PDD Holdings Q2 Sales Rise but Profit Falls on Investment Push

Earnings
โดย Simply Wall St·CN·Read original
Summary · why it matters

PDD Holdings reported Q2 2026 sales of CNY 112,358 million, up from CNY 103,985 million a year earlier, but net income declined to CNY 27,182 million from CNY 30,754 million, with earnings per share falling on both a basic and diluted basis. Management said it will accept lower near-term profitability as it boosts ecosystem investments and absorbs higher costs from new EU customs rules affecting its international business. This marks a multi-quarter trend of higher revenue but lower net income, with first-half 2026 net income of CNY 39,729 million down from CNY 45,496 million a year earlier. The company's narrative projects CNY 590.6 billion revenue and CNY 134.8 billion earnings by 2029, implying a fair value of $115.81 per share, a 32% upside to its current price. However, some analysts had assumed earnings could reach CNY 176.7 billion by 2029, and the latest results highlight the gap between optimistic forecasts and actual profitability.

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