JD.com Posts Q2 Revenue Decline

JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter), the “Company” or “JD.com”), a leading supply chain-based technology and service provider, today announced its unaudited financial results for the three and six months ended June 30, 2026.

Second Quarter 2026 Highlights

• Net revenues were RMB346.4 billion (US$1 51.1 billion) for the second quarter of 2026, a decrease of 2.9% from the second quarter of 2025, primarily due to a high base effect.
  
  
• Income from operations was RMB4.5 billion (US$0.7 billion) for the second quarter of 2026, compared to a loss of RMB0.9 billion for the second quarter of 2025. Operating margin was 1.3% for the second quarter of 2026, compared to negative 0.2% for the second quarter of 2025. Non-GAAP2 income from operations was RMB5.5 billion (US$0.8 billion) for the second quarter of 2026, compared to RMB0.9 billion for the second quarter of 2025. Non-GAAP operating margin was 1.6% for the second quarter of 2026, compared to 0.3% for the second quarter of 2025.
  
  
• Net income attributable to the Company’s ordinary shareholders was RMB7.1 billion (US$1.1 billion) for the second quarter of 2026, compared to RMB6.2 billion for the second quarter of 2025. Net margin attributable to the Company’s ordinary shareholders was 2.1% for the second quarter of 2026, compared to 1.7% for the second quarter of 2025. Non-GAAP net income attributable to the Company’s ordinary shareholders was RMB8.9 billion (US$1.3 billion) for the second quarter of 2026, compared to RMB7.4 billion for the second quarter of 2025. Non-GAAP net margin attributable to the Company’s ordinary shareholders was 2.6% for the second quarter of 2026, compared to 2.1% for the second quarter of 2025.
  
  
• Diluted net income per ADS3 was RMB5.01 (US$0.74) for the second quarter of 2026, compared to RMB4.15 for the second quarter of 2025. Non-GAAP diluted net income per ADS was RMB6.29 (US$0.93) for the second quarter of 2026, compared to RMB4.97 for the second quarter of 2025.
  
  
• JD Retail reported income from operations of RMB13.5 billion (US$2.0 billion) for the second quarter of 2026, compared to RMB13.9 billion for the second quarter of 2025. Operating margin of JD Retail was 4.6% for the second quarter of 2026, compared to 4.5% for the second quarter of 2025.

“Our second quarter results reflect our resilient and high-quality operations,” said Sandy Xu, Chief Executive Officer of JD.com. “Despite near-term revenue headwinds, we achieved strong bottom-line growth, marking a clear inflection in our profit trajectory. This improvement was primarily driven by solid profitability in our core JD Retail business and continued narrowing of loss at JD Food Delivery. These results underscore the resilience of our supply chain-driven business model and our team’s focus on operational efficiency—strengths that we will continue to build upon for unlocking further potential as we navigate the second half of the year.”

“We delivered solid profitability in the second quarter despite moderating top-line momentum,” said Ian Su Shan, Chief Financial Officer of JD.com. “JD Retail’s operating margin hit a record high for peak promotional seasons. This performance was driven by margin improvement in certain key categories, as well as a favorable revenue mix as high-margin marketplace and marketing revenues continued to outperform. Losses in our New Businesses segment narrowed significantly year-on-year, primarily driven by continued loss reduction at JD Food Delivery, while our strategic investments in Joybuy and Jingxi remained on track. Looking ahead, our robust business ecosystem will continue to underpin sustained business resilience and a healthy financial trajectory. Backed by our solid financial performance, we repurchased approximately 2.5% of our ordinary shares outstanding in the first half of the year, underscoring our commitment to delivering sustainable shareholder returns.”

Updates of Share Repurchase Program

Pursuant to the Company’s share repurchase program of up to US$5.0 billion adopted in August 2024 and effective through August 2027, the Company repurchased a total of approximately 69.9 million Class A ordinary shares (equivalent to 34.9 million ADSs) for a total of US$1.0 billion during the six months ended June 30, 2026. The total number of shares repurchased by the Company during the six months ended June 30, 2026 amounted to approximately 2.5% of its ordinary shares outstanding as of December 31, 20254.

All of these ordinary shares were repurchased from Nasdaq and the Hong Kong Stock Exchange pursuant to the share repurchase program. The remaining amount under the share repurchase program was US$1.0 billion as of June 30, 2026.

Business Highlights

• JD Retail:
  
  During this year’s JD 618 Grand Promotion, JD MALL stores were successively launched in Shanghai and Hong Kong. By the end of the second quarter, JD MALL had a total of 30 stores in operation, completing its strategic layout in high-tier cities across China.
  
  JD.com continues to deepen its strategic presence in the fashion sector, collaborating with business partners to drive high-quality development of the industry. JD.com has established itself as a premier online destination for international luxury beauty brands, with its guaranteed product authenticity, efficient logistics, and comprehensive services. On May 11, 2026, JD.com entered into a strategic partnership with French luxury brand CHANEL, launching the official CHANEL flagship store on the platform with a full range of the brand’s classic perfume, makeup, and skincare products, alongside JD-exclusive limited-edition items. Moving forward, JD Beauty and CHANEL will continue to deepen their collaboration and set new trends in luxury beauty consumption. Additionally, JD.com has emerged as one of the fastest-growing platforms for fashion brands. During this year’s JD 618 Grand Promotion, approximately 2,000 fashion brands doubled their transaction value year-on-year on the platform, while 42 fashion categories led the industry in growth, including women’s and men’s apparel, sportswear, outdoor gear, and gold and jewelry.
  
  On July 22, 2026, Costco entered into a partnership with JD.com, making JD.com its sole official e-commerce partner in China. Leveraging JD’s supply chain advantages, the Costco flagship store on JD’s platform brings a curated selection of high-quality global goods to consumers across China, with delivery available as fast as the same day.
  
  The advancement of AI technology has unlocked new consumption opportunities for JD.com. Leveraging the Company's proprietary JoyAI LLM, its AI agent for hardware, JoyInside, empowers AI toys, robotics, home appliances, and medical devices with intelligent interaction capabilities to tap into emerging consumption potential. As of this year’s JD 618 Grand Promotion, JoyInside has established partnerships with nearly 200 brands, with the cumulative number of connected devices surging over threefold compared to that as of last year's JD 11.11 Grand Promotion.

• JD Logistics:
  
  As of the second quarter of 2026, JD Logistics (“JDL”) had deployed thousands of unmanned vehicles into regular operations across more than 20 provinces nationwide. JDL launched its first “night-time autonomous delivery” routes in Shenzhen, enabling 24-hour uninterrupted vehicle operations. This effectively expands the geographical and operating-time boundaries for unmanned vehicle operations while unlocking further efficiency potential in last-mile fulfillment.

• JD Health:
  
  In the second quarter of 2026, JD Health (“JDH”) continued to drive service innovation and its integrated online-offline strategy, while accelerating AI deployment across business scenarios. In terms of offline business model innovation, in April, JDH launched its first integrated healthcare center in Beijing, covering physical examination, dental care, and medical aesthetics services. The clinic provides users with online post-examination health management, representing a strategic upgrade from one-time health checkups to diversified and continuous healthcare services. Regarding AI applications, JDH upgraded its AI agent “Dr. Da Wei”, powered by its proprietary “Jingyi Qianxun” healthcare LLM. “Dr. Da Wei” brings together full-spectrum capabilities including online consultations, at-home rapid testing, home care services, and medication fulfillment. During the JD 618 Grand Promotion, the number of users served by “Dr. Da Wei” grew nearly fourfold year-on-year, leading the transition of user behavior from one-off transactions to long-term health management.

• JD Industrials:
  
  During the second quarter of 2026, JD Industrials (“JDI”) continued to strengthen its end-to-end AI capabilities. Its LLM, JoyIndustrial, was upgraded from an AI tool to an AI expert, shifting focus toward comprehensive industrial deployment. In the first half of 2026, JDI deployed over 70 AI agents across the entire value chain from procurement to fulfillment, driving AI-powered growth and improving workforce efficiency. To address procurement pain points for micro, small and medium-sized customers, JDI introduced its AI-Powered Smart Procurement Assistant, enabling customers to conduct efficient product selection and price comparison through multimodal interactions, delivering a seamless “conversation-as-procurement” experience. Additionally, JDI launched the “Baichuan Initiative” in June, collaborating with leading brand partners to build vertical industry models, which transform scattered product manuals and massive data into structured, standardized datasets.

• New Businesses:
  
  In the second quarter of 2026, JD Food Delivery maintained high-quality development, with its investment size narrowing significantly year-on-year, primarily driven by improved operational efficiency and revenue diversification. Other new businesses also achieved steady development during the quarter. Joybuy, JD.com’s online retail business in Europe, launched its “Summer Black Friday” campaign in the quarter. During the event, quality home appliances and technology products saw surging sales, driven by the Company’s signature “Double 11” (211) delivery and integrated delivery-and-installation services.

• Environmental, Social and Governance
  
  As a testament to JD.com’s unwavering commitment to creating more jobs and making contribution to the society, the total personnel under the JD Ecosystem5 was over 900,000 as of June 30, 2026, including the Company’s employees, part-time staff and interns, as well as the personnel of the Company’s affiliates in the JD Ecosystem. The total expenditure for such human resources, together with the expenditure for external personnel who work for the JD Ecosystem, amounted to RMB171.7 billion for the twelve months ended June 30, 2026.

Second Quarter 2026 Financial Results

Net Revenues. Net revenues decreased by 2.9% to RMB346.4 billion (US$51.1 billion) for the second quarter of 2026 from RMB356.7 billion for the second quarter of 2025. Net product revenues decreased by 5.4%, primarily due to a high base effect in the second quarter of 2025, while net service revenues increased by 6.8% for the second quarter of 2026, compared to the second quarter of 2025.

Cost of Revenues. Cost of revenues decreased by 4.3% to RMB287.1 billion (US$42.3 billion) for the second quarter of 2026 from RMB300.0 billion for the second quarter of 2025.

Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 10.4% to RMB24.5 billion (US$3.6 billion) for the second quarter of 2026 from RMB22.1 billion for the second quarter of 2025. Fulfillment expenses as a percentage of net revenues was 7.1% for the second quarter of 2026, compared to 6.2% for the second quarter of 2025, as the Company continued to upgrade fulfillment capabilities and invest in human capital to enhance user experience while building the operational infrastructure for new business initiatives.

Marketing Expenses. Marketing expenses decreased by 24.8% to RMB20.3 billion (US$3.0 billion) for the second quarter of 2026 from RMB27.0 billion for the second quarter of 2025. Marketing expenses as a percentage of net revenues was 5.9% for the second quarter of 2026, compared to 7.6% for the second quarter of 2025, primarily due to the optimization of promotional spending on new business initiatives.

Research and Development Expenses. Research and development expenses increased by 37.7% to RMB7.3 billion (US$1.1 billion) for the second quarter of 2026 from RMB5.3 billion for the second quarter of 2025. Research and development expenses as a percentage of net revenues was 2.1% for the second quarter of 2026, compared to 1.5% for the second quarter of 2025, as the Company continued to invest in technology capabilities and talents.

General and Administrative Expenses. General and administrative expenses decreased by 4.7% to RMB3.1 billion (US$0.5 billion) for the second quarter of 2026 from RMB3.3 billion for the second quarter of 2025. General and administrative expenses as a percentage of net revenues remained stable at 0.9% for both the second quarter of 2026 and 2025.

Income from Operations and Non-GAAP Income from Operations. Income from operations for the second quarter of 2026 was RMB4.5 billion (US$0.7 billion), compared to a loss of RMB0.9 billion for the second quarter of 2025. Operating margin was 1.3% for the second quarter of 2026, compared to negative 0.2% for the second quarter of 2025. Non-GAAP income from operations was RMB5.5 billion (US$0.8 billion) for the second quarter of 2026, compared to RMB0.9 billion for the second quarter of 2025. Non-GAAP operating margin was 1.6% for the second quarter of 2026, compared to 0.3% for the second quarter of 2025.

Income from operations of JD Retail was RMB13.5 billion (US$2.0 billion) for the second quarter of 2026, compared to RMB13.9 billion for the second quarter of 2025. Operating margin of JD Retail for the second quarter of 2026 was 4.6%, compared to 4.5% for the second quarter of 2025.

Source : JD.com

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