BUSINESS

PDD Shares Tumble After Profit Miss

Published: May. 28, 2026 4:05 p.m. GMT+8

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A PDD parcel collection and delivery station in Dongguan, Guangdong province. Photo: VCG

PDD Holdings Inc.’s first-quarter profit fell well short of expectations, sending its U.S.-listed shares tumbling, as weaker domestic growth offset strength in its international business.

Net profit dropped 15% year-on-year to 12.5 billion yuan ($1.8 billion) in the quarter, while revenue rose 11% to 106.2 billion yuan, according to financial results released Wednesday. Both figures missed market forecasts, with net profit significantly below the FactSet consensus estimate of 22.8 billion yuan.

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Net profit fell 15% to 12.5 billion yuan, missing forecasts; shares dropped to $87.75 in premarket.
Domestic revenue rose only 2.5%, while international transaction services grew 20%, led by Temu.
PDD plans total investment of 100 billion yuan over three years to build “another Pinduoduo.”

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Who’s Who

PDD Holdings Inc.: PDD Holdings Inc. reported a 15% drop in Q1 net profit to 12.5 billion yuan, missing forecasts, as weak domestic growth offset strong international sales. Revenue rose 11% to 106.2 billion yuan. Temu drove transaction services revenue up 20%. Cash flow remained strong, with a new 100 billion yuan venture, Xinpinmu, planned over three years.

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What Happened When

2022 Q3：: Temu, PDD's overseas bargain platform, was launched.

2025：: PDD's American depositary shares had previously traded at $87.75 or higher.

2025 end：: PDD held 422.3 billion yuan in cash, cash equivalents, and short-term investments (inferred from 436.1 billion at end of Q1 2026, up 13.8 billion).

By May 2025：: PDD's American depositary shares were last at $87.75, their lowest level since that date.

March 25, 2026：: PDD announced the establishment of a Shanghai entity, Xinpinmu, backed by an initial 15 billion yuan injection and planned total investment of 100 billion yuan over the next three years.

Q1 2026：: PDD reported financial results: net profit dropped 15% year-on-year to 12.5 billion yuan; revenue rose 11% to 106.2 billion yuan. Online marketing services revenue rose 2.5% to 49.9 billion yuan; transaction services revenue rose 20% to 56.3 billion yuan. Cash from operations rose 58% to 16.4 billion yuan. Temu accounted for more than half of total revenue.

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