PDD Holdings Inc. (NASDAQ:PDD) stock slid Wednesday after the Temu parent reported mixed fiscal first-quarter 2026 results, as slowing Chinese consumer demand and rising investment spending weighed on profitability.
Revenue Growth Slows As Profit Declines
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Revenue rose 11% year over year to $15.4 billion, or 106.2 billion Chinese yuan. The revenue from online marketing services and other businesses increased 2.5% to $7.24 billion, while transaction services revenue climbed 19.9% to $8.16 billion.
Total cost of revenue increased 15% to $6.8 billion, driven by higher fulfillment fees, server and bandwidth costs, and payment processing expenses. Operating expenses rose 2.9% to $5.77 billion.
