Naver Has Record Year Despite Weaker Final Quarter

By Kwanwoo Jun

South Korean internet giant Naver reported weaker fourth-quarter earnings but still delivered record annual results, led by solid growth at its core search-platform and e-commerce businesses.

The company is stepping up its artificial-intelligence push by integrating AI tools--including its homegrown large language model--across its businesses, saying the strategy is opening new revenue opportunities and supporting earnings growth.

Though net profit last year fell 5.8% to 1.820 trillion won, equivalent to $1.24 billion, revenue climbed 12% to a record 12.035 trillion won, and operating profit also reached a new milestone, increasing 12% to 2.208 trillion won, the company said Friday.

The company's search-platform advertising business posted 5.6% revenue growth in 2025. Revenue from its e-commerce business jumped 26% last year, it said.

That came despite a sharp final-quarter earnings miss. Net profit was 164.60 billion won, down 68% from 514.00 billion won a year ago. Analysts had expected 508.26 billion won, according to a FactSet-compiled consensus.

Revenue rose 11% to 3.195 trillion won, and operating profit increased 13% to 610.60 billion won.

Shares in Naver were down 2.8% on Thursday ahead of the earnings release. The stock has risen 6.0% so far this year, underperforming the benchmark Kospi's 23% gain.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

February 05, 2026 18:57 ET (23:57 GMT)