PDD Holdings stock falls after Q1 earnings miss, as revenue growth was offset by lower net income and rising costs.
Stock Earnings Results
May 27, 2026
Table of Contents
May 27, 2026
PDD Holdings Inc. (NASDAQ: PDD) fell 12.67% after reporting first-quarter 2026 results that showed revenue growth, but earnings missed expectations as net income declined and costs increased.
PDD Holdings operates ecommerce platforms including Pinduoduo and Temu, serving consumers through online marketplaces, transaction services, marketing services, and global cross-border commerce.
The company reported diluted EPS of $1.23, below estimates of $2.23, representing a negative 44.8% earnings surprise. Revenue came in at $15.40 billion, below estimates of $15.94 billion, despite revenue growth of 16.8%.
PDD reported total revenue of RMB106.2 billion, or $15.4 billion, up 11% from RMB95.7 billion in the prior-year quarter.
The increase was mainly driven by growth in transaction services revenue.
Transaction services revenue rose 20% year-over-year to RMB56.3 billion, or $8.2 billion.
Online marketing services and other revenue came in at RMB49.9 billion, compared with RMB48.7 billion in the prior-year period.
Net income attributable to ordinary shareholders fell 15% to RMB12.5 billion, or $1.8 billion.
Non-GAAP net income declined 17% to RMB14.1 billion, or $2.0 billion. Diluted earnings per ADS fell to RMB8.48, or $1.23, compared with RMB9.94 a year earlier.
Operating profit increased 22% year-over-year to RMB19.6 billion, or $2.8 billion.
Non-GAAP operating profit rose 15% to RMB21.1 billion, or $3.1 billion. That shows operating profit improved, but the decline in net income still weighed on investor sentiment.
Total cost of revenues rose 15% to RMB46.9 billion.
The increase was mainly tied to higher fulfillment fees, bandwidth and server costs, and payment processing fees.
Operating expenses increased to RMB39.8 billion, compared with RMB38.6 billion a year earlier. Research and development expenses rose to RMB4.4 billion from RMB3.6 billion.
PDD ended the quarter with RMB436.1 billion, or $63.2 billion, in cash, cash equivalents, and short-term investments.
That was up from RMB422.3 billion at the end of 2025.
Investors are likely to watch whether PDD can restore stronger earnings growth while continuing to expand transaction services.
The key areas are:
PDD’s quarter was not weak on growth, but it was weak on earnings quality.
Revenue still increased, transaction services grew 20%, and operating profit improved. But the sharp earnings miss, lower net income, higher costs, and revenue shortfall gave investors a reason to sell.
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