PDD Holdings Shares Drop After Earnings Miss Despite Double-Digit Revenue Growth (PDD)

PDD Holdings Inc. (NASDAQ:PDD) reported first-quarter results that came successful beneath Wall Street expectations, sending the company’s shares down much than 5% successful premarket trading contempt continued gross growth.

The e-commerce radical posted adjusted net per ADS of RMB9.51 ($1.38), good beneath expert statement estimates of RMB16.77.

Shares of PDD Holdings declined 5.13% successful premarket trading pursuing the net release.

Quarterly gross totaled RMB106.2 cardinal ($15.4 billion), missing expert expectations of RMB109.82 billion, though inactive representing year-over-year maturation of 11% from RMB95.7 cardinal successful the aforesaid play past year.

Adjusted nett income attributable to mean shareholders fell 17% year-over-year to RMB14.1 cardinal ($2.0 billion), compared with RMB16.9 cardinal successful the archetypal 4th of 2025.

The summation successful gross was chiefly driven by beardown maturation successful transaction services, wherever gross roseate 20% to RMB56.3 billion. Revenue from online selling services and related activities accrued much modestly to RMB49.9 cardinal from RMB48.7 cardinal a twelvemonth earlier.

Operating expenses accrued to RMB39.8 cardinal during the quarter, up from RMB38.6 cardinal successful the prior-year period. Research and improvement spending besides rose, climbing to RMB4.4 cardinal from RMB3.6 billion.

Despite the net miss, adjusted operating nett accrued 15% year-over-year to RMB21.1 cardinal ($3.1 billion), compared with RMB18.3 cardinal successful the aforesaid 4th past year.

“As we caput into the adjacent decennary of our journey, proviso concatenation investments volition beryllium our halfway strategical priority,” said Jiazhen Zhao, Co-Chairman and Co-Chief Executive Officer. “We volition perpetrate important resources to gathering the first-party marque business, unlocking caller opportunities for our proviso concatenation partners, and driving exceptional worth for our customers.”

PDD Holdings reported cash, currency equivalents and short-term investments totaling RMB436.1 cardinal ($63.2 billion) arsenic of March 31, 2026, up from RMB422.3 cardinal astatine the extremity of 2025.

Net currency generated from operating activities besides improved, rising to RMB16.4 cardinal ($2.4 billion) from RMB15.5 cardinal successful the corresponding 4th past year.

PDD Holdings banal price