | 105,295 | 112,626 | 120,522 | | Gross Profit | 63,063 | 65,807 | 72,402 | 80,751 | | Operating Profit | 27,709 | 29,584 | 35,835 | 43,871 | | Adjusted Net Profit | 32,608 | 33,511 | 37,344 | 42,567 | ## Financial Summary (Balance Sheet) | Item | 2023A (RMB mn) | 2024A (RMB mn) | 2025A (RMB mn) | 2026E (RMB mn) | |-----------------------------|----------------|----------------|----------------|----------------| | Total Assets | 185,925 | 195,992 | 221,415 | 251,603 | | Total Liabilities | 57,841 | 53,497 | 56,311 | 60,095 | | Total Shareholders Equity | 124,286 | 138,686 | 160,296 | 186,017 | ## Cash Flow Summary | Item | 2023A (RMB mn) | 2024A (RMB mn) | 2025A (RMB mn) | 2026E (RMB mn) | |-----------------------------|----------------|----------------|----------------|----------------| | Net Cash from Operations | 35,331 | 39,677 | 50,740 | 44,488 | | Net Cash from Investing | (17,043) | 17,916 | (33,181) | (11,616) | | Net Cash from Financing | (21,467) | (27,336) | (20,160) | (10,883) | ## Valuation Metrics | Metric | 2023A | 2024A | 2025A | 2026E | 2027E | 2028E | |--------------|------|------|------|------|------|------| | P/E (x) | 17.0 | 16.8 | 14.6 | 12.8 | 11.6 | 10.9 | | P/B (x) | 4.0 | 3.6 | 3.1 | 2.7 | 2.3 | 2.0 | ## Analyst Certifications and Disclosures - The analyst certifies that the views expressed in the report reflect personal views and that compensation is not tied to specific views. - No trading in the covered stocks within 30 days prior to the report's release. - No trading for 3 business days after the report's release. - No financial interests in the covered companies. ## CMBIGM Ratings | Rating | Description | |----------------|-------------| | BUY | Potential return of over 15% over next 12 months | | HOLD | Potential return of +15% to -10% over next 12 months | | SELL | Potential loss of over 10% over next 12 months | | NOT RATED | Stock is not rated by CMBIGM | | OUTPERFORM | Industry expected to outperform the relevant broad market benchmark | | MARKET-PERFORM | Industry expected to perform in-line with the relevant broad market benchmark | | UNDERPERFORM | Industry expected to underperform the relevant broad market benchmark |