PDD Holdings Inc. (NASDAQ: PDD) Q2 Earnings: Revenue Growth Amid Profit Decline and Intense Competition

• PDD Holdings Inc. (NASDAQ: PDD) reported second-quarter revenue of RMB112.4 billion (US$16.6 billion), up 8% year over year. However, revenue was below analysts’ expectations.
• Net income attributable to ordinary shareholders declined 12% to RMB27.2 billion (US$4.0 billion), as operating expenses increased and competition remained intense.
• Adjusted diluted earnings per ADS exceeded expectations, while the company ended the quarter with RMB456.4 billion in cash, cash equivalents, and short-term investments.

PDD Holdings Inc. (NASDAQ: PDD) operates the Chinese e-commerce platform Pinduoduo and the international platform Temu. The company connects merchants, producers, and consumers through its online marketplaces and competes with other Chinese e-commerce companies, including Alibaba and JD.com.

On August 24, 2026, PDD announced unaudited results for the second quarter ended June 30, 2026. Total revenue rose 8% year over year to RMB112.4 billion (US$16.6 billion). While the figure showed continued growth, it missed the analyst consensus estimate of roughly RMB116.4 billion.

Revenue from online marketing services and other sources was RMB57.6 billion, while transaction-services revenue was RMB54.7 billion. Transaction-services revenue increased 13% from the prior-year period.

Net income attributable to ordinary shareholders fell 12% to RMB27.2 billion (US$4.0 billion), from RMB30.8 billion a year earlier. Non-GAAP net income attributable to ordinary shareholders declined 13% to RMB28.5 billion.

Operating expenses increased 13% to RMB36.6 billion. Sales and marketing expenses rose to RMB29.7 billion, while research-and-development expenses increased to RMB4.6 billion. PDD does not separately disclose Temu’s revenue or profitability, so it is not accurate to attribute the earnings decline solely to Temu’s expansion.

Operating profit increased 8% to RMB27.8 billion. Diluted earnings per ADS were RMB18.45, while non-GAAP diluted earnings per ADS were RMB19.33; the adjusted figure exceeded market expectations despite the decline from the prior-year quarter.

PDD generated RMB25.7 billion in operating cash flow during the quarter and held RMB456.4 billion in cash, cash equivalents, and short-term investments as of June 30, 2026. The company’s results reflect ongoing investment in its platform ecosystem amid intense domestic competition, changing international trade rules, and continued pressure on consumer spending.