PDD Holdings Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
PDD Holdings (NASDAQ:PDD) reported unaudited first quarter 2026 results for the period ended March 31, 2026.
Total revenues were RMB106.2 billion (US$115.4 billion), up 11% year over year, led by 20% growth in transaction services. Operating profit rose to RMB19.6 billion, up 22%.
Net income attributable to ordinary shareholders declined 15% to RMB12.5 billion, and non-GAAP net income fell 17% to RMB14.1 billion. Cash, cash equivalents and short-term investments reached RMB436.1 billion, with operating cash flow of RMB16.4 billion.
Positive
- Total revenue grew 11% year over year to RMB106.2 billion
- Transaction services revenue increased 20% to RMB56.3 billion
- Operating profit rose 22% year over year to RMB19.6 billion
- Non-GAAP operating profit increased 15% to RMB21.1 billion
- Operating cash flow improved to RMB16.4 billion from RMB15.5 billion
- Cash, cash equivalents and short-term investments increased to RMB436.1 billion
Negative
- Net income attributable to ordinary shareholders decreased 15% to RMB12.5 billion
- Non-GAAP net income attributable to ordinary shareholders declined 17% to RMB14.1 billion
- Non-GAAP diluted earnings per ADS fell to RMB9.51 from RMB11.41
- Total costs of revenues increased 15% to RMB46.9 billion
- Research and development expenses rose to RMB4.4 billion from RMB3.6 billion
News Market Reaction – PDD
In the May 27 session, PDD declined 10.38%, reflecting a significant negative market reaction. Argus tracked a trough of -11.8% from its starting point during tracking. Our momentum scanner triggered 100 alerts that day, indicating very high trading interest and price volatility. Trading volume was elevated at 2.2x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 25 | Q4/FY25 earnings | Neutral | +4.6% | Q4 and FY2025 revenue grew double digits while operating profit declined. |
| Nov 18 | Q3 2025 earnings | Positive | -7.3% | Q3 2025 delivered strong revenue and net income growth with higher cash flows. |
| Aug 25 | Q2 2025 earnings | Neutral | +0.9% | Q2 2025 revenue rose while operating profit and net income declined amid higher costs. |
| May 27 | Q1 2025 earnings | Negative | -13.6% | Q1 2025 saw rising revenue but steep drops in operating profit and net income. |
| Apr 28 | FY2024 20-F filing | Neutral | +1.0% | Annual Form 20-F filing providing audited financial statements and disclosures. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings have often paired solid revenue growth and large cash balances with pressured profitability, and market reactions have skewed cautious with several sizable post-earnings declines.
Over the past year, PDD’s earnings updates consistently highlighted revenue growth and a very large cash pile, but also rising costs and margin pressure. Q1 2025 and Q2 2025 showed revenue increases alongside sharp drops in operating profit and net income. Q3 2025 returned to profit growth, yet costs climbed. Q4/FY2025 results again combined double-digit revenue growth with lower operating profit. Against this backdrop, the latest Q1 2026 report continues the theme of revenue and operating profit growth but declining net income.
Key Terms
non-gaap financial
ads financial
u.s. gaap regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
DUBLIN and SHANGHAI, May 27, 2026 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
- Total revenues in the quarter were RMB106.2 billion (US$115.4 billion), an increase of
11% from RMB95.7 billion in the same quarter of 2025. - Operating profit in the quarter was RMB19.6 billion (US
$2.8 billion ), an increase of22% from RMB16.1 billion in the same quarter of 2025. Non-GAAP2 operating profit in the quarter was RMB21.1 billion (US$3.1 billion ), an increase of15% from RMB18.3 billion in the same quarter of 2025. - Net income attributable to ordinary shareholders in the quarter was RMB12.5 billion (US
$1.8 billion ), a decrease of15% from RMB14.7 billion in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB14.1 billion (US$2.0 billion ), a decrease of17% from RMB16.9 billion in the same quarter of 2025.
“This quarter marks the start of deep transformations in our business, our internal processes and our organization,” said Mr. Lei Chen, Co-Chairman and Co-Chief Executive Officer of PDD Holdings. “We are actively stepping up to our responsibilities as a platform enterprise to create greater value for our users, the industries and the society as a whole.”
“As we head into the next decade of our journey, supply chain investments will be our core strategic priority,” said Mr. Jiazhen Zhao, Co-Chairman and Co-Chief Executive Officer of PDD Holdings. “We will commit significant resources to building the first-party brand business, unlocking new opportunities for our supply chain partners, and driving exceptional value for our customers.”
“We are investing resolutely in our supply chain capabilities,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “These investments are the cornerstone of a resilient and thriving platform ecosystem, and we are prepared to invest over the long term.”
________________
1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.8980 to US
2 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.
First Quarter 2026 Unaudited Financial Results
Total revenues were RMB106.2 billion (US
- Revenues from online marketing services and others were RMB49.9 billion (US
$7.2 billion ), compared with RMB48.7 billion in the same quarter of 2025. - Revenues from transaction services were RMB56.3 billion (US
$8.2 billion ), an increase of20% from RMB47.0 billion in the same quarter of 2025.
Total costs of revenues were RMB46.9 billion (US
Total operating expenses were RMB39.8 billion (US
- Sales and marketing expenses were RMB33.8 billion (US
$4.9 billion ), compared with RMB33.4 billion in the same quarter of 2025. - General and administrative expenses were RMB1.6 billion (US
$229 million ), compared with RMB1.7 billion in the same quarter of 2025. - Research and development expenses were RMB4.4 billion (US
$640 million ), compared with RMB3.6 billion in the same quarter of 2025.
Operating profit in the quarter was RMB19.6 billion (US
Net income attributable to ordinary shareholders in the quarter was RMB12.5 billion (US
Basic earnings per ADS was RMB8.94 (US
Net cash generated from operating activities was RMB16.4 billion (US
Cash, cash equivalents and short-term investments were RMB436.1 billion (US
Other non-current assets were RMB95.2 billion (US
Conference Call
The Company’s management will hold an earnings conference call at 7:30 AM ET on May 27, 2026 (12:30 PM IST and 7:30 PM HKT on the same day).
The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share, and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude the impact of share-based compensation expenses.
The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects.
The Company’s non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure.
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company’s industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
About PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.
| PDD HOLDINGS INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Amounts in millions of Renminbi (“RMB”) and U.S. dollars (“US$”)) | ||||||
| As of | ||||||
| December 31, 2025 | March 31, 2026 | |||||
| RMB | RMB (Unaudited) | US$ (Unaudited) | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 108,901 | 123,041 | 17,837 | |||
| Restricted cash | 73,831 | 76,213 | 11,049 | |||
| Receivables from online payment platforms | 5,109 | 5,758 | 835 | |||
| Short-term investments | 313,408 | 313,030 | 45,380 | |||
| Amounts due from related parties | 10,205 | 9,768 | 1,416 | |||
| Prepayments and other current assets | 7,527 | 8,745 | 1,268 | |||
| Total current assets | 518,981 | 536,555 | 77,785 | |||
| Non-current assets | ||||||
| Property, equipment and software, net | 1,306 | 1,153 | 167 | |||
| Intangible assets | 15 | 15 | 2 | |||
| Right-of-use assets | 4,863 | 4,600 | 667 | |||
| Deferred tax assets | 172 | 202 | 29 | |||
| Other non-current assets | 104,708 | 95,179 | 13,798 | |||
| Total non-current assets | 111,064 | 101,149 | 14,663 | |||
| Total Assets | 630,045 | 637,704 | 92,448 | |||
| PDD HOLDINGS INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (Amounts in millions of Renminbi (“RMB”) and U.S. dollars (“US$”)) | |||||
| As of | |||||
| December 31, 2025 | March 31, 2026 | ||||
| RMB | RMB (Unaudited) | US$ (Unaudited) | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities | |||||
| Amounts due to related parties | 1,087 | 1,254 | 182 | ||
| Customer advances and deferred revenues | 3,379 | 3,521 | 510 | ||
| Payable to merchants | 107,407 | 109,151 | 15,824 | ||
| Accrued expenses and other liabilities | 81,658 | 77,309 | 11,207 | ||
| Merchant deposits | 17,708 | 17,905 | 2,596 | ||
| Lease liabilities | 2,499 | 2,502 | 363 | ||
| Total current liabilities | 213,738 | 211,642 | 30,682 | ||
| Non-current liabilities | |||||
| Lease liabilities | 2,880 | 2,620 | 380 | ||
| Deferred tax liabilities | 42 | 15 | 2 | ||
| Total non-current liabilities | 2,922 | 2,635 | 382 | ||
| Total Liabilities | 216,660 | 214,277 | 31,064 | ||
| Shareholders’ equity | |||||
| Ordinary shares | -* | -* | -* | ||
| Additional paid-in capital | 125,768 | 127,292 | 18,453 | ||
| Statutory reserves | 1,338 | 1,338 | 194 | ||
| Accumulated other comprehensive income/(loss) | 2,116 | (1,913) | (277) | ||
| Retained earnings | 284,163 | 296,710 | 43,014 | ||
| Total Shareholders’ Equity | 413,385 | 423,427 | 61,384 | ||
| Total Liabilities and Shareholders’ Equity | 630,045 | 637,704 | 92,448 | ||
* Absolute value is less than RMB1 million or US
| PDD HOLDINGS INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
| (Amounts in millions of RMB and US$) | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Revenues | 95,672 | 106,229 | 15,400 | |||
| Costs of revenues | (40,946) | (46,893) | (6,798) | |||
| Sales and marketing expenses | (33,403) | (33,773) | (4,896) | |||
| General and administrative expenses | (1,659) | (1,579) | (229) | |||
| Research and development expenses | (3,578) | (4,418) | (640) | |||
| Total operating expenses | (38,640) | (39,770) | (5,765) | |||
| Operating profit | 16,086 | 19,566 | 2,837 | |||
| Interest and investment income/(loss), net | 223 | (632) | (92) | |||
| Foreign exchange loss | (242) | (145) | (21) | |||
| Other income/(loss), net | 3,261 | (2,031) | (294) | |||
| Profit before income tax and share of results of equity investees | 19,328 | 16,758 | 2,430 | |||
| Share of results of equity investees | (105) | (96) | (14) | |||
| Income tax expenses | (4,481) | (4,115) | (597) | |||
| Net income | 14,742 | 12,547 | 1,819 | |||
| PDD HOLDINGS INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
| (Amounts in millions of RMB and US$, except for per share data) | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Net income | 14,742 | 12,547 | 1,819 | |||
| Net income attributable to ordinary shareholders | 14,742 | 12,547 | 1,819 | |||
| Earnings per ordinary share: | ||||||
| -Basic | 2.65 | 2.23 | 0.32 | |||
| -Diluted | 2.49 | 2.12 | 0.31 | |||
| Earnings per ADS (4 ordinary shares equals 1 ADS): | ||||||
| -Basic | 10.59 | 8.94 | 1.30 | |||
| -Diluted | 9.94 | 8.48 | 1.23 | |||
| Weighted-average number of ordinary shares outstanding (in millions): | ||||||
| -Basic | 5,568 | 5,616 | 5,616 | |||
| -Diluted | 5,932 | 5,920 | 5,920 | |||
| PDD HOLDINGS INC. | ||||||
| NOTES TO FINANCIAL INFORMATION | ||||||
| (Amounts in millions of RMB and US$) | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Revenues | ||||||
| - Online marketing services and others | 48,722 | 49,936 | 7,239 | |||
| - Transaction services | 46,950 | 56,293 | 8,161 | |||
| Total | 95,672 | 106,229 | 15,400 | |||
| PDD HOLDINGS INC. | ||||||
| NOTES TO FINANCIAL INFORMATION | ||||||
| (Amounts in millions of RMB and US$) | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Share-based compensation expenses included in: | ||||||
| Costs of revenues | 57 | 28 | 4 | |||
| Sales and marketing expenses | 637 | 361 | 52 | |||
| General and administrative expenses | 924 | 707 | 103 | |||
| Research and development expenses | 556 | 428 | 62 | |||
| Total | 2,174 | 1,524 | 221 | |||
| PDD HOLDINGS INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (Amounts in millions of RMB and US$) | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Net cash generated from operating activities | 15,517 | 16,445 | 2,384 | |||
| Net cash (used in)/generated from investing activities | (6,384) | 2,082 | 301 | |||
| Net cash generated from financing activities | -* | -* | -* | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (69) | (2,005) | (290) | |||
| Increase in cash, cash equivalents and restricted cash | 9,064 | 16,522 | 2,395 | |||
| Cash, cash equivalents and restricted cash at beginning of period | 126,194 | 182,732 | 26,491 | |||
| Cash, cash equivalents and restricted cash at end of period | 135,258 | 199,254 | 28,886 | |||
* Absolute value is less than RMB1 million or US
| PDD HOLDINGS INC. | ||||||
| RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES | ||||||
| (Amounts in millions of RMB and US$, except for per share data) | ||||||
| For the three months ended March 31, | ||||||
| 2025 | 2026 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Operating profit | 16,086 | 19,566 | 2,837 | |||
| Add: Share-based compensation expenses | 2,174 | 1,524 | 221 | |||
| Non-GAAP operating profit | 18,260 | 21,090 | 3,058 | |||
| Net income attributable to ordinary shareholders | 14,742 | 12,547 | 1,819 | |||
| Add: Share-based compensation expenses | 2,174 | 1,524 | 221 | |||
| Non-GAAP net income attributable to ordinary shareholders | 16,916 | 14,071 | 2,040 | |||
| Non-GAAP diluted weighted-average number of ordinary shares outstanding (in millions) | 5,932 | 5,920 | 5,920 | |||
| Diluted earnings per ordinary share | 2.49 | 2.12 | 0.31 | |||
| Add: Non-GAAP adjustments to earnings per ordinary share | 0.36 | 0.26 | 0.03 | |||
| Non-GAAP diluted earnings per ordinary share | 2.85 | 2.38 | 0.34 | |||
| Non-GAAP diluted earnings per ADS | 11.41 | 9.51 | 1.38 | |||
For investor and media inquiries, please contact: investor@pddholdings.com media@pddholdings.com