EarningsQ2 2026 Earnings Report
MX:9999N Q2 2026 EPS Results
Actual EPS$6.46
Consensus EPS$8.28
Beat/MissMissed by -$1.82
One Year Ago EPS$7.45
MX:9999N Q2 2026 Revenue Results
Actual Revenue$79.81B
Expected Revenue$78.30B
Beat/MissBeat by +$1.51B
YoY Revenue Growth+15.15%
Earnings Announcement Details
QuarterQ2 2026
Date08/20/2026
TimeBefore Open
Conference CallThursday, August 20, 2026
MX:9999N Upcoming Earnings
Netease Inc's next earnings date is estimated for November 12, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized broad revenue growth, margin expansion, strong cash and shareholder returns, and multiple product-level successes (notably in games, Youdao AI advances, Cloud Music engagement, and Yanxuan e-commerce). Offsetting these positives were a small sequential dip in online games revenue, year-over-year earnings pressure from investment losses, some product launch user-experience criticisms (Sea of Remnants), and a modest YoY decline in the innovative/e-commerce segment. Management highlighted active remediation steps, ongoing live-ops strength, AI-enabled development gains and a disciplined capital return policy.Company Guidance
Strong Q2 and H1 Revenue Growth
Total net revenue reached RMB 30.1 billion in Q2 and RMB 60.7 billion for the first half of 2026, representing a 7% year-over-year increase for H1.
Games Business Performance
Games and related VAS generated RMB 25.0 billion in Q2; online games net revenue was RMB 24.5 billion in Q2 (up 10% year-over-year) and RMB 49.5 billion for H1 (up 9% year-over-year).
Improved Gross Margins
Overall gross margin was 70.5% in Q2 (up from 64.7% YoY) and 69.9% for H1. Games gross margin improved to 76.1% in Q2 (from 70.2% YoY); Youdao margin rose to 48.9% (from 43.0% YoY); Cloud Music margin increased to 37.4% (from 36.1% YoY).
Non-GAAP Profitability and Strong Cash Position
Non-GAAP net income attributable to shareholders for Q2 was RMB 7.7 billion; H1 non-GAAP net income was RMB 19.0 billion. Net cash position was RMB 167.5 billion as of June 30, 2026 (up from RMB 163.5 billion at end-2025).
Shareholder Returns
Board approved a Q2 dividend of USD 0.096 per share (USD 0.48 per ADS) and repurchased ~24.8 million ADS under the USD 5 billion program for ~USD 2.3 billion.
Successful Titles and Engagement Milestones
Multiple product highlights: Eggy Party reached 700 million registered users with MAU >100M and RMB 200M in creator rewards; Sword of Justice anniversary update drew >10M active players on launch day and 2-year high concurrent users; Where Winds Meet sustained global growth with Steam reviews >87% and Xbox launch; Marvel Rivals hit #2 on global top-seller and #1 in multiple regions.
Youdao and AI Advances
Youdao launched LLM Confucius 4 with improved reasoning and upgraded translation model with ~80% faster inference; Youdao H1 revenue grew 4% to RMB 2.8 billion, and Q2 revenue was RMB 1.5 billion (up 9% QoQ, +3% YoY).
NetEase Cloud Music Momentum
Cloud Music H1 revenue grew ~3% YoY to RMB 4.0 billion. DAU/MAU ratio remained above 30% (improving YoY and sequentially), membership and engagement metrics rose and content partnerships expanded.
Yanxuan and E-commerce Strength
Yanxuan secured leading positions across key categories in Q2; new products (pet food, home scent) performed well and Youdao smart devices (Dictionary Pen) ranked #1 in category during 618 festival for seventh consecutive year.
MX:9999N Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed