PDD Holdings' Q2 net profit decreased by 12% year-on-year to 27.2 billion yuan, with revenue growing by 8%, missing expectations. Wall Street investment banks lowered their target prices but maintained a "buy" rating.

PDD Holdings' net profit attributable to shareholders for Q2 2026 decreased by 12% year-on-year to RMB 27.2 billion, with revenue growing by 8% year-on-year, approximately 2.5% below market expectations. Among these, transaction service revenue (primarily influenced by Temu) increased by 13.3% year-on-year, significantly lower than the market's anticipated 21%-22%. Wall Street investment banks such as Goldman Sachs, Jefferies, and Morgan Stanley, in their latest research reports on August 25, generally lowered PDD Holdings' short-term earnings forecasts and target prices (Goldman Sachs lowered to $134, Jefferies to $118), but unanimously maintained "Buy/Overweight" ratings. Analysts pointed out that new regulations, such as the EU's elimination of the de minimis threshold, have substantially impacted Temu's European business. Concurrently, PDD Holdings is heavily investing in supporting domestic merchants and building a global supply chain, sacrificing short-term profits to build long-term barriers. Despite short-term pressure, the extremely low valuation and strategic focus on core e-commerce are the underlying logic for maintaining bullish ratings.