Deutsche Bank analyst: Netease's profitability may continue its momentum in 2026.

Deutsche Bank analyst Leo Chiang stated in a research report that NetEase's profits in 2026 may maintain a steady momentum. Despite its fourth quarter performance falling short of market expectations, the analyst predicts an 8% increase in NetEase's revenue in 2026, with a 10% growth in adjusted net profit. Supporting factors include the continued performance of existing major games, strong deferred revenue in the past two quarters, and ongoing global expansion. At the same time, he mentioned that the highly anticipated "Lost Sea" will be launched in the third quarter, expected to bring additional upside potential. He added that the game developer's AI-driven product innovation and efficiency improvements may further support its long-term growth.