NetEase Inc. (NASDAQ: NTES) experienced a significant pre-market decline of 6.03% on Thursday. The sharp movement in the stock price occurred shortly before the company released its unaudited financial results for the first quarter ended March 31, 2026.

The company reported net revenues of RMB30.6 billion (US$4.4 billion), representing a 6.1% increase compared to the same quarter in 2025. While the games and related services segment, the company's core revenue driver, saw a 6.9% year-over-year increase, the innovative businesses and others segment reported a 4.6% decrease in net revenues. Total operating expenses rose by 6.5% compared to the prior year period.

Investors may be reacting to mixed signals within the report, including the decline in certain non-core business segments and increased operating costs, despite overall growth in revenue and profit. The market's pre-market sell-off suggests the results may have fallen short of investor expectations for the Chinese internet and gaming giant.