NetEase Q2 Revenue Up 8% YoY to RMB 30.1B, Adjusted EPS of RMB 12.02 Misses Estimates | Earnings Report

NetEase reported Q2 2026 revenue of RMB 30.11 billion, with gaming revenue of RMB 25.02 billion, both beating market expectations. Gross profit reached RMB 21.22 billion, up 17.5% year-over-year. However, adjusted earnings per ADS of RMB 12.02 fell well short of the RMB 15.59 estimate, mainly due to investment losses of nearly RMB 3 billion and an effective tax rate rising to 25.5%. Shares dropped over 6% in pre-market trading following the report. The core gaming business remains stable, but profits were dragged by non-operating factors. The market is watching whether new titles can translate into sustained earnings growth.