PDD Holdings (PDD)

Outperform Recap: Q2 2026

A Low Bar Cleared, a Higher Wall Ahead: Operating Profit Grows a Fourth Straight Quarter, a RMB 7.4B Other Loss Drags EPS -12%, and the EU Duty Rebuilds the Tariff Wall Temu Just Climbed — Maintaining Outperform

Outperform Recap: Q1 2026

First Year-Over-Year Margin Expansion of the Cycle, a 40% EPS Miss Split Roughly Evenly Above and Below the Operating Line, and RMB 100 Billion Committed to a First-Party Brand Business With No Metrics

Outperform Recap: Q4 2025

Q4 / FY2025 Revenue +12% (Best Quarter), Transaction Services +19% YoY (Temu Continued Recovery), GAAP Operating Profit +8% YoY, Non-GAAP OP Margin Only -100bp YoY (Best of Year) BUT Non-GAAP EPS -12% YoY on Below-the-Line Items, Cash Position Flat QoQ, "Build Another Pinduoduo" 3-Year Strategic Framework — Maintaining Outperform

Outperform Recap: Q3 2025

Q3 Multi-Quarter Inflection: Revenue +9% Re-Accelerates, Transaction Services +10% YoY Recovers (vs Q2's +1%), Non-GAAP OP Margin Only -200bp YoY Stabilization (vs Q1's -1400bp / Q2's -940bp), Non-GAAP EPS +13% YoY First Positive Growth Since Q4 2024, GAAP Operating Profit +3% YoY, OCF +66% YoY at RMB 45.7B, 10-Year "Costco + Disney" Vision — Upgrading From Hold (CB) to Outperform

Hold Recap: Q2 2025

Q2 Revenue +7% Edges Past Street and Non-GAAP EPS RMB 22.07 (-5% YoY) Beats Depressed Estimates, Operating Margin Compression Decelerates (S&M as % Revenue Stabilizes at 26%), Cash Position Grew to RMB 387.1B, Transaction Services Growth +1% YoY Intensifies Temu Concern — Maintaining Hold (CB)

Hold Recap: Q1 2025

Q1 Revenue +10% Misses, Non-GAAP Operating Margin Collapses From 33% to 19% (-1400bp YoY), Non-GAAP EPS -45% YoY, RMB 100 Billion Merchant Support Program Launched, Transaction Services Growth Decelerates to +6% on Temu Tariff Pressure — Initiating at Hold (CB)