NetEase’s games business grows 7% to $3.7bn in Q1 2026

• NetEase's games contributed 84% of overall net revenue during Q1, making $3.7 billion.
• The company made $4.4 billion in total net revenue.

NetEase’s games and related value-added services made RMB25.7 billion ($3.7bn) in net revenues during the first quarter of its fiscal year.

This marked a rise of almost 7% year-over-year, with strong engagement and revenue performance from titles such as Eggy Party, Where Winds Meet and the Fantasy Westward Journey franchise.

Blizzard titles, available in China through a partnership with NetEase, were also said to have "maintained stable operations" in the country.

In fact, NetEase’s presentation of its latest financials featured much of its games portfolio. While few were highlighted by name, 20 self-developed mobile games were included, as were 10 self-developed PC and console games. Licensed games like Minecraft: China Edition were also featured, with an overall portfolio of around 40 games shown.

Around 98% of this segment's net revenue came from online games. NetEase’s games business was more lucrative than NetEase Cloud Music, search engine Youdao and its other businesses combined.

Overall, NetEase generated RMB30.6bn ($4.4bn) during the quarter, 84% of which came from games and related services.

Where revenues meet

NetEase’s gross profit has also grown Y/Y, up by almost 15% to RMB21.2bn ($3.1bn).

Operating profit also increased, up 21% Y/Y to RMB12.7bn ($1.8bn).

At the same time, operating expenses grew by 7% to RMB8.6bn (US$1.2bn), attributed primarily to fluctuations in marketing expenses as well as general and administrative expenses.

"For the first quarter of 2026, we delivered another solid quarter across our established gaming portfolio, while continuing to make steady progress advancing our pipeline of new titles. Our recent global launches have demonstrated strong cross-market appeal, supporting the continued execution of our international expansion strategy," said NetEase CEO and director William Ding.

"Looking ahead, we will continue to strengthen our technological capabilities and focus on innovation across both content and development. By combining evolving technologies with our deep operating expertise, we aim to create exceptional content and experiences that exceed players' expectations and reach an even broader global audience."

During the quarter, NetEase sold Mattel the full ownership of Mattel163 for $159 million.