By Tracy Qu

PDD Holdings is scheduled to report results for fourth quarter on Wednesday. Here is what you need to know:

NET PROFIT: The Chinese e-commerce giant's net profit was likely 28.05 billion yuan, equivalent to $4.08 billion, according to the consensus estimate of 10 analysts polled by FactSet. That would be 2.2% higher than 27.45 billion yuan a year earlier, much slower than the 17% growth recorded in the third quarter.

REVENUE: Quarterly revenue is expected at 123.40 billion yuan, according to FactSet, up 12% from a year ago. Revenue grew 9.0% in the third quarter and 7.1% in the second quarter.

U.S.-listed PDD fell 14% in the final quarter of 2025 amid a broad correction in Chinese technology stocks and has shed an additional 15% so far this year.

WHAT TO WATCH:

--TEMU: PDD's overseas platform likely recorded a solid sequential rebound in fourth-quarter gross merchandise value on stronger sales during the holiday shopping season and the normalization of tariff policy, according to Citi analysts. Temu's U.S. traffic is likely to have recovered, while sales in Europe are expected to have remained solid, the analysts wrote in a note.

--CHINA E-COMMERCE: PDD Holdings' domestic e-commerce business likely faced some headwinds in the fourth quarter, Citi said. The analysts said that revenue and profit growth at Pinduoduo, PDD's main platform, were likely weighed by increased support measures for merchants and the possible impact from e-commerce value-added tax. Analysts have noted that tax authorities in key e-commerce hubs, such as Guangdong and Zhejiang province, have tightened VAT collection since late last year.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

March 24, 2026 03:45 ET (07:45 GMT)

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