Key Points – NetEase posted stronger Q1 2026 results, with total net revenue up 6% year over year to RMB 30.6 billion and games revenue rising 7%.
Gross margin also improved sharply to 69.4%, while non-GAAP net income held steady at RMB 11.3 billion. – Games remained the main growth engine, led by titles such as Where Winds Meet, Marvel Rivals, and the Fantasy Westward Journey franchise
Management highlighted record engagement and sales rankings across both domestic and overseas markets, including strong Steam performance for Where Winds Meet and Marvel Rivals. – NetEase emphasized a robust pipeline and shareholder returns, saying new games Sea of Elements and Ananta are progressing, while the company ended the quarter with RMB 167.5 billion in net cash. It also approved a quarterly dividend and continued buybacks under its $5 billion repurchase program. – Overlooked Analyst-Approved Dividend Plays You Can Count On NetEase (NASDAQ:NTES) reported higher first-quarter revenue for 2026, driven by continued growth in its games business and stronger gross margins, while management highlighted momentum across major titles including Where Winds Meet, Marvel Rivals and the Fantasy Westward Journey franchise. Total net revenue rose 6% year over year to RMB 30.6 billion, or $4.4 billion, Vice President of Finance Aileen Mo said on the company’s earnings call.
Games and related value-added services generated RMB 25.7 billion in revenue, up 7% from a year earlier. Online game revenue totaled RMB 25.1 billion, increasing 18% quarter over quarter and 7% year over year, which Mo attributed to higher revenue from self-developed games including the Fantasy Westward Journey franchise and Where Winds Meet. Games Portfolio Drives First-Quarter Performance – David Tepper Loads Up on China—These 5 Stocks Stand Out Bill Pang, vice president of corporate development, speaking from prepared remarks on behalf of Chief Executive Officer William Ding, said 2026 was “off to a solid start,”…