PDD Holdings shares slide after revenue and profit miss

PDD Holdings shares slide after revenue and profit miss PDD Holdings shares slide after revenue and profit miss Proactive uses images sourced from Shutterstock Proactive Wed, May 27, 2026 at 6:32 PM GMT+2 2 min read PDD PDD Holdings Inc (NASDAQ:PDD) shares fell nearly 11% on Wednesday after the Chinese e-commerce giant reported first-quarter revenue and profit that came in well below analyst expectations, even as the company unveiled an ambitious three-year supply chain investment program. Total revenue for the quarter grew 11% year-on-year to RMB106. 2 billion ($15.

4 billion), missing consensus estimates of $15. 9 billion by approximately 2. 2%.

Non-GAAP net profit of RMB14. 1 billion fell sharply short of the consensus forecast of RMB24. 6 billion.

GAAP earnings per share came in at $1. 38, against an estimated $2. 23.

Transaction services revenue rose 20% year-on-year to RMB56. 3 billion, broadly in line with expectations, while online marketing services and others revenue grew just 2. 5% to RMB49.

9 billion, lagging the consensus forecast of 7. 9% growth. Gross profit reached RMB59.

3 billion, with gross margins of approximately 55. 9%. Despite the soft results, management used the earnings call to outline a major strategic pivot as PDD enters what it described as its second decade of development.

The company announced a RMB100 billion merchant support program to be deployed over three years, with RMB15 billion committed in the first phase. The initiative targets the company's first-party brand business and aims to deepen integration across supply chains in multiple product categories, including product design, production standards, quality control, fulfillment and post-sales support. Management emphasized that good manufacturers frequently face challenges around talent, systems and scale, and that PDD intends to address those gaps by leveraging its technology platform and market reach.

The company also reaffirmed ongoing investment in agriculture products, industry belts and delivery infrastructure in remote areas. Jefferies maintained its Buy rating on PDD following the results, though the firm lowered its price target after what it characterized as softer-than-expected performance. The bank noted that management framed supply chain depth as a long-term competitive moat, and that the new investment program is designed to support high-quality manufacturers across a range of categories.

PDD also signaled a broader cultural and organizational shift, with management citing safety, compliance and social responsibility as central priorities as the platform repositions for what it called high-quality growth.