Meituan Q2 Profit Surges 69% on Core Business Turnaround, Keeta Hits Profitability in HK
On.cc · 2 SOURCESabout 2 hours ago2 MIN
Summary
Meituan delivered a stellar second quarter with adjusted net profit surging 69% year-on-year to 25.24 billion yuan, significantly outpacing market expectations of 3.40 billion yuan . Total revenue reached a record 104.643 billion yuan, up 14.4% from the same period last year, surpassing the analyst consensus of 101.079 billion yuan . The company's core local commerce division swung to an operating profit of 56.8 billion yuan with a 7.9% profit margin, marking a significant turnaround for the food delivery business . Meituan's international platform Keeta achieved stable profitability in Hong Kong and reached profitability in Saudi Arabia within just 22 months of launching operations .
Key Points
- Meituan's core local commerce revenue grew 10.1% year-on-year to 71.5 billion yuan, driven by a 13.1% increase in delivery service revenue to 26.8 billion yuan
- Self-operated categories including medicine and alcohol sales surged 78.9% year-on-year to 3.6 billion yuan, reflecting strong consumer demand
- The new business segment saw revenue rise 25% to 33.1 billion yuan with operating losses narrowing to 17 billion yuan and loss margin improving to 5.3%
- Keeta launched in Saudi Arabia and achieved profitability in July 2026, just 22 months after entering the market
- Meituan's AI model LongCat 2.0 became the industry's first trillion-parameter model trained entirely on domestic computing infrastructure
Why It Matters
Meituan's strong Q2 results demonstrate the company's successful pivot from aggressive expansion to profitability-focused operations in China's competitive food delivery market . The turnaround of the core delivery business and international expansion of Keeta signal Meituan's ability to achieve sustainable growth while managing costs, setting a benchmark for the industry as competitors face pressure to normalize subsidy levels .
Meituan's strong Q2 results demonstrate the company's successful pivot from aggressive expansion to profitability-focused operations in China's competitive food delivery market . The turnaround of the core delivery business and international expansion of Keeta signal Meituan's ability to achieve sustainable growth while managing costs, setting a benchmark for the industry as competitors face pressure to normalize subsidy levels .