On May 21, NetEase unveiled its financial results for the first quarter of 2026, showcasing a resilient business performance. The company reported a net revenue of RMB 30.6 billion and R&D investment of RMB 4.5 billion. Under non-GAAP accounting standards, net profit attributable to shareholders reached RMB 11.3 billion.

During this period, NetEase continued to strengthen its global footprint, advancing the development of new products and refining content offerings. The company remains dedicated to deepening content quality and fostering R&D innovation, aiming to exceed player expectations with premium content and enriched experiences for a global audience.

Following the release of these stronger-than-anticipated results, NetEase's Hong Kong-listed shares experienced a notable surge. On May 22, they rose over 9% during intraday trading, closing at HKD 181.5 per share.

01.

Timeless Classics Excel, Major New Games Set for Launch

In Q1, NetEase's diversified gaming portfolio continued to thrive, with net revenue from gaming and related value-added services reaching RMB 25.7 billion, accelerating its global expansion.

The financial report highlighted that several classic NetEase titles maintained robust player engagement and revenue through frequent content updates and gameplay innovations. These include the Fantasy Westward Journey series, Identity V, Eggy Party, Justice Online mobile, and Where Winds Meet. Meanwhile, Blizzard titles continued to operate steadily in the Chinese market, bolstered by ongoing localization efforts.

NetEase further solidified its presence in the global market, with popular titles expanding internationally and enhancing player interaction. Where Winds Meet achieved record-high global user numbers and revenue, climbing to No. 2 on Steam's Global Bestsellers list after an overseas version update, setting a new benchmark for cultural exports. Marvel Rivals also reached No. 2 on Steam's U.S. Bestsellers list, driven by consistent updates and high-quality content.

Major new titles like Forgotten Seas and Infinite Horizon are making steady progress. These blockbusters are set to redefine player experiences with innovative designs and gameplay directions that could shape future industry trends. Forgotten Seas received enthusiastic feedback in its latest test round and will launch its third test on May 28, marking final preparations for its open beta. Industry experts believe that with its unique "Sailing + Roguelike + Turn-Based" gameplay combination and high-caliber art design, Forgotten Seas exhibits strong differentiated competitiveness and is poised to become a significant growth driver for NetEase in the second half of the year.

02.

Launching China's First Fully Open-Source AI Assistant, Accelerating Full-Scenario AI Agent Deployment

Amid the surge in AI Agent development, NetEase Youdao has continuously refined its "Ziyue" education large model, focusing on learning and productivity scenarios while expanding its AI Agent product lineup. Youdao reported Q1 net revenue of RMB 1.3 billion, maintaining positive operating profit for seven consecutive quarters and achieving its best cash flow performance for the same period since 2022.

During the reporting period, Youdao not only exceeded RMB 100 million in AI subscription service sales but also introduced two landmark AI Agent products—Youdao LobsterAI and Youdao Treasury—completing its full-scenario AI Agent matrix. As China's first open-source desktop-grade full-scenario personal AI assistant, LobsterAI has garnered over 5,200 stars on GitHub and received the sole public endorsement from "Father of Lobster" Peter Steinberger. Youdao Treasury offers users one-stop knowledge management, AI-powered Q&A, and multimodal content generation services, establishing local advantages in service stability, cost-effectiveness, and Chinese contextual understanding.

In Q1, NetEase's Innovation and Other Businesses segment reported net revenue of RMB 1.5 billion. NetEase Yanxuan celebrated its 10th anniversary with a brand revamp, establishing a Global Pet Innovation R&D Center, overhauling its brand membership center, and enhancing product expertise and full-link user experience. Yanxuan was also included in the inaugural "Zhejiang Consumer Famous Brands" list, receiving multiple quality awards. NetEase Media deepened its AI-driven creative engine strategy for human-machine collaboration, with NetEase News app creators increasing daily content production by 12% month-over-month, further boosting community engagement. NetEase Zhiqi introduced ClawHive, an enterprise-grade AI Agent management platform, addressing four key challenges in enterprise AI adoption: security, deployment, knowledge retention, and management. Its comprehensive suite of Agent products—including intelligent customer service, private domain operations, data analytics, intelligent development, and compliance solutions—helps enterprises efficiently harness AI productivity.

Recently, products such as NetEase Cloud Music, NetEase Youdao, NetEase News, NetEase Mail, and NetEase Bee have fully integrated the DeepSeek-V4 large model, delivering more personalized and innovative user experiences.

NetEase remains committed to sustainable development, driving value growth through technological innovation. According to NetEase's 2025 ESG Report, the company's MSCI rating has been upgraded to the highest AAA level, while its S&P Global ESG score significantly outperforms industry averages. It has also maintained Sustainalytics' "Low Risk" rating for seven consecutive years.

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