China's PDD Holdings Q4 net income falls due to higher operating expenses

PDD Holdings

25/03/2026 10:41

Overview

China commerce group's Q4 revenue rose 12% yr/yr, driven by online marketing and transaction services

Q4 net income fell 11% yr/yr as operating expenses increased

Adjusted net income for Q4 declined 12% yr/yr

Outlook

Company says supply chain investment will be a key focus in 2026

Result Drivers

TRANSACTION SERVICES - Revenue growth was primarily driven by a 19% increase in transaction services revenue

RISING COSTS - Higher fulfilment fees, bandwidth and server costs, and payment processing fees led to a 15% increase in cost of revenues

HIGHER SALES AND MARKETING SPEND - Operating expenses rose mainly due to increased sales and marketing expenses

Company press release: ID:nGNX4ypkmj

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
RMB 123.91 bln
Q4 Adjusted Earnings per ADS
RMB 17.69
Q4 Adjusted Net Income
RMB 26.30 bln
Q4 Net Income
RMB 24.54 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 10 "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 $147.00, about 49.9% above its March 24 closing price of $98.09

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)