China's NetEase Q2 revenue rises 7.9% on game growth

NetEase

20/08/2026 10:05

Overview
China online game provider's Q2 revenue rose 7.9% yr/yr, driven by self-developed titles
Non-GAAP net income for Q2 fell sequentially but rose from a year earlier
Company cites growth in self-developed games and stable music, learning segments

Outlook
Company did not provide specific financial outlook

Result Drivers
SELF-DEVELOPED GAMES - Co said Q2 yr/yr revenue growth was driven by higher net revenues from self-developed games such as Fantasy Westward Journey and Where Winds Meet
LEARNING SERVICES - Youdao segment saw revenue growth mainly from higher net revenues in its learning services
LOWER COSTS - Co attributed lower cost of revenues to reduced revenue-sharing and product costs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 30.10 bln
 
Q2 Adjusted Net Income
 
RMB 7.70 bln
 
Q2 Net Income
 
RMB 7 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for NetEase, Inc. is HK$243.50, about 25.3% above its August 19 closing price of HK$194.40
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Aug 20 - China's Netease Cloud Music H1 revenue rises on larger subscriber base
Aug 19 - China's Kingsoft Q2 revenue rises 9% as office software growth offsets games decline
Aug 17 - Alibaba to sell Lingxi Games in more than $2 billion deal, source says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-20/3020fff5-c2e9-4225-b3b8-d0d4c4f1371e.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)