PDD Holdings gains on second quarter earnings beat

Investing.com -- PDD Holdings Inc. (NASDAQ: PDD) reported second-quarter results that exceeded earnings expectations, though revenue came in slightly below analyst estimates. Shares have risen 1% premarket.

The e-commerce company posted adjusted earnings per ADS of RMB19.33 ($2.85), beating the analyst consensus of RMB18.35. Revenue reached RMB112.4 billion ($16.6 billion), missing the estimate of RMB113.9 billion but representing an 8% increase YoY from RMB104.0 billion in the same quarter of 2025. The revenue growth was primarily driven by a 13% increase in transaction services revenue to RMB54.7 billion.

Adjusted operating profit increased 5% YoY to RMB29.1 billion ($4.3 billion), up from RMB27.7 billion in the prior year period. However, adjusted net income attributable to ordinary shareholders declined 13% to RMB28.5 billion ($4.2 billion) from RMB32.7 billion a year earlier.

"We stepped up our ecosystem investments in the second quarter," said Jun Liu, VP of Finance. "At this stage, our priority is helping merchants thrive and strengthening the broader industry ecosystem. We will continue to focus on these fundamentals to drive the platform’s sustainable development over the long term."

Operating expenses rose 13% to RMB36.6 billion, primarily due to higher sales and marketing expenses, which increased to RMB29.7 billion from RMB27.2 billion in the year-ago quarter.

The company generated RMB25.7 billion in operating cash flow during the quarter, up from RMB21.6 billion in the second quarter of 2025.

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