BUSINESS

PDD Shares Rise After Earnings Beat, Despite Slower Growth at Temu

Published: Aug. 25, 2026 3:07 a.m. GMT+8

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PDD office building in Xiong’an, Hebei province, July 28, 2026. Photo: VCG

PDD Holdings Inc. reported second-quarter profit above market expectations on Monday, lifting its shares even as revenue missed forecasts amid slower international growth.

The Chinese e-commerce company posted revenue of 112.4 billion yuan ($16.7 billion) for the quarter ended June 30, up 8% from a year earlier but below the 115.2-billion-yuan average analyst estimate. Non-GAAP net income attributable to ordinary shareholders fell 13% to 28.5 billion yuan, slightly ahead of the 28-billion-yuan consensus.

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Q2 revenue rose 8% to 112.4B yuan, missing estimates; non-GAAP net income fell 13% to 28.5B yuan, beating consensus; shares gained 3.05%.
Temu’s global MAU fell 11% to 467M; European users dropped sharply after EU tariff changes, while U.S. users rebounded.
Operating expenses climbed 13% to 36.6B yuan due to self-operated brand investment; operating cash flow rose 19% to 25.7B yuan.

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Who’s Who

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What Happened When

March 25, 2026：: PDD announced the launch of Xin Pin Mu, a new business integrating supply chains of PDD and Temu for self-operated brands; set up a dedicated entity in Shanghai with initial cash injection of 15 billion yuan; plans to invest 100 billion yuan over three years.

End of June 2026：: PDD held 456.4 billion yuan in cash, cash equivalents and short-term investments, up 34.1 billion yuan from the end of 2025.

June 30, 2026：: Quarter ended; PDD reported second-quarter revenue of 112.4 billion yuan, up 8% year-over-year, below analyst estimates; non-GAAP net income attributable to ordinary shareholders fell 13% to 28.5 billion yuan.

July 1, 2026：: European Union introduced a similar policy change (de minimis duty exemption removal); Temu's European monthly and daily active users fell 30% and 41%, respectively.

July 2026：: Sensor Tower data showed Temu's global monthly active users fell 11% year-over-year to 467 million; daily active users declined 13% to 76.7 million; global downloads dropped 48% to 21.4 million.

Monday：: PDD Holdings reported second-quarter profit above market expectations; shares rose 3.05% to $91.1, valuing the company at about $129.6 billion.

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