NetEase, Inc. (9999) Earnings Call Transcripts

NetEase, Inc.'s Latest Earnings Call - Q1 FY2026

In the first quarter of fiscal year 2026, NetEase, Inc. reported total revenue of RMB 30.6 billion, reflecting a 6% year-over-year increase, primarily driven by strong performance in its gaming segment. The company achieved net income of RMB 11.3 billion, with earnings per ADS at USD 0.51, stable year-over-year. Management maintained a positive outlook, emphasizing ongoing momentum in their game portfolio and a commitment to innovation, while also announcing a dividend of USD 0.44 per share and a share repurchase program totaling USD 5 billion.

Reported metrics

Guidance from management

Management signaled confidence in the ongoing success of their gaming portfolio and plans for global expansion, particularly for 'Where Winds Meet'. They aim to continue investing in innovation and quality content delivery.

What management said

[Interpreted]. Yes. [indiscernible] has hit another record of Picanco user at $3.9 million in Q1, which clearly shows that the unlimited server has successfully expanded the player base. Beyond the strong performance of the unlimited server the time-based classic server has also been growing steadily. With the development team's years of experience in long-term life operations, the oral game ecosystem is in good s...

What analysts pressed on

Analysts expressed concerns regarding the performance of non-gaming segments, particularly the decline in cloud and smart device revenues. There are also questions about how new titles will compete in a crowded market and sustain user engagement over time.

Main topics on the call

• Strong Gaming Revenue Growth — NetEase's gaming and related services generated net revenues of RMB 25.7 billion, up 7% year-over-year, driven by strong player engagement and successful content updates. Management stated, "Our performance of this quart...
• Successful Game Launches and Updates — The game 'Where Winds Meet' has become a global success, achieving high rankings on sales charts and maintaining player engagement through consistent updates. Management noted, "The update was well received by players, p...
• Increased Gross Profit Margin — NetEase's gross profit margin improved to 69.4%, up from 54.1% in the prior year, primarily due to lower revenue sharing costs. This reflects effective cost management and operational efficiency.
• Focus on Innovation and New Titles — Management highlighted ongoing development of new titles, including 'Ananta', which aims to differentiate itself in a crowded market. They emphasized, "We believe players always have strong appetite for innovative and po...

Read the full NetEase, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 4 NetEase, Inc. earnings call transcripts on record, spanning November 14, 2024 to May 21, 2026. Based on this history, NetEase, Inc. reports semi-annually. The most recent call on file is dated May 21, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

9999

Exchange

SEHK

Country

HK

Sector

Communication Services

Industry

Entertainment

Calls on record

4

First call

November 14, 2024

Most recent

May 21, 2026

Reporting cadence

semi-annually