PDD Holdings Q2 Revenue Misses but Adjusted Profit Beats as Net Income Drops 12%

PDD Holdings reported second-quarter 2026 revenue of RMB 112.4 billion, up 8% year over year but short of the roughly RMB 115.2 billion to RMB 116.35 billion analysts had expected. Adjusted earnings per ADS came in at RMB 19.33, topping consensus estimates of around RMB 18.22 to RMB 18.51, while adjusted operating profit rose 5% to RMB 29.1 billion against an estimate near RMB 27.1 billion to RMB 28.4 billion. GAAP net income fell 12% year over year, weighed down by a net other loss of RMB 7.4 billion compared with RMB 119 million of other income in the year-ago period.

Transaction services revenue reached RMB 54.7 billion, up 13% but below the RMB 58.36 billion estimate, while online marketing services contributed RMB 57.6 billion versus RMB 55.7 billion a year earlier. Operating cash flow improved to RMB 25.7 billion from RMB 21.6 billion, and the company held RMB 456.4 billion in cash and short-term investments. Sales and marketing spending rose to RMB 29.7 billion from RMB 27.2 billion, and R&D climbed to RMB 4.6 billion from RMB 3.6 billion, reflecting what management called stepped-up ecosystem investments.

Executives cited evolving global trade and regulatory landscapes as significant challenges, and the company signaled an ambition to build what it described as another PDD over the next three years. Shares of the Temu parent rose roughly 2% to 4% in premarket New York trading after the results.