NetEase (9999) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenues reached RMB 30.1 billion ($4.4B), up 7.9% year-over-year, driven by strong games and related value-added services performance.

• Gross profit margin improved to 70.5% in Q2 2026, reflecting operational efficiency and higher profitability.

• 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.

• Games and related value-added services generated RMB 25 billion ($3.7B) in Q2 2026, with notable launches and updates across key titles.

• Continued innovation and global expansion in both new and established games, with strong community engagement.

Financial highlights

• H1 2026 net revenues were RMB 60.7 billion ($8.9B), up 7.0% year-over-year.

• Q2 2026 gross profit was RMB 21.2 billion ($3.1B), up 17.5% year-over-year.

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

• Q2 2026 basic EPS was $0.32 per share ($1.60–$1.61 per ADS).

• Q2 2026 operating profit was $1.78 billion, with a margin of 40.2%.

Outlook and guidance

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

• Focus on high-quality product investment, leveraging AI to accelerate development and enhance user experience.

• Committed to disciplined execution, creative innovation, and expanding global presence.