---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/43511092.md"
description: "NetEase 2Q26 First Take: Q2 results were decent, but headline profit looked like a miss, mainly due to investment losses. Alibaba and PDD fell over 20% in Q2, leading to an approx. RMB 3 bn net loss on the investment portfolio. Ex-portfolio swings, the core OP rose 33% YoY, which is solid. Profit growth outpaced revenue as high-GPM self-developed titles took a larger mix, including self-developed PC games such as 'Where Winds Meet‌' and contribution from evergreen franchises. Further helped by tighter S&M and G&A, with lower employee incentives and controlled external UA. A weak spot was deferred revenue. While it beat BBG consensus, estimates may have been skewed; on the data, deferred revenue fell 12% QoQ in Q2, wider than typical seasonality.Beyond Cloud Music’s impact, this also underscores a lack of new launches. With 'Sea of Oblivion' underperforming and distribution-access tailwinds already played out, the H2 pipeline gap may continue to cap upside. On the plus side, high-margin evergreen titles provide a firm floor, and the Apple tax cut offers some incremental benefit. On a low base, NetEase is still positioned to deliver relatively steady performance in H2. $NTES(09999.HK) $NetEase(NTES.US)"
datetime: "2026-08-20T10:24:05.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/43511092.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/43511092.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/43511092.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# NetEase 2Q26 First Take: Q2 results were decent, b…


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**