PDD Holdings Reports Smaller Profit Decline Amid Slowing Revenue Growth

PDD Holdings, the Chinese parent company of the Temu bargain-shopping app, reported second-quarter 2025 results that exceeded analyst expectations despite challenges from tariffs and rising competition. Revenue grew 7% year-over-year to approximately 104 billion yuan ($14.5 billion), marking the slowest revenue growth in over three years, while net profit declined by about 4%, a much smaller drop than the anticipated 40%. The expiration of the U.S. de minimis tariff exemption in early May has pressured Temu and similar platforms, prompting shifts toward other markets like Europe and Brazil and increased use of U.S. warehouses to stabilize prices. Despite these headwinds and increased support for domestic merchants weighing on profitability, PDD remains focused on long-term value creation through sustained investments. Shares of PDD Holdings have risen notably in 2025, reflecting investor confidence amid mixed but resilient financial results. The broader earnings season has been mostly positive, though concerns persist about the impact of tariffs and economic uncertainty on consumer spending and corporate profits.