1Q25 Revenue: $13.18B, +10% YoY, miss estimates by $1.17B
1Q25 Non-GAAP EPADS: $1.56, miss estimates by $1.08
2Q25 Guidance: No guidance provided.
Comment: PDD Holdings’ Q1 net profit fell 47% to RMB14.74bn (US$2.05bn), missing expectations as operating margins were pressured by intense local competition, strategic promotional spending, and heightened global trade uncertainty. Revenue also missed analyst forecasts at RMB95.67bn (US$13.18bn). The domestic Pinduoduo platform, faced headwinds from weak Chinese consumer spending and price wars with rivals Alibaba and JD.com. Meanwhile, Temu, PDD’s international arm, contended with tariff challenges and global trade volatility. Looking ahead, PDD is expected to continue investing in strategic promotions and merchant support to sustain its ecosystem despite margin pressures. Internationally, Temu plans to offset tariff headwinds by collaborating with local merchants to stabilize prices and secure supply chains. While near-term profitability may remain challenged, PDD’s emphasis on competitive pricing and merchant partnerships could help regain momentum as global and domestic consumption trends gradually stabilize. 2Q25recommended trading range: $100 to $120. Neutral Outlook.
1Q26 Revenue: $688M, +11.5% YoY, beat estimates by $7.92M
1Q26 Non-GAAP EPS: $0.86, beat estimates by $0.09
2Q26 Guidance: Expect total revenue of $710mn to $712mn, representing a growth rate of 10% YoY; Expect Non-GAAP operating income of $183mn to $185mn, which yields a non-GAAP operating margin of 26%; Expect Non-GAAP diluted net income per share of $0.83 to $0.84 vs consensus of $0.79.
FY26 Guidance: Expect total revenue of $2.850bn to $2.860bn, representing a growth rate of 9% to 10% YoY; Expect Non-GAAP operating income of $710mn to $720mn, which yields a non-GAAP operating margin of 25%; Expect Non-GAAP diluted net income per share of $3.23 to $3.28, vs consensus of $3.20
Comment: Okta delivered strong results to start FY26, marked by record operating profit and another quarter of healthy free cash flow. The company reaffirmed its FY26 revenue guidance and raised its FY26 adjusted EPS outlook, underscoring its solid positioning in the market. While 2Q26 guidance came in slightly ahead of consensus, it still reflects a continued year-over-year deceleration. Management flagged ongoing macroeconomic headwinds and noted signs of softening customer demand. Conversations with customers have also grown more cautious amid heightened economic uncertainty. Looking ahead, business sentiment in the U.S. has shown modest improvement as concerns over tariffs begin to ease, which could offer a potential tailwind for Okta. 2Q26recommended trading range: $100 to $125. Neutral Outlook.
