NetEase revenue rises 6.1% on resilient gaming demand

NetEase (NASDAQ:NTES) reported a 6.1% increase in net revenues for the first quarter of 2026, supported by steady performance across its core interactive entertainment division and enhanced operational efficiencies.

The Hangzhou-based internet services provider generated RMB30.6 billion ($4.2 billion) in total net revenues for the three months ended March 31, 2026, compared to the same period last year.

The expansion highlights the resilience of the company’s flagship titles amid a stabilizing domestic regulatory landscape and ongoing international expansion efforts.

The company's central gaming division remained the primary driver of growth.

Games and related value-added services brought in RMB25.7 billion, accounting for approximately 84% of total group revenues.

Operational efficiencies and a favorable shift in product mix boosted profitability during the quarter.

Gross profit reached RMB21.2 billion, representing a 14.8% year-over-year surge.

Net income attributable to NetEase shareholders came in at RMB10.7 billion, demonstrating disciplined cost management across its operational segments, which include its majority-controlled education unit, Youdao.

Meanwhile, NetEase maintained a highly liquid financial position to close out the first quarter.

Operating cash flow was reported at RMB13.7 billion, helping lift the firm’s total net cash position to RMB167.5 billion.

Management utilized the robust cash generation to reinforce its ongoing commitment to shareholder returns.

The board of directors approved a first-quarter dividend of $0.144 per share, equivalent to $0.720 per American Depositary Share (ADS).

Additionally, the company confirmed that its existing share repurchase program, authorized for up to $5.0 billion, remains active.