After the market closed today (the 20th), NetEase released its Q2 2026 financial results and half-year report. The financial results show that NetEase’s total revenue for Q2 reached 30.1 billion yuan, of which net revenue from games and related value-added services amounted to 25.0 billion yuan, a 10% increase year-over-year.
In the first half of the year, NetEase reported total revenue of 60.7 billion yuan, up 7% year-over-year; adjusted net income attributable to shareholders was 19.0 billion yuan, down 8.4% year-over-year. Revenue from gaming-related businesses totaled 50.7 billion yuan, up 8.3% year-over-year.
In its earnings report, NetEase highlighted its long-running “Fantasy Westward Journey” series,*Identity V*, *Egg Party*, the mobile version of *Nishuihan*, and *Yan Yun Shiliu Sheng*, all of which delivered strong performance. The gaming segment’s gross profit for the quarter was approximately 19 billion yuan, representing a year-over-year increase of nearly 19%—outpacing revenue growth. The company attributed this to higher revenue shares and lower product costs.
"Sixteen Sounds of Yan Yun" and "Marvel Showdown" continue to expand into the North American and European markets. On the new-title front, "The Forgotten Sea" launched in July, while development is underway for "Infinite" and "Return to Tang." "Return to Tang" is an action-adventure game developed by 24 Entertainment that is set against the backdrop of the Shazhou Uprising during the late Tang Dynasty.
In addition to the major titles mentioned above, NetEase has also been actively exploring the popular “search, tap, and retreat” genre.
China’s first Chinese-style supernatural “search-and-fight” game, *Hidden Shadows*, launched its first round of testing on August 7 and has quickly gained widespread popularity thanks to its unique atmosphere rooted in Eastern folklore.
Just ten days later, on August 17, *Beneath the Mist Sea*—the first “hunt-fight-retreat” mobile game developed by NetEase’s Zhiyu Studio—began its beta testing.The game innovatively allows players to hunt monsters and turn them into magical dishes to gain transformation and combat abilities. With its soothing picture-book art style and design that prioritizes exploration over competition, it opens up a whole new dimension of gameplay.
According to the financial report, revenue growth in Q2 was nearly 10%, but net profit fell by nearly 20%.The financial report attributes this to a net investment (loss) of approximately 2.95 billion yuan for the quarter, compared to a net investment gain of 330 million yuan in the same period last year—a difference of nearly 3.3 billion yuan. Combined with an investment impairment provision of approximately 1.28 billion yuan (compared to approximately 160 million yuan in the same period last year), this essentially wiped out the increase in operating profit.The financial report shows that in the first half of the year, “changes in the fair value of stocks, other investments, and financial instruments” resulted in losses of 3.141 billion yuan, primarily due to unrealized losses on NetEase’s equity investments in companies such as Pinduoduo and Alibaba, valued at market prices.
In addition, NetEase’s effective tax rate rose from 14.7% in the same period last year to 25.5%, resulting in an increase in income tax expense of approximately 900 million yuan year-over-year.
However, there is no need to be overly concerned about NetEase’s profitability, as the aforementioned impairment charges are one-time in nature. Profitability in core businesses such as gaming has actually strengthened; during the reporting period, gross profit increased by 17.5% year-over-year, and operating profit reached approximately 12.1 billion yuan, up 33% year-over-year.
原创文章，作者：游茶妹儿，禁止转载：https://youxichaguan.com/en/archives/219584
