China’s internet firms record stronger profit and R&D growth in first half of 2026

According to official data released by the Ministry of Industry and Information Technology, China’s major internet and related service enterprises have delivered steady revenue expansion alongside accelerated profit growth across the first half of 2026, with continuous increases in corporate research and development investment.

Large-scale internet enterprises above designated size achieved total internet business revenue of 1.0675 trillion yuan in the first six months of the year, representing a year-on-year rise of 10.1 per cent. The stable revenue expansion reflects sustained market vitality in China’s digital service sector and solid operational resilience among leading internet enterprises.

Corporate profitability has further improved during the first half of 2026. The industry’s total profit reached 98.99 billion yuan, marking a year-on-year increase of 16.6 per cent. The profit growth rate has climbed 6.9 percentage points higher than the growth recorded in the first five months, demonstrating improving operational efficiency and healthier profit structures across the internet industry.

Internet enterprises have maintained steady investment in technological innovation amid business expansion. Total research and development expenditure of the sector totalled 59.55 billion yuan in the first half of 2026, up 14.1 per cent year on year. The robust growth in R&D spending highlights the industry’s ongoing shift toward technology-driven development, with digital enterprises continuing to prioritise core technological breakthroughs and innovative service iteration.

The industry’s current operational indicators signal balanced development featuring simultaneous growth in revenue, profit and innovation input. Internet enterprises will continue optimising operational models, upgrading digital service capabilities and increasing investment in emerging technological fields to consolidate high-quality development momentum for the digital economy.