China Internet and Software Revenue Grows Steadily in First Half of 2026, Profit Growth Diverges

In the first half of 2026, China's internet and related service companies above the designated size achieved internet business revenue of 1,067.5 billion RMB, a year-on-year increase of 10.1%, with the growth rate down 0.3 percentage points from the January-May period. During the same period, these companies realized total profit of 98.99 billion RMB, up 16.6% year-on-year, with the growth rate accelerating by 6.9 percentage points from January-May. In terms of research and development spending, a total of 59.55 billion RMB was invested in the first half, up 14.1% year-on-year, with the growth rate down 1.2 percentage points from January-May.

From January to June 2026, China's software business revenue reached 7,718.2 billion RMB, up 9.5% year-on-year. Software industry profit totaled 899.9 billion RMB, up 1.0% year-on-year. Software business exports amounted to 33.79 billion USD, up 11.4% year-on-year. Software product revenue grew steadily, reaching 1,676.1 billion RMB in the first half, up 6.9% year-on-year, accounting for 21.7% of total industry revenue. Among this, basic software product revenue was 104.7 billion RMB, up 10.6%; industrial software product revenue was 154.7 billion RMB, up 8.2%. Information technology service revenue maintained double-digit growth, reaching 5,290.7 billion RMB in the first half, up 10.4% year-on-year, accounting for 68.5% of total industry revenue. Within this, cloud computing and big data services together achieved revenue of 887.7 billion RMB, up 12.1%, representing 16.8% of IT service revenue; integrated circuit design revenue was 236.5 billion RMB, up 20.1%; e-commerce platform technical service revenue was 622.1 billion RMB, up 5.5%.

Revenue from information security products and embedded systems software grew steadily. In the first half, information security product and service revenue was 142.5 billion RMB, up 6.3% year-on-year; embedded systems software revenue was 608.8 billion RMB, up 10.6% year-on-year.