Netease (NTES)
NASDAQ:NTES
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Earnings Data
Report Date
Aug 13, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.33Last Year’s EPS
2.18Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominantly positive operating and financial picture driven by strong games performance: solid revenue growth, improved gross margins, stable non-GAAP profitability, rising cash resources, and multiple title-level successes (global hits, anniversary/announced milestones, and pipeline progress). Offsetting risks include declines in certain non-games segments (Cloud Music, innovative business/e-commerce and advertising), elevated marketing spend, and intensified competition in the open-world category. On balance, the strengths in the core games business and margin/cash improvements materially outweigh the headwinds in other segments.Company Guidance
Total Revenue and Growth
Total net revenue of RMB 30.6 billion in Q1 2026, representing a ~6% year-over-year increase. Games and related value-added services drove the majority of revenue at RMB 25.7 billion (up 7% YoY).
Online Games Strong Performance
Net revenues from online games reached RMB 25.1 billion, up 18% quarter-over-quarter and 7% year-over-year, driven by higher revenue from self-developed titles and sustained player engagement.
Gross Margin Expansion
Overall gross profit margin improved to 69.4% (from 54.1% a year ago). Gross margin for games rose to 74.8% (vs. 68.8% YoY), reflecting lower platform revenue-sharing costs and higher mix of higher-margin game revenue.
Profitability and Cash Position
Non-GAAP net income attributable to shareholders was RMB 11.3 billion (USD ~1.6 billion), broadly stable year-over-year. Non-GAAP basic earnings were USD 0.51 per ADS. Net cash position increased to RMB 167.2 billion from RMB 153.5 billion at end-2025.
Dividend and Capital Return Program
Board approved a cash dividend of USD 0.44 per share for the quarter. Management continues its USD 5 billion share repurchase program (repurchases ongoing).
Flagship Title Successes (Global & Domestic)
Where Winds Meet: global phenomenon since overseas launch, consistently high engagement, major updates (including v1.6) and reached #2 on Steam's global top-seller chart. Multiple other titles achieved strong milestones: Marvel-related title reached #2 on Steam U.S. chart; crossover and anniversary events (e.g., BlackStripe second anniversary) produced record daily active users for those titles; several MMOs and franchises reported record or multi-year highs in player activity and revenue.
Pipeline and New Titles Progress
New titles in development (e.g., Radome and Enanta) reported steady progress with positive testing feedback and a targeted Q3 launch window for one title, indicating continued investment in future growth drivers.
Third-Party & Blizzard Title Localized Success
Localized operations for Blizzard titles strengthened retention and engagement in China (e.g., WoW Midnight expansion launched March 3; Diablo IV expansion and Diablo II update increased monthly active users).
AI, Learning Services and Product Innovation
Advanced AI-native strategy: continued iteration on large language models and AI integration across the ecosystem. Youdao showed growth in AI-enabled subscription offerings and added new AI-native applications and knowledge-base capabilities.
ESG and External Recognition
Published 7th annual ESG report; reduced greenhouse gas emissions by 12% YoY through energy efficiency improvements. MSCI upgraded NetEase to AAA (media & entertainment industry leader). Included in Forbes' World's Best Employers list for 9 consecutive years.
NTES 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
NTES Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 21, 2026 | $116.82 | $114.34 | -2.12% |
Feb 11, 2026 | $122.30 | $117.33 | -4.06% |
Nov 20, 2025 | $131.57 | $132.09 | +0.40% |
Aug 14, 2025 | $132.47 | $127.33 | -3.88% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Netease (NTES) report earnings?
Netease (NTES) is schdueled to report earning on Aug 13, 2026, After Close (Confirmed).
What is Netease (NTES) earnings time?
Netease (NTES) earnings time is at Aug 13, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is NTES EPS forecast?
NTES EPS forecast for the fiscal quarter 2026 (Q2) is 2.33.
