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.
Recommended Articles
Rising bond yields pressured global stocks this week, while oil and gold extended their rallies. Catch up on the key market moves, what drove investor sentiment and the major risks traders should watch in the week ahead.
The altcoin market cap surged by $215 billion between August 19 and 22, a gain of more than 24% in 3 days, pushing Total2 back above $1 trillion. Key indicators, however, suggest altseason remains unc
Alibaba Group Holding (BABA) seeks to raise about $10 billion in a share sale.The Chinese e-commerce and cloud computing giant said it will channel 100% of net proceeds into full-stack AI capabilities
Ship traffic through the Strait of Hormuz jumped almost 400% in two weeks. The report landed on Saturday, with oil markets shut. Monday is the first chance traders get to price it.On the surface, that
Japan’s 10-year government bond yield (JP10Y) touched 2.945%, its highest level since September 1996. The yen has since slipped back toward 159 per dollar, undoing almost half of this month’s rescue r
