PDD Holdings Q2 2026 Earnings Call: Revenue Up 8%, Net Income Down 12%
Source Tradingkey
Key Takeaways
- PDD Holdings (NASDAQ: PDD) reported Q2 2026 revenue of RMB 112.4 billion, up 8% year over year, mainly driven by transaction services revenue growth.
- Transaction services revenue increased 13% to RMB 54.7 billion. Online marketing services and other revenue reached RMB 57.6 billion, compared with RMB 55.7 billion a year earlier.
- Net income attributable to ordinary shareholders fell 12% to RMB 27.2 billion. Management attributed the decline primarily to continued investment in the platform and broader industry ecosystem.
- GAAP operating profit rose 8% to RMB 27.8 billion, while non-GAAP operating margin narrowed to 26% from 27%.
- Non-GAAP R&D expenses increased 40% to RMB 4.3 billion as PDD expanded platform governance, risk controls and trust-and-safety capabilities.
- Management said EU customs changes will reduce fulfillment efficiency and raise costs for affected cross-border orders in the short term. The company is responding by adding local merchants and expanding local warehousing and fulfillment.
Key Financial Data
| Metric | Q2 2026 | Year-over-year comparison | Commentary |
|---|---|---|---|
| Total revenue | RMB 112.4 billion | +8% | Primarily driven by transaction services |
| Online marketing services and other revenue | RMB 57.6 billion | RMB 55.7 billion in Q2 2025 | Continued growth |
| Transaction services revenue | RMB 54.7 billion | +13% | Main revenue growth driver |
| Cost of revenue | RMB 48.0 billion | +5% | Up from RMB 45.9 billion |
| GAAP operating expenses | RMB 36.6 billion | +13% | Up from RMB 32.3 billion |
| Non-GAAP operating expenses | RMB 35.3 billion | RMB 30.4 billion in Q2 2025 | Equal to 31% of revenue, versus 29% |
| Non-GAAP sales and marketing expenses | RMB 29.3 billion | +10% | 26% of revenue, unchanged year over year |
| Non-GAAP R&D expenses | RMB 4.3 billion | +40% | Reflected increased technology and governance investment |
| GAAP operating profit | RMB 27.8 billion | +8% | Up from RMB 25.8 billion |
| Non-GAAP operating profit | RMB 29.1 billion | RMB 27.7 billion in Q2 2025 | Margin declined to 26% from 27% |
| Net income attributable to ordinary shareholders | RMB 27.2 billion | -12% | Down from RMB 30.8 billion |
| Diluted earnings per ADS | RMB 18.45 | RMB 20.75 in Q2 2025 | Basic earnings per ADS was RMB 19.32 |
| Non-GAAP net income | RMB 28.5 billion | RMB 32.7 billion in Q2 2025 | Non-GAAP diluted earnings per ADS was RMB 19.33 |
| Operating cash flow | RMB 25.7 billion | RMB 21.6 billion in Q2 2025 | Increased year over year |
| Cash, cash equivalents and short-term investments | RMB 156.4 billion | As of June 30, 2026 | — |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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