PDD Holdings Inc. posted second-quarter 2026 results that beat earnings expectations but fell short on revenue, as the Chinese e-commerce group navigated a shifting regulatory and competitive landscape.
Adjusted earnings per share reached $19.33, exceeding the $18.35 consensus estimate by 5.34%. Revenue totaled $112.36 billion, missing the $113.90 billion forecast by 1.35%. In local currency terms, group revenue rose 8% year-over-year to RMB 112.4 billion, driven by a 13% increase in transaction services revenue to RMB 54.7 billion. Online marketing and other revenue grew 3.4% to RMB 57.6 billion.
Net income attributable to ordinary shareholders fell 12% year-over-year to RMB 27.2 billion, while non-GAAP net income declined 13% to RMB 28.5 billion. Operating profit rose 8% year-over-year to RMB 27.8 billion under GAAP, with the operating margin holding steady at 24.8%. Non-GAAP operating profit increased to RMB 29.1 billion, though the margin dipped to 26% from 27% a year earlier.
Cash generation strengthened, with operating cash flow up 19% year-over-year to RMB 25.7 billion. As of June 30, 2026, the company held RMB 456.4 billion in cash, cash equivalents, and short-term investments. R&D spending surged 40% year-over-year to RMB 4.3 billion.
Executives highlighted progress under the company’s RMB 100 billion support program, which has expanded from initial rollout to deeper execution across merchant networks and supply chains. More than 150 trust and safety measures were introduced, alongside over 50 targeted initiatives in June alone. A governance video course on store business licenses drew 340,000 views within 24 hours of launch.
Agricultural initiatives under the Duoduo Premium Produce program expanded to include regional specialties such as Jiangsu aquatic products, Chongqing plums, and Hainan pineapples. The introduction of the Golden Diamond pineapple variant reportedly expanded local cultivation from scattered plots to over 100,000 mu.
The company also emphasized support for industrial belts in regions including Suzhou, Shaoxing, and Jinhua, enabling manufacturers to halve production cycles. In Xiong’an New Area, PDD established a dedicated entity and acquired an office building to focus on intelligent technologies and data processing services.
Shares rose 3.1% in premarket trading to $91.12, up from the previous close of $88.38. The stock has traded between $71.94 and $139.41 over the past 52 weeks.
