PDD (PDD) Q1 2026 Earnings Call Transcript

PDD Holdings disclosed its Q1 2026 results, highlighting RMB 106.2 billion in total revenue, up 11% year over year, driven by growth in Transaction Services (RMB 56.3B, +20%) and Online Marketing Services and Others (RMB 49.9B). Cost of revenues rose 15% to RMB 46.9B. GAAP operating profit reached RMB 19.6B, up 22%, with non-GAAP operating profit at RMB 21.1B and a 20% non-GAAP operating margin. Net income attributable to ordinary shareholders was RMB 12.5B, versus RMB 14.7 million a year earlier, while non-GAAP net income stood at RMB 14.1B. Non-GAAP diluted earnings per ADS were RMB 9.51. R&D expenses, reported non-GAAP, were RMB 4.0B (+32%). Cash flow from operations was RMB 16.4B; cash and equivalents plus short-term investments totaled RMB 436.1B as of March 31, 2026. Strategic initiatives include a RMB 15B initial injection for a First-Party Brand initiative in Changan, with a planned RMB 100B across several years, and platform improvements expanding free shipping to over 70% of local villages and daily transfer warehouse orders nearing 10,000.