NetEase Q2 Games Revenue Up 9.7% YoY, Surprising Investment Loss of 2.95 Billion Yuan; Ding Lei: 'Forgotten Sea' Reputation Improving

Summary

NetEase released its Q2 2026 financial results on August 20. The company reported net revenue of RMB 30.1 billion, up 7% year-over-year. The games business continued its growth trajectory, with a notable 9.7% YoY increase. However, an investment loss of RMB 2.95 billion surprised the market and became a key focus for investors. During the subsequent earnings call, CEO Ding Lei commented on the company's game 'Forgotten Sea', stating that the title's reputation is improving and the team is committed to optimizing the product experience to further enhance player satisfaction. This statement injected some confidence into the market. The earnings report not only demonstrates NetEase's resilience in its core gaming business but also reveals volatility risks in its investment portfolio. For players, the improving reputation of 'Forgotten Sea' suggests potential positive adjustments to game content and operations, making it worth following. From an industry perspective, the contrast between NetEase's gaming growth and investment losses highlights the challenges and opportunities in game companies' diversified strategies, offering a reference for other firms. Overall, while maintaining competitiveness in gaming, NetEase needs to manage investment risks more prudently to achieve long-term stable development.