---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/41160870.md"
description: "PDD 1Q26 First Take: results missed, with both revenue growth and profit below Bloomberg consensus. Details follow: 1) Total revenue rose 11% YoY, below the 13.5% the market expected. The miss was driven by marketing/ad revenue rather than transaction revenue. Marketing revenue grew just 2.5%, well under the ~8% expected. Peers’ e-com segments accelerated vs. 4Q25, but PDD uniquely slowed QoQ. With sector GMV improving, we infer a notable drop in ad monetization. We suspect tighter e-com tax normalization hurt PDD disproportionately. 2) Commission-based revenue grew nearly 20% YoY, accelerating QoQ and slightly topping the 18% consensus. Given weak growth in the domestic core marketplace, Temu (and possibly Duo Duo Grocery) likely outperformed. That said, precise Street expectations for Temu remain fuzzy. We estimate Temu revenue growth at approx. 25% this quarter vs. ~20% in the prior quarter. Solid, but not as exciting as media headlines about Europe and LatAm would suggest. 3) OP grew 22% YoY, with adj. OP up 15.5% YoY. While profits rebounded from last year’s trough caused by state subsidies, the recovery was ~6% below the Street. Of the ~RMB 3.5bn YoY increase in group OP, most likely came from Temu’s narrowing losses, implying limited profit growth at the core site. Marketing spend was ~RMB 33.8bn, up 1% YoY. Given last year’s peak company-funded state subsidies, both we and the market had expected a YoY decline. $PDD(PDD.US) $PDD(PDD.US)"
datetime: "2026-05-27T11:51:29.000Z"
locales:
  - [en](https://longbridge.com/en/topics/41160870.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/41160870.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/41160870.md)
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# PDD 1Q26 First Take: results missed, with both rev…


### Related Stocks

- [PDD.US](https://longbridge.com/en/quote/PDD.US.md)

## Comments (14)

- **星星阿 · 2026-06-01T02:31:16.000Z**: PDD will keep falling, because the US data for TEMU is even more disappointing.
- **胖胖的龙龙 · 2026-05-27T13:47:48.000Z**: Enterprises that genuinely and steadfastly support agriculture
- **八戒123 · 2026-05-27T13:07:30.000Z**: Buy, as the potential downside is limited.
- **一缕阳光 · 2026-05-27T12:21:31.000Z · 👍 9**: Since the announcement that Duoduo is going head-to-head with regulators, I've cleared out all my Duoduo holdings.
  - **我爱华夏** (2026-05-27T13:10:55.000Z): Yeah, daring to go against the state, there must be some shady business, and there might be even bigger scandals in the future.
  - **一缕阳光** (2026-05-27T13:21:24.000Z): 说明整个公司的管理与文化已经烂掉了，没有底线了，完全违备了公司本分的价值观，这种公司要远离。
  - **Dolphin Research** (2026-05-28T02:41:31.000Z): Preserving profits is also a rational choice.
- **up up April · 2026-05-27T12:06:27.000Z · 👍 3**: Compared to the first quarter of 2025, it's still pretty good.
  - **Dolphin Research** (2026-05-28T08:20:54.000Z): LOL, a year has passed and it still hasn't been forgotten.
- **万元户 · 2026-05-27T12:01:06.000Z · 👍 2**: Who else is a senior executive of this company besides Huang Zheng? They seem to have very little presence.
  - **做空中国我嘴硬** (2026-05-27T13:19:39.000Z): Not allowed to post
  - **Dolphin Research** (2026-05-28T02:40:21.000Z): Hmm, not much disclosed, quite low-key.
- **小翔同学 · 2026-05-27T11:57:54.000Z · 👍 5**: Do not agree with this company's values