PDD (PDD) Q2 2026 earnings summary

Executive summary

• Q2 revenue rose 8% YoY to RMB 112.4bn, while net income attributable to ordinary shareholders fell 12% to RMB 27.2bn; non-GAAP net income decreased 13% to RMB 28.5bn.

• Operating profit rose 8% to RMB 27.8bn; non-GAAP operating profit increased 5% to RMB 29.1bn.

• Strategic priorities include ecosystem investment, compliance, trust-building, stronger platform governance, and the RMB 100bn support program.

• A three-year first-party brand initiative is underway, though rollout took longer than expected; focus is on selective core categories and long-term manufacturer collaboration.

Financial highlights

• Revenue grew 8% YoY to RMB 112.4bn, driven mainly by transaction services.

• Online marketing services and other revenue was RMB 57.6bn, up 3%; transaction services revenue rose 13% to RMB 54.7bn.

• Costs of revenue increased 5% to RMB 48.0bn; GAAP operating expenses rose 13% to RMB 36.6bn, mainly due to higher sales and marketing costs.

• Basic and diluted earnings per ADS were RMB 19.32 and RMB 18.45, respectively, both down year over year; non-GAAP diluted EPS was RMB 19.33 vs. RMB 22.07.

• Operating cash flow was RMB 25.7bn, up from RMB 21.6bn in Q2 2025.

Outlook and guidance

• EU customs changes are expected to reduce fulfillment efficiency and raise near-term costs for affected cross-border orders; local merchants, warehousing, and fulfillment are strategic responses.

• Quick commerce has limited synergy with core e-commerce and grocery models; resources will focus on areas of established strength.

• Supply-chain investments are expected to create long-term value but may not yield immediate results.

• Focus remains on ecosystem governance, compliance, and supporting merchant growth amid global trade and regulatory challenges.