PDD

PDD Holdings reported Q1 2026 total revenues of RMB 106.2 billion, up 11% year-over-year, driven primarily by transaction services revenue of RMB 56.3 billion, which grew 20% from the prior year period. Online marketing services and others came in at RMB 49.9 billion, essentially flat versus RMB 48.7 billion a year ago, a deceleration that drew analyst attention given relatively solid macro consumption data from China's National Bureau of Statistics in the quarter. Non-GAAP operating profit rose 15% to RMB 21.1 billion, with non-GAAP operating margin expanding modestly to 20% from 19% a year ago, reflecting some operating leverage even as absolute investment levels remain elevated. GAAP net income attributable to ordinary shareholders, however, declined to RMB 12.5 billion from RMB 14.7 billion in Q1 2025, and diluted GAAP EPS fell to RMB 8.48 from RMB 9.94, a meaningful year-over-year decline that reflects the gap between operating performance and below-the-line items. Non-GAAP diluted EPS came in at RMB 9.51 versus RMB 11.40 a year ago. Converting at prevailing rates, the non-GAAP EPS figure falls well below the consensus estimate of $2.40 per ADS, representing a significant miss on the bottom line even as revenue came in modestly above the $15.9 billion