Companies /Consumer Cyclical

PDD Holdings Inc

NASDAQ: PDD Internet Retail
$82.25
▼ $0.92 (−1.11%) today
Markets closed · 11:20pm ET

Q4 2025 Earnings

Reported Mar 26, 2026, 6:09am ET · SEC source
$2.59
Miss −87.73%
EPS · est. $21.08
$18.1B
Miss −85.48%
Revenue · est. $124.9B
−13.6%
Trailing market
PDD vs S&P since report
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−2%0+2%Mar 26Mar 27report 6:09am ETearnings−2.0%+0.7%
−2%0+2%Mar 26Mar 27earnings−2.0%+0.7%
PDD +0.7%S&P 500 −2.0%
−2%0+2%Mar 26Mar 27report 6:09am ETearnings−2.7%+0.7%
−2%0+2%Mar 26Mar 27earnings−2.7%+0.7%
PDD +0.7%NASDAQ −2.7%
−4%−2%0+2%Mar 25Apr 2report 6:09am ETearnings+0.6%−1.2%
−4%−2%0+2%Mar 25Apr 2earnings+0.6%−1.2%
PDD −1.2%S&P 500 +0.6%
−3%0+3%Mar 25Apr 2report 6:09am ETearnings+0.3%−1.2%
−3%0+3%Mar 25Apr 2earnings+0.3%−1.2%
PDD −1.2%NASDAQ +0.3%
−1.94%
Day of report
−0.81%
Next session
+0.25%
One week
−3.31%
30 days

S&P 500 over the same 30 days: +10.32%.

Did PDD Beat Earnings? Q4 2025 Results

PDD Holdings delivered a mixed fourth quarter for fiscal 2025, posting revenue of $18.13 billion, up 12% year-over-year, and earnings per share of $2.59, even as a deliberate investment push weighed heavily on the bottom line. GAAP net income attributable to ordinary shareholders fell 11% to $3.59 billion, with profitability squeezed by a sharp rise in fulfilment fees, server costs, and payment processing expenses, alongside a 30% full-year surge in R&D spending to $2.41 billion. The company is making no apologies for the margin compression. Co-CEO Jiazhen Zhao signaled an "all-in mindset" toward supply chain investment, and VP of Finance Jun Liu was explicit in warning that these commitments "are firm and long-term, and will inevitably affect our financial performance." Despite the profit pressure, PDD's balance sheet remained a point of strength, with cash and short-term investments climbing to $61.78 billion. Investors should expect further margin headwinds as the company prioritizes ecosystem scale over near-term earnings.

Key Takeaways
  • Transaction services revenue grew 19% YoY in Q4 driven by increased fulfilment fees and payment processing
  • Online marketing services revenue grew 5% YoY in Q4
  • R&D expenses increased 32% YoY in Q4 to RMB4,995 million due to increased staff costs and server costs
  • Sales and marketing expenses grew 10% YoY in Q4 to RMB34,352 million

“Over the past year, we stayed firmly committed to our strategic focus on high-quality development. We will continue to uphold our long-term philosophy, channeling greater resources into the stakeholders we serve, as we look ahead to the next decade of growth.”

PDD Holdings CEO, on the earnings call

Forward Guidance & Outlook

Management signaled a firm commitment to long-term investments that will inevitably pressure near-term financial performance. Supply chain investment was identified as the highest-conviction area, with an 'all-in mindset' to drive lasting ecosystem benefits. The company plans to channel greater resources into stakeholders as it enters its next decade of growth. VP of Finance Jun Liu explicitly warned that investments are 'firm and long-term, and will inevitably affect our financial performance,' suggesting continued margin compression ahead.

PDD YoY Financials

Revenue$18.1B
Gross Profit$10.1B
Operating Income$4.1B
Net Income$3.6B

PDD Revenue by Segment

Transaction Services$9.3B+19.0%
Online Marketing Services$8.8B+5.0%
Online Marketing Services and Others

Figures from SEC filings and company reports. Not investment advice.