NetEase (NTES.US) announced on Thursday that its second-quarter 2025 revenue increased 9.4% year-over-year to 27.9 billion yuan, compared to 25.5 billion yuan in the same period last year. The performance growth was driven by revenue increases in its core online gaming business and Youdao education segment, offsetting declines in the online music business.

The company's gaming and related value-added services revenue rose 13.7% year-over-year to 22.8 billion yuan, while Youdao revenue grew 7.2% to 1.4 billion yuan. However, online music business revenue declined 3.5% year-over-year to 2 billion yuan. Quarterly profit increased 26% from 6.8 billion yuan in the prior year period to 8.6 billion yuan.

Following the earnings release, NetEase shares fell 3.9% on Thursday. The stock has gained 45% year-to-date.