MEITUAN 2026 Q2
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance: Meituan reported Q2 2026 revenue of RMB 104.6 billion, up 14.4% year over year, with net profit turning positive. Total segment operating profit reached RMB 3.9 billion and adjusted net profit was RMB 2.5 billion. Core local commerce revenue rose 10.1% to RMB 71.5 billion, while new initiatives revenue increased 25% to RMB 33.1 billion. Cost discipline improved, with the cost of revenue ratio down to 66.5% and selling and marketing expenses ratio down to 23.6%, driven mainly by better marketing efficiency. Cash and cash equivalents plus short-term treasury investments totaled RMB 168.3 billion.

Company Outlook & Strategy: Management emphasized a “retail plus technology” strategy centered on high-quality growth, operational efficiency, and ecosystem building. The company expects food delivery unit economics to improve year over year in Q3, though sequentially they will be pressured by seasonality, higher marketing spend, courier subsidies, and the nationwide rollout of occupational injury insurance. Meituan plans to keep investing in AI, supply chain integration, premium supply, and merchant tools, while expanding in groceries, overseas markets, and local services. The long-term message was confident and disciplined, with a focus on becoming a “digital copilot” for merchants.

Key Industry Trends: Management said the quick commerce and food delivery industry is shifting from subsidy-led competition toward marketing efficiency, operating efficiency, quality, and innovation. They expect regulatory guidance to further normalize subsidy practices. In local services, consumer demand is moving from standardized offerings toward more personalized, experiential, and emotion-driven consumption. AI adoption is becoming increasingly important for both consumer decisions and merchant operations.

Operational Highlights: Meituan strengthened food delivery and Instashopping through better order mix, higher user quality, and improved retention, purchase frequency, and AOV. Instashopping remained a key growth engine, with strong new user acquisition and rapid growth in grocery retail. Xiaoxiang Supermarket expanded to 68 cities, private label products grew, and the offline footprint expanded with a third store opened in Hangzhou. KeeTa continued high growth, with Hong Kong reaching sustained profitability and the Middle East improving sequentially. The company also launched AI tools for merchants, expanded merchant support to 220,000 SMEs, broadened county-level programs, and rolled out nationwide courier injury insurance.

Challenges & Risks: Management noted that industry subsidy levels remain materially above 2024 levels and may take a few quarters to normalize. Q3 will face seasonal headwinds from peak delivery demand, higher courier subsidies, and increased marketing spend, which will pressure unit economics despite remaining positive. Grocery retail losses increased as the business scaled rapidly, and competitive pressure remains intense across food delivery, quick commerce, and local services. Broader macro softness and elevated comparisons from last year were also mentioned.

Key Analyst Questions & Responses: Analysts asked about food delivery and quick commerce competition, Meituan’s share in mid- to high-AOV orders, and Q3 unit economics. Management replied that the industry is shifting toward quality and efficiency, and Meituan’s advantages in user mix, order mix, and operational efficiency have strengthened. They said Meituan has extended its lead in order volume and GTV, especially in the mid- to high-AOV segment, and sees strong brand mindshare among premium users. For Q3, they expect food delivery UE to improve materially year over year but to soften sequentially due to seasonality, higher marketing, courier support, and insurance costs, while still remaining positive.