PDD (PDD) Q1 2026 earnings summary

Executive summary

• Entered a new phase of a three-year strategy focused on building a first-party brand business and deep supply chain transformation, with a dedicated company in Shanghai and an initial RMB 15 billion investment, planning RMB 100 billion over three years.

• Group revenue for Q1 2026 reached RMB 106.2 billion (US$15.4 billion), up 11% year-over-year, driven mainly by transaction services growth.

• Operating profit rose 22% to RMB 19.6 billion, while non-GAAP operating profit increased 15% to RMB 21.1 billion.

• Net income attributable to ordinary shareholders was RMB 12.5 billion, down 15% year-over-year; non-GAAP net income dropped 17% to RMB 14.1 billion.

• Continued high investment in the Hundred Billion Support Program, supporting merchants, agriculture, and logistics to rural areas.

Financial highlights

• Total revenues increased 11% year-over-year to RMB 106.2 billion.

• Revenues from transaction services rose 20% year-over-year to RMB 56.3 billion.

• Revenues from online marketing services and others were RMB 49.9 billion, up from RMB 48.7 billion in Q1 2025.

• Total costs of revenues increased 15% to RMB 46.9 billion, mainly due to higher fulfillment, bandwidth, and payment processing fees.

• Net cash from operating activities was RMB 16.4 billion, up from RMB 15.5 billion year-over-year.

Outlook and guidance

• Focus remains on long-term value creation through sustained investment in the ecosystem and supply chain, not short-term results.

• The first-party brand initiative is expected to drive high-quality growth and supply chain upgrades over the next three years.

• Management anticipates continued fluctuations in margins due to seasonality and investment cycles, prioritizing long-term ecosystem health.