NetEase (NASDAQ: NTES) shares surged 11.80% in early trading on Thursday following the release of its first-quarter 2025 financial results, which significantly exceeded analyst expectations. The Chinese internet and gaming giant demonstrated robust growth across key metrics, particularly in its core gaming segment.

The company reported adjusted earnings per share of RMB17.51 ($2.41), substantially surpassing the consensus estimate of RMB13.89. Revenue for the quarter climbed 7.4% year-over-year to reach RMB28.8 billion ($4.0 billion), outpacing analysts' projections of RMB28.51 billion. NetEase's core games and related value-added services segment was a standout performer, with revenue increasing by 12.1% to RMB24.0 billion ($3.3 billion) compared to the same period last year.

CEO William Ding attributed the strong performance to ongoing innovation and the success of both new and established game titles. "We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles that strengthen our reach across genres and resonate with players around the world," Ding stated. The company's focus on long-term operations and strategic collaborations appears to be paying off, as evidenced by the strong performances of games like Identity V and newly launched titles such as Where Winds Meet and Marvel Rivals. Additionally, NetEase declared a dividend of $0.1350 per share for the second quarter, further boosting investor confidence in the company's financial health and future prospects.