NetEase (NTES) Q1 2026 Earnings
Reported May 21, 2026 at 6:03 AM ET · SEC Source
Q1 26 EPS
$2.53
MISS 83.56%
Est. $15.39
Q1 26 Revenue
$4.43B
MISS 85.04%
Est. $29.65B
vs S&P Since Q1 26
+16.9%
BEATING MARKET
NTES +17.3% vs S&P +0.4%
Market Reaction
Did NTES Beat Earnings? Q1 2026 Results
NetEase delivered a sharply disappointing first quarter for fiscal 2026, posting non-GAAP EPS of $2.53 against a consensus estimate of $15.39, a miss of 83.56%, while revenue of $4.43 billion fell 85.04% short of the $29.65 billion analysts had expec… Read more NetEase delivered a sharply disappointing first quarter for fiscal 2026, posting non-GAAP EPS of $2.53 against a consensus estimate of $15.39, a miss of 83.56%, while revenue of $4.43 billion fell 85.04% short of the $29.65 billion analysts had expected and declined 84.6% year-over-year. The wide variance between reported figures and estimates reflects a currency and reporting-scale mismatch between the company's RMB-denominated results and USD consensus figures, though the underlying business showed genuine momentum; gaming revenues, anchored by the Fantasy Westward Journey franchise and the breakout title Where Winds Meet, drove the core Games segment to $3.73 billion, representing the primary growth engine for the quarter. Gross margins expanded meaningfully as cost of revenues fell due to lower platform revenue-sharing costs, lifting net income attributable to shareholders to $1.55 billion. Analysts at multiple firms maintained Buy ratings following the print, with the stock closing up nearly 6% on the results. Looking ahead, CEO William Ding pointed to continued investment in technological capabilities and global expansion as the company advances its international pipeline.
Key Takeaways
- • Higher net revenues from self-developed games including Fantasy Westward Journey franchise and Where Winds Meet
- • Lower revenue-sharing costs related to platforms reducing cost of revenues
- • Lower product costs contributing to cost of revenues decline
- • Sustained strong engagement across established titles with high-cadence content updates and gameplay innovation
NTES Forward Guidance & Outlook
CEO William Ding indicated the company will continue to strengthen technological capabilities and focus on innovation across content and development. NetEase aims to combine evolving technologies with deep operating expertise to create exceptional content and experiences, reaching a broader global audience. The company is advancing its pipeline of new titles and executing its international expansion strategy.
NTES YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
NTES Revenue by Segment
With YoY comparisons, source: SEC Filings
“For the first quarter of 2026, we delivered another solid quarter across our established gaming portfolio, while continuing to make steady progress advancing our pipeline of new titles. Our recent global launches have demonstrated strong cross-market appeal, supporting the continued execution of our international expansion strategy.”
— William Ding, Q1 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
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| 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% |