PDD Holdings misses Q3 expectations as revenue growth moderates

Investing.com -- PDD Holdings Inc. (NASDAQ: PDD) reported third-quarter earnings that fell short of analyst expectations, as the Chinese e-commerce giant faced increasing competition and external uncertainties. The company’s shares fell 2.3% following the announcement.

The parent company of Pinduoduo posted adjusted earnings per share of RMB21.08 ($2.96) for the third quarter, below the analyst estimate of RMB23.50. Revenue came in at RMB108.28 billion ($15.21 billion), significantly missing the consensus forecast of RMB145.2 billion, though still representing a 9% increase YoY.

Net income attributable to ordinary shareholders rose 17% YoY to RMB29.33 billion ($4.12 billion), while non-GAAP net income grew 14% to RMB31.38 billion ($4.41 billion).

"In the third quarter, revenues growth continued to moderate, reflecting the ongoing evolution of the competitive landscape and external uncertainties," said Ms. Jun Liu, VP of Finance of PDD Holdings. "As we roll out greater merchant support initiatives and ecosystem investments, financial results may continue to fluctuate from quarter to quarter."

The company’s operating profit reached RMB25.03 billion ($3.52 billion), slightly up from RMB24.29 billion in the same quarter last year. Revenue from transaction services increased 10% to RMB54.93 billion ($7.72 billion), while online marketing services and others grew 8% to RMB53.35 billion ($7.49 billion).

Total operating expenses remained relatively stable at RMB36.41 billion ($5.11 billion) compared to RMB35.35 billion a year earlier. However, research and development expenses surged 41% to RMB4.33 billion ($608.5 million), primarily due to increased staff costs and server expenses.

"As a public platform, we will continue to invest in merchant support initiatives, driving industry upgrades and the sustainable development of the platform in the long run," said Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer.

The company’s cash position remained strong, with cash, cash equivalents, and short-term investments reaching RMB423.8 billion ($59.5 billion) as of September 30, 2025.

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