Benchmark reiterated a Buy rating on NetEase Inc stock with a price target of $158 on May 22, following the company's strong first-quarter 2026 results. Revenue increased 6.1% year-over-year to $4.4 billion, and non-GAAP basic net income per share rose to $0.51 from $0.32 in the previous quarter. The brokerage raised its margin assumptions for fiscal 2026 and 2027, citing declining channel costs, improved operating leverage from long-lived franchises, and a higher mix of cross-platform titles. Benchmark also noted that NetEase is well-positioned for AI-driven industry changes, integrating AI tools into development and gameplay to boost productivity and innovation, while continuing its metaverse efforts through platforms like Yaotai and AI-driven experiences from its games division.
NetEase IncBenchmark reiterated Buy rating with $158 PT after strong Q1 results, raised margin assumptions.