Q2 26 EPS Adjusted
$1.77
MISS 88.61%
Est. $15.54
Q2 26 Revenue
$4.44B
MISS 84.95%
Est. $29.48B
vs S&P Since Q2 26
-0.3%
TRAILING MARKET
NTES +0.1% vs S&P +0.4%
Market Reaction
Did NTES Beat Earnings? Q2 2026 Results
NetEase delivered a sharp disappointment in Q2 2026, with both earnings and revenue falling well short of Wall Street expectations. The Chinese gaming giant posted adjusted non-GAAP EPS of $1.77, missing the consensus estimate of $15.54 by 88.61%, wh… Read more NetEase delivered a sharp disappointment in Q2 2026, with both earnings and revenue falling well short of Wall Street expectations. The Chinese gaming giant posted adjusted non-GAAP EPS of $1.77, missing the consensus estimate of $15.54 by 88.61%, while net revenues of $4.44 billion trailed the $29.48 billion consensus by 84.95%, reflecting a 84.1% year-over-year decline. The most material drag came from a significant swing in other income and expenses, including declines in the fair value of equity security investments and impairment provisions, which weighed heavily on net income even as operating profit showed underlying strength. A jump in the effective tax rate to 25.5%, up from 14.7% in Q2 2025, compounded the pressure. For investors watching the stock closely, the quarter adds uncertainty heading into a pipeline-heavy second half, with Sea of Remnants already launched in China and Ananta and Blood Message still in development as NetEase pushes deeper into global markets.
Key Takeaways
- • Higher net revenues from self-developed games including Fantasy Westward Journey franchise and Where Winds Meet drove YoY games growth
- • Lower revenue-sharing and product costs drove significant gross margin expansion
- • NetEase Cloud Music subscription membership growth drove online music revenue
- • Youdao learning services growth contributed to segment revenue increase
NTES Forward Guidance & Outlook
NetEase plans to remain committed to creating original content that shapes industry trends, building evergreen franchises, and cultivating vibrant communities. The company is sharpening focus on original gameplay, cutting-edge technology, and deeper global reach to support enduring growth. Sea of Remnants launched in China in July 2026, while Ananta and Blood Message remain in development, strengthening the pipeline across diverse genres and markets. Where Winds Meet and Marvel Rivals are expanding internationally in North America and Europe.
NTES YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
NTES Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our robust performance in the first half of 2026 reflects players' growing enthusiasm for both our newly launched and established games, underscoring our ability to create distinctive and refreshing experiences with lasting appeal. As we continue to strengthen both our live game operations and new title pipeline, we are sharpening our focus on original gameplay, cutting-edge technology and deeper global reach to support our enduring growth.”
— William Ding, Q2 2026 Earnings Press Release
NTES Earnings Trends
NTES vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NTES EPS Trend
Earnings per share: estimate vs actual
NTES Revenue Trend
Quarterly revenue: estimate vs actual
NTES Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $15.54 | $1.77 | -88.61% | $4.44B | -84.95% |
| Q1 26 MISS | $15.39 | $2.53 | -83.56% | $4.43B | -85.04% |
| Q4 25 MISS FY | $14.12 | $1.58 | -88.81% | $27.55B | -4.07% |
| FY Full Year | — | $8.38 | — | $112.63B | — |
| Q3 25 MISS | $14.83 | $2.09 | -85.91% | $3.98B | -86.34% |
| Q2 25 MISS | $15.06 | $2.09 | -86.12% | $3.89B | -86.38% |