PDD Holdings Inc. reported second-quarter earnings that exceeded analyst projections despite revenue falling short of estimates. The Chinese e-commerce group posted adjusted earnings per American Depositary Share (ADS) of RMB 19.33, topping the consensus forecast of RMB 18.35 by RMB 0.98.
Quarterly revenue reached RMB 112.4 billion, down from the estimated RMB 113.9 billion, though it marked an 8% increase from RMB 104.0 billion in the same period last year. Adjusted operating profit rose 5% year-over-year to RMB 29.1 billion, while adjusted net income attributable to ordinary shareholders declined 13% to RMB 28.5 billion.
Transaction services revenue grew 13% to RMB 54.7 billion, while online marketing services and other revenues increased to RMB 57.6 billion from RMB 55.7 billion previously. Operating expenses climbed 13% to RMB 36.6 billion, primarily due to higher sales and marketing spending, which rose to RMB 29.7 billion from RMB 27.2 billion a year earlier.
Cash flow from operations strengthened to RMB 25.7 billion, up from RMB 21.6 billion in the second quarter of 2025. As of June 30, the company held RMB 456.4 billion in cash, cash equivalents, and short-term investments, equivalent to $67.3 billion.
Jun Liu, vice president of finance at PDD Holdings, stated that the company prioritized ecosystem investments in the quarter, focusing on merchant support and industry development.
