JD.com, Inc. American Depositary Shares
JD · Nasdaq
Next quarter
Expected to report Nov 12, 2026 — estimated from last year’s reporting date.
Consensus is $0.88 EPS for Sep 2026 across 1 estimates, ranging $0.88 to $0.88.
JD Jun 2026
- 7.79%
- $0.77
- $0.83
- —
- —
Highlights
- Earnings beat: Reported EPS was 0.83 versus 0.77 consensus, a 7.79% surprise.
- Profit inflection: GAAP operating income reached RMB4.5 billion from a RMB0.9 billion loss a year earlier; operating margin improved to 1.3% from negative 0.2%.
- Revenue pressure: Net revenue declined 2.9% year-on-year to RMB346.4 billion, reflecting a high comparison base; product revenue fell 5.4%, partly offset by 6.8% growth in service revenue.
- Core retail resilience: JD Retail operating income was RMB13.5 billion versus RMB13.9 billion a year earlier, while its operating margin rose to 4.6% from 4.5%, a record for a peak promotional season.
- New-business losses narrowed: New Businesses operating loss improved to RMB9.9 billion from RMB14.8 billion, mainly due to lower investment in JD Food Delivery.
- Bottom-line growth: Net income attributable to ordinary shareholders rose 15.4% to RMB7.1 billion, while non-GAAP net income increased 20.8% to RMB8.9 billion; non-GAAP net margin expanded to 2.6% from 2.1%.
- Cash returns: First-half share repurchases totaled US$1.0 billion, or approximately 2.5% of ordinary shares outstanding; US$1.0 billion remained under the US$5.0 billion authorization.
- Cash generation: Second-quarter free cash flow increased to RMB31.8 billion from RMB22.0 billion, and trailing-twelve-month free cash flow reached RMB31.4 billion versus RMB10.1 billion a year earlier.
Analysis
JD.com’s second quarter was a profit-recovery quarter rather than a top-line growth quarter. Reported EPS of 0.83 exceeded the 0.77 consensus by 7.79%, while revenue fell 2.9% year-on-year to RMB346.4 billion on a high base. GAAP operating income swung to RMB4.5 billion from a RMB0.9 billion loss, and net income attributable to ordinary shareholders rose 15.4% to RMB7.1 billion. Against the first quarter, revenue increased approximately 9.7% to reflect seasonal promotion activity, while operating income declined approximately 16.3% from RMB3.8 billion and attributable net income rose approximately 39.7% from RMB5.1 billion.
The print was defined by margin discipline in the core retail business and a sharp reduction in losses outside it. JD Retail’s operating income was broadly stable at RMB13.5 billion, but its margin improved to 4.6% as marketplace and marketing revenue grew 8.3% and marketing expense fell 24.8%. New Businesses reduced its operating loss by RMB4.9 billion year-on-year to RMB9.9 billion, primarily through lower JD Food Delivery investment. The company also generated RMB31.8 billion of quarterly free cash flow and repurchased approximately 2.5% of its shares in the first half, although fulfillment costs rose 10.4% and research and development spending increased 37.7%.
Revenue and cost mix
Revenue contracted despite stronger service activity, with the decline concentrated in product sales. JD’s cost actions and mix shift more than offset the revenue pressure at the operating level.
- Revenue composition: Product revenue fell 5.4% to RMB267.1 billion, including an 11.8% decline in electronics and home appliances revenue to RMB157.9 billion. General merchandise revenue rose 5.6% to RMB109.2 billion.
- Services: Service revenue increased 6.8% to RMB79.3 billion. Marketplace and marketing revenue rose 8.3% to RMB30.9 billion, while logistics and other service revenue grew 5.9% to RMB48.4 billion.
- Operating costs: Cost of revenue declined 4.3% to RMB287.1 billion. Marketing expense fell 24.8% to RMB20.3 billion, offsetting a 10.4% increase in fulfillment expense to RMB24.5 billion and a 37.7% increase in R&D expense to RMB7.3 billion.
- Margins: Non-GAAP operating income increased to RMB5.5 billion from RMB0.9 billion, lifting non-GAAP operating margin to 1.6% from 0.3%. Non-GAAP EBITDA rose to RMB7.9 billion from RMB3.0 billion.
JD Retail profitability
JD Retail remained the earnings anchor. Profit was slightly lower in absolute terms, but the margin improved as higher-margin marketplace and marketing activity outperformed product revenue.
- Core result: JD Retail revenue was RMB295.4 billion, down 4.7% year-on-year, while operating income was RMB13.5 billion versus RMB13.9 billion.
- Margin: Retail operating margin increased to 4.6% from 4.5%; management described this as a record margin for a peak promotional season.
- Commercial initiatives: JD MALL reached 30 operating stores by quarter-end, while approximately 2,000 fashion brands doubled transaction value year-on-year during the JD 618 promotion.
- AI commerce: JoyInside had partnerships with nearly 200 brands, and the cumulative number of connected devices had increased more than threefold from the 2025 JD 11.11 promotion.
New-business losses
The principal improvement below the segment level came from New Businesses, where lower spending on JD Food Delivery materially reduced losses. The segment remains deeply loss-making as overseas and other initiatives continue to develop.
- Loss reduction: New Businesses’ operating loss narrowed to RMB9.9 billion from RMB14.8 billion, improving the segment margin to negative 135.7% from negative 106.7% because of the smaller revenue base.
- Food Delivery: JD said the investment in JD Food Delivery narrowed significantly year-on-year through improved operational efficiency and revenue diversification.
- Other initiatives: Joybuy, JD’s European online retail business, held a Summer Black Friday campaign featuring home appliances and technology products with integrated delivery and installation.
- Segment context: New Businesses revenue fell 47.6% to RMB7.3 billion, partly reflecting the reclassification of on-demand delivery activity into JD Logistics after the October 2025 acquisition and January 2026 operating changes.
Logistics and technology
JD Logistics delivered growth while continuing to invest in fulfillment capacity and automation. The investment contributed to higher group fulfillment costs but also supported external logistics expansion.
- JD Logistics: Revenue increased 24.3% to RMB64.1 billion, while operating income rose to RMB2.3 billion from RMB2.0 billion; operating margin was 3.5% versus 3.8%.
- Automation: JD Logistics had deployed thousands of unmanned vehicles across more than 20 provinces and launched its first night-time autonomous delivery routes in Shenzhen.
- Health and industrial AI: JD Health’s Dr. Da Wei AI agent served nearly four times as many users year-on-year during the JD 618 promotion. JD Industrials deployed more than 70 AI agents across procurement and fulfillment in the first half.
- Investment: R&D expense increased to RMB7.3 billion, or 2.1% of revenue, from RMB5.3 billion, or 1.5%, as JD continued investing in technology and talent.
Cash flow and capital returns
The quarter produced substantially stronger cash generation, supporting continued shareholder distributions despite higher infrastructure spending and other financing outflows.
- Free cash flow: Quarterly free cash flow rose to RMB31.8 billion from RMB22.0 billion, even as capital expenditures increased to RMB5.5 billion from RMB3.0 billion.
- Liquidity: Cash, restricted cash and short-term investments totaled RMB235.1 billion at June 30, up from RMB225.4 billion at December 31, 2025.
- Repurchases: JD repurchased approximately 69.9 million Class A shares, equivalent to 34.9 million ADSs, for US$1.0 billion in the first half. The remaining authorization was US$1.0 billion.
- Regulatory charge: The company disclosed a RMB635 million SAMR penalty related to compliance deficiencies involving third-party cake shops and order-transfer service providers; the charge was excluded from non-GAAP results.
