- PDD Holdings (NASDAQ:PDD) beat Wall Street expectations with Q2 earnings per share of US$3.08 and revenue of US$14.50 billion, driven by growth in online marketing services
- Net income and operating profit declined year-over-year, as the company faced intense global competition and rising costs, despite a 7 per cent increase in revenue
- Management remains focused on long-term growth, investing heavily in merchant support and platform sustainability, while navigating trade tensions and economic slowdown in China
- PDD Holdings stock (NASDSAQ:PDD) opened trading at US$125.85
PDD Holdings (NASDAQ:PDD), the parent company of fast-growing e-commerce platform Temu, reported second-quarter financial results that exceeded Wall Street forecasts, signaling resilience amid global economic headwinds and intensifying competition.
This content has been prepared as part of a partnership with PDD Holdings Inc. and is intended for informational purposes only.
The company posted earnings per share (EPS) of US$3.08, well above analysts’ consensus of US$2.16, on revenue of US$14.50 billion, slightly ahead of the expected US$14.30 billion. Despite the beat, net income and operating profit declined year-over-year, reflecting the pressures of a competitive retail landscape and slowing consumer demand in China.
Financial highlights
- Total revenue: US$14.50 billion (RMB103.98 billion), up 7 per cent year-over-year.
- Operating profit: US$3.60 billion (RMB25.79 billion), down 21 per cent from Q2 2024.
- Net income: US$4.29 billion (RMB30.75 billion), down 4 per cent year-over-year.
- Non-GAAP net income: US$4.57 billion (RMB32.71 billion), down 5 per cent year-over-year.
- Cash reserves: US$54.0 billion (RMB387.1 billion) as of June 30, 2025.
The company attributed the profit decline to “intense competition” in the global e-commerce sector and continued investment in merchant support initiatives. Domestic challenges in China, including sluggish economic growth and reduced consumer spending, also weighed on performance.
Strategic investments and outlook
“In the past quarter, we continued to invest in merchant support initiatives, and are encouraged by the progress made towards a healthier and more sustainable platform ecosystem,” Lei Chen, chairman and co-chief executive officer of PDD Holdings said in a news release.
PDD’s VP of Finance, Jun Liu, noted that while revenue growth moderated due to competition, the company remains committed to long-term value creation, even if it impacts short-term profitability.
Tariff concerns eased
The strong quarterly performance helped ease investor concerns about the potential impact of U.S. import tariffs on Chinese goods. Ongoing trade negotiations between the U.S. and China have delayed the imposition of steep tariffs, providing temporary relief to cross-border retailers like Temu.
Segment performance
- Online marketing services: US$7.78 billion (RMB55.70 billion), up 13 per cent year-over-year.
- Transaction services: US$6.74 billion (RMB48.28 billion), nearly flat compared to Q2 2024.
- Sales and marketing expenses: US$3.80 billion (RMB27.21 billion), reflecting continued investment in platform growth.
PDD Holdings Inc. is a multinational commerce company that owns and operates a portfolio of businesses.
PDD Holdings stock (NASDSAQ:PDD) opened trading nearly 3 per cent higher at US$125.85.
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