NetEase beats Q1 estimates as gaming, Cloud Music, Youdao, and international title expansion drive revenue growth.
Stock Earnings Results
May 21, 2026
Table of Contents
May 21, 2026
NetEase, Inc. (NASDAQ: NTES) reported first-quarter 2026 results above expectations, supported by growth in games, Cloud Music, Youdao, and continued international expansion across key titles.
NetEase is a Chinese internet and gaming company that operates online games, music streaming, education technology, ecommerce-related services, and other digital businesses.
The company reported non-GAAP EPS of $2.56, above estimates of $2.10, representing a 21.9% earnings surprise. Revenue came in at $4.43 billion, above estimates of $4.20 billion, with revenue growth of 11.6%.
NetEase reported first-quarter net revenue of RMB30.6 billion, or $4.4 billion, up 6.1% from the prior-year quarter.
The company’s gaming business remained the main driver, supported by established titles and ongoing content updates.
Games and related value-added services revenue increased 6.9% year-over-year to RMB25.7 billion, or $3.7 billion.
NetEase cited strong engagement and revenue performance across established titles, including Fantasy Westward Journey, Identity V, Eggy Party, Sword of Justice, and Where Winds Meet.
NetEase continued expanding internationally through titles such as Where Winds Meet and Marvel Rivals.
Management said recent global launches showed strong cross-market appeal, supporting the company’s international growth strategy.
NetEase Cloud Music revenue increased 6.6% year-over-year to RMB2.0 billion, or $287.2 million.
Youdao revenue rose 3.8% to RMB1.3 billion, or $195.4 million. Innovative businesses and others revenue declined 4.6% to RMB1.5 billion.
Gross profit increased 14.8% year-over-year to RMB21.2 billion, or $3.1 billion.
Total operating expenses increased 6.5% to RMB8.6 billion, showing that gross profit growth outpaced expense growth during the quarter.
Net income attributable to shareholders was RMB10.7 billion, or $1.5 billion.
Non-GAAP net income attributable to shareholders was RMB11.3 billion, or $1.6 billion.
Investors are likely to watch whether NetEase can sustain gaming growth while expanding globally.
The key areas are:
NetEase delivered a strong quarter because revenue, earnings, gaming performance, and gross profit all improved.
The company’s established games continue to generate stable revenue, while global launches give NetEase a larger growth runway outside China. The next test is whether new titles and international expansion can keep driving growth while maintaining profitability.
Platforms like LevelFields track earnings misses, layoffs, dividend increases, leadership changes, and stock reactions together, helping investors identify when small-cap healthcare stocks are moving on balance sheet progress rather than current revenue alone.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better investor.
AI scans for events proven to impact stock prices, so you don't have to.
LEARN MORE