NetEase (NASDAQ: NTES) stock fell after reporting fiscal second-quarter results. Quarterly revenue rose 9.4% to $3.89 billion, surpassing analyst estimates. Adjusted EPADS of $2.07 also beat expectations. Games and related services revenue increased by 13.7% to $3.18 billion, with gross margin rising to 64.7%.

Youdao (NYSE: DAO) saw revenue rise by 7.2% to $197.88 million, but gross margin declined to 43.0%. NetEase Cloud Music’s revenue dropped 3.5% to $274.8 million, while innovative businesses revenue decreased by 17.8% to $237.2 million. As of June 30, NetEase held $19.8 billion in cash.

The board approved a dividend of 57 cents per ADS for Q2 2025. NetEase stock has gained over 51% year-to-date, trading down by 4.17% to $129.28. The company’s online gaming business remains strong despite challenges.

Read more at Yahoo Finance: NetEase’s Gaming Momentum Is Strong, But Investors Wary Of Slumping Units