PDD Q2 net income falls 12% to 27.18B yuan, beats estimates

Published Aug 26, 12:27 AM UTC

PDD Holdings, the Chinese parent company of Temu, reported second-quarter 2026 net income of 27.18 billion yuan ($4 billion), a 12% decline year-over-year but above analyst expectations of 24.40 billion yuan. Total revenue rose 8% to 112.36 billion yuan ($16.6 billion), slightly missing forecasts of 115.41 billion yuan. Operating profit increased 8% to 27.76 billion yuan, while operating expenses climbed 13% to 36.58 billion yuan due to higher sales and marketing costs. The company has introduced merchant support initiatives to counter competition from livestreaming and social commerce platforms like Douyin and Xiaohongshu. Temu faced regulatory pressure, receiving a fine exceeding $230 million from EU regulators over illegal products. PDD's cash and short-term investments stood at 456.4 billion yuan as of June 30. Shares are down over 20% year-to-date, hitting a 2026 low in June.