NetEase (9999) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 reached RMB 30.1 billion ($4.4B), up 7.9% year-over-year, driven by strong games business and global expansion.

• H1 2026 net revenues were RMB 60.7 billion ($8.9B), up 7.0% year-over-year, with robust growth in self-developed games and online services.

• Gross profit margin improved to 70.5% in Q2 2026, with gross profit of RMB 21.2 billion ($3.1B); H1 gross profit was RMB 42.4 billion ($6.3B).

• Net income attributable to shareholders for Q2 2026 was RMB 7.0 billion ($1.0B), down year-over-year due to investment losses and higher costs; H1 net income was RMB 17.7 billion ($2.6B).

• Continued innovation in gaming, AI, music, and e-commerce, with notable launches and international expansion.

Financial highlights

• Games and related value-added services generated RMB 25.0 billion ($3.7B) in Q2 2026, up 9.7% year-over-year; H1 2026 revenue was RMB 50.7 billion ($7.5B).

• Youdao revenue grew to RMB 2.8 billion ($414.9M) in H1 2026; Q2 revenue was RMB 1.5 billion ($216.2M).

• NetEase Cloud Music revenue increased to RMB 4.0 billion ($583.4M) in H1 2026; Q2 revenue was RMB 2.0 billion ($291.4M).

• Innovative businesses and others posted RMB 3.2 billion ($469.9M) in H1 2026; Q2 revenue was RMB 1.6 billion ($241.6M).

• Non-GAAP net income for Q2 2026 was RMB 7.7 billion ($1.1B); for H1 2026, RMB 19.0 billion ($2.8B).

Outlook and guidance

• Confident in long-term potential of new titles like Sea of Remnants and Ananta, with ongoing optimizations and unique gameplay.

• Focus on high-quality product investment, leveraging AI, and disciplined execution to drive innovation and global expansion.

• Management expects current cash resources to be sufficient for at least the next 12 months, supporting flexibility for investments.