NetEase (NTES.US) gained 3.07% in pre-market trading, reaching $131.22. Citigroup issued a research report stating that NetEase will announce its Q2 2025 financial results in mid-August, with performance expected to meet expectations. The growth is primarily driven by the steady performance of games including "Fantasy Westward Journey" mobile game, "Justice Online," and "Where Winds Meet," along with deferred revenue recognition from the first quarter, which helps offset seasonal factors.

The firm slightly raised NetEase's US stock target price from $156 to $157, maintaining a "buy" rating, citing optimism about its earnings resilience, strong cash flow, and stable dividend payments. Citigroup estimates NetEase's Q2 total revenue will grow 11% year-over-year to 28.3 billion yuan (RMB), with Non-GAAP net profit expected to reach 9.46 billion yuan, compared to market forecasts of 28.4 billion yuan and 9.66 billion yuan respectively. Online gaming revenue is projected to grow 15.2% year-over-year to 23.1 billion yuan.

Looking ahead to the second half of the year, with key new titles such as "Diablo IV" and "Destiny Rising" entering testing or launch phases, Citigroup expects gaming revenue momentum to remain stable. The firm forecasts NetEase's Q3 revenue will grow 10.6% year-over-year to 28.98 billion yuan, with Non-GAAP net profit reaching 9.5 billion yuan.