PDD Holdings Q3 Earnings Beat Estimates, Revenues Increase Y/Y

PDD Holdings Inc. PDD reported third-quarter 2025 non-GAAP earnings of $2.96 per ADS (American Depositary Share), which surpassed the Zacks Consensus Estimate by 33.94%. The figure increased 11.7% year over year. In domestic currency (Renminbi), the company reported earnings of RMB 21.08, up 13.4% year over year.Revenues of $15.21 billion rose 7.4% year over year. The figure missed the Zacks Consensus Estimate by 0.01%. In domestic currency, revenues increased to RMB 108.28 billion, a 9% year-over-year rise.Revenues by SegmentsOnline marketing services and other revenues — representing 49.3% of total revenues — rose to RMB 53.35 billion ($7.49 billion), up 8% from the year-ago quarter.Transaction services revenues, which accounted for 50.7% of total revenues, were RMB 54.93 billion ($7.72 billion), reflecting a 10% increase from the year-ago quarter.PDD Holdings Inc. Sponsored ADR Price, Consensus and EPS Surprise PDD Holdings Inc. Sponsored ADR price-consensus-eps-surprise-chart | PDD Holdings Inc. Sponsored ADR QuotePDD’s Q3 Operating DetailsIn the third quarter, sales and marketing expenses were RMB 30.32 billion ($4.26 billion), down from RMB 30.48 billion in the year-ago quarter.General and administrative expenses were RMB 1.76 billion ($246.6 million), decreased from RMB 1.81 billion year over year.Research and development expenses were RMB 4.33 billion ($608.5 million), up from RMB 3.06 billion on a year-over-year basis. The increase was caused mainly by higher staff-related as well as bandwidth and server costs.Non-GAAP operating profit was RMB 27.08 billion ($3.8 billion), down 1.2% year over year. The margin contracted to 25%, from 26.9% in the prior year.PDD’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, cash, cash equivalents and short-term investments were RMB 423.8 billion ($59.5 billion), up from RMB 387.1 billion ($54 billion) as of June 30, 2025.Other non-current assets were RMB 90.5 billion ($12.7 billion) as of Sept. 30, 2025, compared with RMB 85 billion ($11.9 billion) as of June 30, 2025.Net cash generated from operating activities was RMB 45.66 billion ($6.41 billion), up from RMB 21.64 billion ($3.02 billion) in the prior quarter.PDD’s Zacks Rank & Stocks to ConsiderCurrently, PDD carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Macy's, Inc. M, Dollar General DG and Stitch Fix SFIX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of M have gained 15.5% year to date. It is set to report third-quarter fiscal 2025 results on Dec. 3.Shares of DG have risen 35% year to date. It is set to report third-quarter fiscal 2025 results on Dec. 4.Shares of SFIX have declined 5.8% year to date. It is set to report first-quarter fiscal 2026 results on Dec. 4.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Macy's, Inc. (M): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis Report PDD Holdings Inc. Sponsored ADR (PDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks