China's PDD Holdings Q2 revenue rises on strength in transaction services

PDD Holdings

24/08/2026 11:42

Overview
China commerce group's Q2 revenue grew 8% yr/yr, driven by transaction services
Adjusted net income for Q2 fell 13% yr/yr
Company increased ecosystem investments amid evolving global trade and regulatory challenges

Outlook
Company did not provide specific guidance for the current quarter or full year

Result Drivers
TRANSACTION SERVICES - Co said revenue growth was mainly driven by increased revenues from transaction services
ECOSYSTEM INVESTMENTS - Co stepped up ecosystem investments in Q2, prioritizing merchant support and industry ecosystem strengthening, per VP of Finance Jun Liu
HIGHER OPERATING EXPENSES - Operating expenses rose 13% yr/yr, mainly due to increased sales and marketing costs

Company press release: ID:nGNX9gcRLV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 112.36 bln
 
Q2 Net Income
 
RMB 27.18 bln
 
Q2 EBIT
 
RMB 27.76 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 13 "hold" and 2 "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 $118.04, about 33.6% above its August 21 closing price of $88.38
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.)