PDD (PDD) Q2 2026 earnings summary

Executive summary

• Revenue grew 8% year-over-year to RMB 112.4 billion, driven by transaction services, but net income declined 12% to RMB 27.2 billion due to continued investments in platform and ecosystem initiatives.

• Operating profit increased 8% to RMB 27.8 billion, while non-GAAP net income decreased 13% to RMB 28.5 billion.

• Management emphasized ecosystem investments, compliance, and trust-building as strategic priorities.

• The RMB 100 billion support program is yielding tangible results, supporting both merchants and consumers, and driving supply chain transformation and industrial upgrades.

• Enhanced platform governance, compliance, and risk management initiatives were implemented, including over 150 trust and safety measures and targeted food safety actions.

Financial highlights

• Total revenues: RMB 112.4 billion, up 8% year-over-year.

• Net income attributable to ordinary shareholders: RMB 27.2 billion, down from RMB 30.8 billion year-over-year.

• Non-GAAP net income: RMB 28.5 billion, down from RMB 32.7 billion year-over-year.

• Operating profit (GAAP): RMB 27.8 billion, up 8% year-over-year.

• Net cash from operating activities: RMB 25.7 billion, up from RMB 21.6 billion year-over-year.

Outlook and guidance

• Management remains confident in long-term growth, focusing on supply chain upgrades, rural market penetration, and high-quality development.

• Short-term challenges from regulatory changes, especially in the EU, are expected to impact cross-border order fulfillment and costs, but medium- to long-term supply chain investments are prioritized.

• The first-party brand business rollout is slower than expected but remains a strategic priority, with a focus on core categories and long-term collaboration with manufacturers.

• Management highlighted ongoing challenges and opportunities in global trade and regulatory environments.

• Focus remains on ecosystem governance, compliance, and supporting merchant growth for long-term sustainability.