EarningsQ2 2026 Earnings Report
MX:NTESN Q2 2026 EPS Results
Actual EPS$32.59
Consensus EPS$42.19
Beat/MissMissed by -$9.60
One Year Ago EPS$40.15
MX:NTESN Q2 2026 Revenue Results
Actual Revenue$80.40B
Expected Revenue$79.78B
Beat/MissBeat by +$622.36M
YoY Revenue Growth+14.70%
Earnings Announcement Details
QuarterQ2 2026
Date08/20/2026
TimeBefore Open
Conference CallThursday, August 20, 2026
MX:NTESN Upcoming Earnings
NetEase's next earnings date is estimated for November 12, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:NTESN Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive operational and financial picture: topline growth (7% YoY for 1H), strong game revenue performance (games/VAS +10% YoY in Q2), improving gross margins across core segments, healthy cash position and active shareholder returns. Product momentum across multiple franchises and advancements in AI (Youdao) and Cloud Music engagement reinforce the growth narrative. Offsetting factors include non-GAAP profit declines driven by investment losses, a modest QoQ decline in online games revenue, year-over-year weakness in the innovative/e-commerce segment, and product feedback that required early-stage optimizations for a recent release. Overall, positives (revenue growth, margin expansion, strong product engagement, cash and buybacks/dividend) outweigh the negatives (profit softness, select revenue softness and product adjustments).Company Guidance
Total Revenue Growth
Total net revenue for 1H 2026 reached RMB 60.7 billion (USD 8.9 billion), up 7% year-over-year; Q2 2026 total revenue was RMB 30.1 billion (USD 4.4 billion).
Games Revenue Strength
Games and related VAS generated strong results: Q2 net revenues for games and VAS were RMB 25.0 billion (up 10% year-over-year). Online games net revenue for 1H was RMB 49.5 billion (up 9% YoY); Q2 online games net revenue was RMB 24.5 billion (up 10% YoY, down 2% quarter-over-quarter).
Improved Gross Margins
Overall gross profit margin for 1H was 69.9%; Q2 gross margin improved to 70.5% (from 64.7% prior year). Games gross margin rose to 76.1% (vs. 70.2% YoY). Youdao gross margin improved to 48.9% (vs. 43.0% YoY). Cloud Music gross margin increased to 37.4% (vs. 36.1% YoY).
Profitability and Cash Position
Q2 non-GAAP net income attributable to shareholders was RMB 7.7 billion (USD 1.1 billion). 1H non-GAAP net income was RMB 19.0 billion (USD 2.8 billion). Net cash position as of June 30, 2026 was RMB 167.5 billion, up from RMB 163.5 billion at end of 2025.
Shareholder Returns
Board approved dividend of USD 0.096 per share (USD 0.48 per ADS) for Q2. Under the USD 5 billion repurchase program, ~24.8 million ADS were repurchased as of June 30, 2026 for ~USD 2.3 billion.
Successful Titles and Engagement Metrics
Multiple titles showed standout engagement: Sword of Justice anniversary update saw active players exceed 10 million on launch day and concurrent users at a 2-year high; Eggy Party reached 700 million registered users with MAU above 100 million and peak daily active users at a multiyear high; Where Winds Meet maintained >87% positive Steam reviews and ranked top-seller positions; Marvel Rivals reached #2 global top-seller and #1 in multiple regions including the U.S.
Product and IP Momentum
Ongoing product innovation and launches: Sea of Remnants released in China (novel IP & gameplay); expansions/updates across franchises (Fantasy Westward Journey, NARAKA, Infinite Borders) refreshed experiences and drove engagement; new titles Ananta and Blood Message progressing with strong pre-release interest (Blood Message trailer ~40 million views).
Youdao AI & Product Improvements
Youdao launched large language model Confucius 4 and upgraded translation model with ~80% faster inference; learning services and AI-driven subscriptions showed momentum and improved advertising efficiency via a second-generation AI ad placement optimizer; Youdao pen devices (Dictionary Pen X8) ranked #1 in category during 618 for 7th consecutive year.
NetEase Cloud Music User Metrics
Cloud Music grew engagement: DAU/MAU ratio remained above 30% and improved YoY and sequentially; average daily mobile listening time rose; membership subscriptions expanded and retention/renewal rates improved, supporting music-oriented monetization.
MX:NTESN 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