NetEase IncGames revenue up 10% and gross margin improved, though net income fell due to investment losses; dividend and buyback announced.

NetEase reported second-quarter 2026 total revenue of RMB30.1 billion, with games and related value-added services revenue rising 10% year over year to RMB25 billion. The games segment gross margin improved to 76.1% from 70.2% a year earlier, driven by lower revenue-sharing costs. Non-GAAP net income attributable to shareholders declined year over year to RMB7.7 billion, primarily due to investment losses. The company approved a dividend of USD0.48 per ADS and has repurchased approximately 24.8 million ADS for USD2.3 billion under its USD5 billion program. NetEase's total net cash position stood at RMB167.5 billion as of June 30, 2026.
NetEase IncGames revenue up 10% and gross margin improved, though net income fell due to investment losses; dividend and buyback announced.