PDD Reports Lower Q1 Profit Despite Higher Revenue, Stock Down

(RTTNews) - On Wednesday, PDD Holdings Inc. (PDD), a multinational commerce group, reported lower profit in the first quarter of 2026, ending March 31, which is attributable to investment loss, and higher expenses in marketing and Research & Development.

The net income attributable to ordinary shareholders for the first quarter went down to RMB12.54 billion ($1.8 billion) or RMB2.12 ($0.31) per share, from RMB14.74 billion or RMB2.49 per share. The adjusted net income attributable to ordinary shareholders for the first quarter was RMB14.18 billion ($2.1 billion) or RMB 2.12 ($0.31), compared to RMB17 billion. The decrease in profit is attributable to the presence of investment loss and higher expenses in marketing and research and development.

The operating profit for the first quarter went up to RMB19.6 billion (US$2.8 billion), an increase of 22% from RMB16.1 billion in the same quarter of 2025. The adjusted operating profit was RMB21.1 billion (US$3.1 billion), an increase of 15% from RMB18.3 billion last year.

The total revenue for the first quarter was RMB106.2 billion (US$115.4 billion), an increase of 11% from RMB95.7 billion the previous year. This increase is attributable to the higher transaction revenues.

Currently, the stock is trading at $86.76, 10.18% lower on the Nasdaq.