Meituan Q2 2026 First Take: At first glance, results looked strong. Revenue came in slightly above expectations, with a bigger surprise on profits vs. Bloomberg consensus.Both core local commerce and group OP beat by over RMB 2bn. Initial take: profit recovery is tracking better than expected.

On the one hand, Dolphin Research believes Meituan is firmly on a recovery path. With the food-delivery price war fading, both growth and profitability are improving.The local commerce segment also swung to profit this quarter, and not by a small margin.

However, we would caution that the headline profit lacks quality. The quarter booked over RMB 3bn in other gains from shutting down Select and other investments.Excluding this, group OP was still hovering around breakeven.

Also, while most metrics beat Bloomberg consensus, they were merely in line with top-tier houses such as Goldman Sachs. In short, the recovery is real, but not as stunning as it first appears.$MEITUAN(03690.HK)