According to the Zhitong Finance App, NetEase (09999) announced results for the second quarter of 2026. Net revenue was RMB 31 billion (US$4.4 billion), an increase of 7.9% over the previous year. Gross profit was RMB 212 billion (US$3.1 billion), up 17.5% year over year. Net profit attributable to the company's shareholders was RMB 7 billion (US$1 billion). Net profit attributable to the company's shareholders under non-GAAP was RMB 7.7 billion (US$1.1 billion). Among them, net revenue from games and related value-added services was RMB 25 billion (US$3.7 billion), up 9.7% year on year; Youdao's net revenue was RMB 1.5 billion (US$216.2 million), up 3.5% year on year.
In the first half of 2026, net revenue was RMB 60.7 billion (US$8.9 billion), an increase of 7.0% year over year. Gross profit was RMB 42.4 billion (US$6.3 billion), up 16.2% year over year. Net profit attributable to shareholders of the company was RMB 17.7 billion (US$2.6 billion), and net profit attributable to shareholders of the company was RMB 19 billion (US$2.8 billion) under non-GAAP. Among them, net revenue from games and related value-added services was RMB 50.7 billion (US$7.5 billion), up 8.3% year on year; Youdao's net revenue was RMB 2.8 billion (414.9 million US dollars), up 3.6% year on year; net revenue of NetEase Cloud Music was RMB 4 billion (583.4 million US dollars), up 3.4% year on year.
The “Dream Journey to the West” series, “The Fifth Personality”, “Egg Party”, “Against the Cold” mobile game, and “The Sixteen Sounds of Yan Yun” continued to perform well thanks to rich content updates, gameplay innovation, and diverse community operations. Thanks to solid long-term operational capabilities, NetEase is steadily advancing the globalization process and increasing player activity. For example, “16 Voices of Yan Yun” and “Marvel Clash” relied on new content and community-centered operating initiatives to further expand various markets such as North America and Europe.
Regarding new game products, “Sea of Oblivion” was launched in the Chinese market in July 2026. Research and development work for “Infinity” and “Guitang” is being carried out in an orderly manner. The product reserves are getting richer, and the categories, gameplay, and markets are becoming more diverse.
You Dao is deeply involved in AI native strategies and deepens the innovative application of AI within the ecosystem. In the second quarter, Youdao launched the “Confucius 4” (Confucius 4) model to achieve industry-leading mathematical reasoning capabilities at lower inference costs than before. In addition, its AI agent capabilities have been improved, helping it evolve to independently perform complex office and study tasks.
NetEase Cloud Music continues to improve its music-centered ecosystem, further enhancing community participation by cultivating unique communities and enriching its differentiated content supply around original music. At the same time, the number of subscription members continues to grow, driving the commercialization process centered on music.
“Our steady performance in the first half of 2026 fully demonstrated the undiminished enthusiasm of players for new NetEase games and classic products, and demonstrated our ability to create game content with distinctive features, fresh experiences and lasting appeal,” said Mr. Ding Lei, CEO and Director of NetEase. “While strengthening long-term operational capabilities and new product reserves, we will further focus on original gameplay, cutting-edge technology, and global market expansion to pave the way for the company's sustainable growth.”
“Looking forward to the future, we will continue to create original content that leads industry trends, cultivate the Evergreen Gaming brand, and build a vibrant and sticky player community. With steady and efficient execution and an expanding global presence, we are committed to breaking creative boundaries, creating excellent gaming experiences, and creating long-term value for players, partners, and shareholders.” Mr. Ding Lei concluded.