Meituan reported second-quarter 2026 results on August 28, swinging to quarterly profitability with net profit of about 2.16 billion yuan after a 6.83 billion yuan first-quarter loss, a 490% year-over-year surge from 365 million yuan a year earlier. Revenue rose 14.4% to roughly 104.6 billion yuan. Core local commerce revenue grew 10.1% to 71.53 billion yuan with a 7.9% operating margin, helped by delivery services revenue up 13.1% to 26.8 billion yuan and merchandise sales related to self-operated categories such as pharmaceuticals and alcohol up 78.9% to 3.6 billion yuan. New initiatives revenue rose 25% to 33.11 billion yuan as operating losses narrowed to 1.7 billion yuan. Xiaoxiang Supermarket reached 68 cities, Happy Monkey counted 40 offline stores, and Keeta achieved stable profitability in Hong Kong while efficiency improved in the Middle East. R&D spending climbed 22.5% to 7.7 billion yuan, or 7.3% of revenue, mainly to strengthen AI, alongside product launches including LongCat-2.0 and the rider safety assistant Tuanbao. Gross profit of 35.09 billion yuan beat market expectations, and both major segments topped consensus as Meituan emphasized a Retail plus Technology strategy amid more rational industry competition.