NetEase shares dropped more than 4% in premarket trading after reporting fourth-quarter results that missed expectations on both earnings and revenue. The Chinese tech company posted EPS of RMB10.95, below the consensus estimate of RMB14.12, while revenue reached RMB27.55 billion, falling short of the RMB28.71 billion analysts expected.

Games and related services generated RMB22.0 billion ($3.1 billion), representing a 3.4% year-over-year increase. CEO William Ding highlighted the growing impact of global titles and AI's role in improving production efficiency. NetEase Cloud Music reported revenue of RMB2.0 billion ($281.5 million), up 4.7% from the previous year, while innovative businesses segment declined 10.4% to RMB2.0 billion.

Jefferies analysts noted the revenue came in 4.3% below consensus but aligned with their estimates. The company extended its share repurchase program of up to $5 billion for an additional 36 months through January 9, 2029, signaling continued confidence in its financial position despite the earnings miss.