PDD Holdings Inc. (NASDAQ:PDD) reported first-quarter results that came in below Wall Street expectations, sending the company’s shares down more than 5% in premarket trading despite continued revenue growth.
The e-commerce group posted adjusted earnings per ADS of RMB9.51 ($1.38), well below analyst consensus estimates of RMB16.77
Shares of PDD Holdings declined 5.13% in premarket trading following the earnings release. Quarterly revenue totaled RMB106.2 billion ($15.4 billion), missing analyst expectations of RMB109.82 billion, although still representing year-over-year growth of 11% from RMB95.7 billion in the same period last year. Adjusted net income attributable to ordinary shareholders fell 17% year-over-year to RMB14.1 billion ($2.0 billion), compared with RMB16.9 billion in the first quarter of 2025.
The increase in revenue was mainly driven by strong growth in transaction services, where revenue rose 20% to RMB56.3 billion. Revenue from online marketing services and related activities increased more modestly to RMB49.9 billion from RMB48.7 billion a year earlier. Operating expenses increased to RMB39.8 billion during the quarter, up from RMB38.6 billion in the prior-year period.