PDD Holdings Q2 2026 earnings: profit falls 12%, beats estimates

PDD Holdings Q2 2026 earnings: profit falls 12%, beats estimates

Mon, August 24, 2026 at 3:35 PM GMT+3 2 min read

PDD Holdings, the Chinese parent company of bargain-shopping app Temu, reported second-quarter net income of 27.18 billion yuan ($4 billion), a 12% decline from the same period a year earlier. The result still cleared analyst expectations of 24.40 billion yuan, according to the Wall Street Journal.

Total revenue for the three months ended June 30 rose 8% to 112.36 billion yuan ($16.6 billion), the company said. Analysts had forecast revenue of 115.41 billion yuan, according to the Wall Street Journal.

Operating profit rose 8% year over year to 27.76 billion yuan ($4.1 billion). Total operating expenses climbed 13% to 36.58 billion yuan, driven by higher sales and marketing costs, the company said.

"We stepped up our ecosystem investments in the second quarter," said Jun Liu, vice president of finance at PDD Holdings, in a statement. "At this stage, our priority is helping merchants thrive and strengthening the broader industry ecosystem."

PDD has introduced a range of merchant support initiatives in recent quarters to counter competitive pressure from livestreaming and social commerce platforms. Short video apps such as ByteDance's Douyin and Xiaohongshu have captured a growing portion of consumer attention and spending that once flowed to established e-commerce players.

"We view compliance as a fundamental priority and are fully committed to safeguarding consumer rights and building lasting trust," co-chairman and co-chief executive officer Jiazhen Zhao said in a statement.

The company's Temu platform has also faced regulatory pressure abroad. The app received a fine exceeding $230 million from European Union regulators after authorities raised concerns about illegal products appearing on the platform.

PDD said cash, cash equivalents, and short-term investments stood at 456.4 billion yuan ($67.3 billion) as of June 30, up from 422.3 billion yuan at the end of 2025. Net cash generated from operating activities was 25.67 billion yuan ($3.8 billion) in the quarter, compared with 21.64 billion yuan in the same period a year earlier.

PDD's shares are down more than 20% on the year and touched their lowest point of 2026 in June.