Ge Long Hui·2026-02-12 08:28Core Viewpoint - NetEase's Q4 performance showed a 3% year-on-year revenue growth to 27.5 billion yuan, which was 4% lower than market consensus expectations, primarily due to slower-than-expected growth in gaming revenue and extended revenue recognition periods [1] Group 1: Financial Performance - Total revenue for NetEase increased by 3% year-on-year to 27.5 billion yuan, falling short of market expectations by 4% [1] - Operating profit rose by 6% year-on-year to 8.3 billion yuan, which was also 6% below consensus estimates [1] Group 2: Future Outlook - The company remains optimistic about revenue growth prospects for the current year, supported by a strong 34% year-on-year increase in contract liabilities at the end of last year [1] - Several major new products are expected to launch this year, including "The Sea of Forgotten" [1] Group 3: Valuation Adjustments - The revenue forecasts for the next two years have been slightly reduced by 1% to 2% due to the extended revenue recognition period [1] - Based on a sum-of-the-parts (SOTP) valuation, the target price for NetEase's U.S. stock has been slightly lowered from $164 to $161.5, while maintaining a "Buy" rating [1]