Meituan returned to profit in the second quarter, snapping a three-quarter streak of losses as China's top food-delivery company recovered from a price war. The Beijing-based platform reported a net profit of 2.155 billion yuan ($320.6 million) for the three months ended June, compared with a 6.82 billion yuan loss in the first quarter and a 365 million yuan profit in the year-ago period. Revenue jumped 14% from a year earlier to 104.64 billion yuan, accelerating from 5.6% growth in the previous quarter. Both figures beat market expectations, with analysts having estimated a net loss of 1.43 billion yuan on revenue of 101.56 billion yuan.

"As the food-delivery industry gradually shifted back to operational efficiency, both our order mix and user mix continued to improve," Meituan said. Revenue from the core local commerce segment rose 10%, helping the company turn an operating profit. The new initiatives division, which includes overseas businesses, narrowed operating losses as revenue climbed 25%, with the Keeta platform maintaining robust growth momentum.

In Hong Kong, the business achieved stable profitability, while the Middle East market saw sequential efficiency improvements. DBS analysts raised their 2026 and 2027 earnings forecasts by 4% and 6%, respectively. China Galaxy International noted that unit economics at Meituan's food-delivery unit likely turned profitable as it cut subsidies. Meituan's Hong Kong-listed shares were unchanged ahead of results, leaving year-to-date losses at about 25%.