China's PDD Holdings Q1 revenue rises 11%, net income falls 15%

PDD Holdings

27/05/2026 11:39

Overview
China e-commerce group's Q1 revenue rose 11% yr/yr, driven by transaction services growth
Q1 net income fell 15% yr/yr as costs and investments increased
Company increased supply chain investments as part of ongoing business transformation

Outlook
Company says supply chain investments will be a core strategic priority going forward
PDD Holdings plans to commit significant resources to building first-party brand business

Result Drivers
TRANSACTION SERVICES GROWTH - Revenue growth was mainly driven by a 20% increase in transaction services revenue
HIGHER FULFILLMENT AND TECH COSTS - Increased fulfillment fees, bandwidth, server, and payment processing costs contributed to higher cost of revenues
SUPPLY CHAIN INVESTMENT - Company increased research and development spending as part of supply chain investments

Company press release: ID:nGNX37Lwn2

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
RMB 106.20 bln
 
Q1 Adjusted Earnings per ADS
 
RMB 9.51
 
Q1 Adjusted Net Income
 
RMB 14.10 bln
 
Q1 Net Income
 
RMB 12.50 bln
 
Q1 Adjusted EBIT
 
RMB 21.10 bln
 
Q1 EBIT
 
RMB 19.60 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 27 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for PDD Holdings Inc is $144.23, about 49.2% above its May 26 closing price of $96.64
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)