PDD Holdings

PDD Holdings reported first quarter 2026 (ended March 31, 2026) total revenue of RMB 106.2 billion, up 11% year over year, as transaction services revenue grew 20% to RMB 56.3 billion while online marketing services and other revenue was roughly flat at RMB 49.9 billion. GAAP operating profit rose 22% to RMB 19.6 billion and the non-GAAP operating margin expanded to 20% from 19%, reflecting sales-and-marketing leverage as that expense fell to 31% of revenue from 34%. Despite the operating-line strength, GAAP net income attributable to ordinary shareholders was RMB 12.5 billion and GAAP diluted earnings per ADS declined to RMB 8.48 from RMB 9.94, pressured by lower non-operating income. Management deprioritized near-term results, launching a dedicated first-party brand company with an initial RMB 15 billion injection and a planned RMB 100 billion of investment over the next few years on top of the ongoing $100 billion merchant-support program. The tone was reform-minded and defensive, with leadership acknowledging shortcomings, emphasizing compliance and platform governance, and declining to provide margin or revenue guidance.