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The Zacks Consensus Estimate for PDD’s third-quarter revenues is pegged at $15.21 billion, indicating growth of 7.44% on a year-over-year basis.
The consensus mark for third-quarter earnings is pegged at $2.21 per share, unchanged over the past 30 days, indicating a decline of 16.6% from the year-ago quarter's figure.
PDD beat the Zacks Consensus Estimate for earnings twice in the trailing four quarters, with an average surprise of 6.42%.
PDD Holdings Inc. Sponsored ADR Price and EPS Surprise
PDD Holdings is expected to have faced a challenging operating environment in the third quarter of 2025 as intensified competition and macroeconomic pressures are likely to weigh on results. The company's continued execution of its RMB 100 billion merchant support program, announced during the second quarter, remained a strategic priority through the third quarter, though management indicated these sustained investments would continue pressuring short-term profitability.
During the second-quarter earnings call, management emphasized its commitment to long-term value creation through substantial ecosystem investments, acknowledging that revenue growth moderated and operating profit declined due to competitive pressures. This dynamic is likely to have persisted through the third quarter as competition from Alibaba's revitalized platforms, JD.com, and livestream-focused competitors like Douyin intensified across China's e-commerce landscape.
The company's global business, particularly Temu, encountered significant regulatory challenges as tariff uncertainties and the modification of de minimis exemptions created pressure for merchants. While PDD strategically shifted toward local fulfillment and semi-managed logistics models to mitigate these headwinds, the transition is likely to have impacted margins and growth momentum during the quarter under review.
On the positive side, government consumption subsidies doubled to RMB 300 billion and targeted trade-in programs might have provided some support for platform transaction volumes. Additionally, the company's focus on supporting high-quality merchants and enhancing platform sustainability could position it favorably for longer-term recovery.
Given the confluence of margin pressures from ecosystem investments, competitive intensity, regulatory uncertainties, and macroeconomic constraints, investors may be prudent to hold existing positions or await greater clarity on profitability stabilization before initiating new positions ahead of the November earnings release.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
PDD has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:
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PDD Holdings Gears Up to Report Q3 Earnings: Key Factors to Note
Key Takeaways
PDD Holdings (PDD - Free Report) is scheduled to release third-quarter 2025 results on Nov. 18.
The Zacks Consensus Estimate for PDD’s third-quarter revenues is pegged at $15.21 billion, indicating growth of 7.44% on a year-over-year basis.
The consensus mark for third-quarter earnings is pegged at $2.21 per share, unchanged over the past 30 days, indicating a decline of 16.6% from the year-ago quarter's figure.
PDD beat the Zacks Consensus Estimate for earnings twice in the trailing four quarters, with an average surprise of 6.42%.
PDD Holdings Inc. Sponsored ADR Price and EPS Surprise
PDD Holdings Inc. Sponsored ADR price-eps-surprise | PDD Holdings Inc. Sponsored ADR Quote
Key Factors to Consider for PDD
PDD Holdings is expected to have faced a challenging operating environment in the third quarter of 2025 as intensified competition and macroeconomic pressures are likely to weigh on results. The company's continued execution of its RMB 100 billion merchant support program, announced during the second quarter, remained a strategic priority through the third quarter, though management indicated these sustained investments would continue pressuring short-term profitability.
During the second-quarter earnings call, management emphasized its commitment to long-term value creation through substantial ecosystem investments, acknowledging that revenue growth moderated and operating profit declined due to competitive pressures. This dynamic is likely to have persisted through the third quarter as competition from Alibaba's revitalized platforms, JD.com, and livestream-focused competitors like Douyin intensified across China's e-commerce landscape.
The company's global business, particularly Temu, encountered significant regulatory challenges as tariff uncertainties and the modification of de minimis exemptions created pressure for merchants. While PDD strategically shifted toward local fulfillment and semi-managed logistics models to mitigate these headwinds, the transition is likely to have impacted margins and growth momentum during the quarter under review.
On the positive side, government consumption subsidies doubled to RMB 300 billion and targeted trade-in programs might have provided some support for platform transaction volumes. Additionally, the company's focus on supporting high-quality merchants and enhancing platform sustainability could position it favorably for longer-term recovery.
Given the confluence of margin pressures from ecosystem investments, competitive intensity, regulatory uncertainties, and macroeconomic constraints, investors may be prudent to hold existing positions or await greater clarity on profitability stabilization before initiating new positions ahead of the November earnings release.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
PDD has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:
NVIDIA (NVDA - Free Report) presently has an Earnings ESP of +3.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have risen 41.7% year to date. NVDA is scheduled to report third-quarter fiscal 2026 results on Nov. 19.
Semtech Corporation (SMTC - Free Report) presently has an Earnings ESP of +1.29% and a Zacks Rank #2.
Semtech Corporation shares have increased 5.9% year to date. SMTC is scheduled to report third-quarter fiscal 2026 results on Nov. 24.
Workday (WDAY - Free Report) presently has an Earnings ESP of +2.94% and a Zacks Rank #3.
Workday shares have plunged 10.5% year to date. WDAY is scheduled to report third-quarter fiscal 2026 results on Nov. 25.