Q2 FY2026
Filed Aug 13, 2026Net revenues declined 2.9% to RMB346.4 billion, while income from operations improved to RMB4.5 billion from a RMB0.9 billion loss and non-GAAP net income attributable to ordinary shareholders rose to RMB8.9 billion.
Revenue declined on a high base effect and electronics and home appliances revenue fell, but service revenue growth, lower marketing expense, improved JD Retail mix, and a narrower New Businesses loss drove substantial operating and net-income improvement.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenuesGAAP | RMB346.4 billion (US$51.1 billion) | – | decrease of 2.9% |
| Net product revenuesGAAP | RMB267.1 billion (US$39.4 billion) | – | decreased by 5.4% |
| Net service revenuesGAAP | RMB79.3 billion (US$11.7 billion) | – | increased by 6.8% |
| Electronics and home appliances revenuesGAAP | RMB157,886 million (US$23,270 million) | – | (11.8)% |
| General merchandise revenuesGAAP | RMB109,229 million (US$16,098 million) | – | 5.6% |
| Marketplace and marketing revenuesGAAP | RMB30,860 million (US$4,548 million) | – | 8.3% |
| Logistics and other service revenuesGAAP | RMB48,426 million (US$7,137 million) | – | 5.9% |
| Cost of revenuesGAAP | RMB287.1 billion (US$42.3 billion) | – | decreased by 4.3% |
| Fulfillment expensesGAAP | RMB24.5 billion (US$3.6 billion) | – | increased by 10.4% |
| Fulfillment expenses as a percentage of net revenuesGAAP | 7.1% | – | – |
| Marketing expensesGAAP | RMB20.3 billion (US$3.0 billion) | – | decreased by 24.8% |
| Marketing expenses as a percentage of net revenuesGAAP | 5.9% | – | – |
| Research and development expensesGAAP | RMB7.3 billion (US$1.1 billion) | – | increased by 37.7% |
| Research and development expenses as a percentage of net revenuesGAAP | 2.1% | – | – |
| General and administrative expensesGAAP | RMB3.1 billion (US$0.5 billion) | – | decreased by 4.7% |
| General and administrative expenses as a percentage of net revenuesGAAP | 0.9% | – | – |
| Income from operationsGAAP | RMB4.5 billion (US$0.7 billion) | – | – |
| Operating marginGAAP | 1.3% | – | – |
| Non-GAAP income from operationsnon-GAAP | RMB5.5 billion (US$0.8 billion) | – | – |
| Non-GAAP operating marginnon-GAAP | 1.6% | – | – |
| Non-GAAP EBITDAnon-GAAP | RMB7.9 billion (US$1.2 billion) | – | – |
| Non-GAAP EBITDA marginnon-GAAP | 2.3% | – | – |
| Net income attributable to the Company’s ordinary shareholdersGAAP | RMB7.1 billion (US$1.1 billion) | – | – |
| Net margin attributable to the Company’s ordinary shareholdersGAAP | 2.1% | – | – |
| Non-GAAP net income attributable to the Company’s ordinary shareholdersnon-GAAP | RMB8.9 billion (US$1.3 billion) | – | – |
| Non-GAAP net margin attributable to the Company’s ordinary shareholdersnon-GAAP | 2.6% | – | – |
| Diluted net income per ADSGAAP | RMB5.01 (US$0.74) | – | – |
| Non-GAAP diluted net income per ADSnon-GAAP | RMB6.29 (US$0.93) | – | – |
| Free cash flownon-GAAP | RMB31,835 million (US$4,692 million) | – | – |
| Net cash provided by operating activitiesGAAP | RMB37,718 million (US$5,559 million) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| JD RetailThe Company cited margin improvement in certain key categories and a favorable revenue mix as high-margin marketplace and marketing revenues continued to outperform. | RMB295,383 million (US$43,534 million) | – | (4.7)% |
| JD LogisticsJD Logistics shifted on-demand delivery services to directly serve third-party merchants on the Company’s platform effective January 2026, changing internal and external revenue classification. | RMB64,102 million (US$9,447 million) | – | 24.3% |
| New BusinessesJD Food Delivery investment size narrowed significantly year-on-year, primarily driven by improved operational efficiency and revenue diversification. | RMB7,260 million (US$1,070 million) | – | (47.6)% |
Capital returns
- 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 amounted to approximately 2.5% of ordinary shares outstanding as of December 31, 2025.
- The remaining amount under the share repurchase program was US$1.0 billion as of June 30, 2026.
- The share repurchase program is up to US$5.0 billion, was adopted in August 2024, and is effective through August 2027.
What drove it
- Net product revenues decreased by 5.4%, primarily due to a high base effect in the second quarter of 2025.
- Net service revenues increased by 6.8%.
- Marketing expenses decreased by 24.8%, primarily due to the optimization of promotional spending on new business initiatives.
- Fulfillment expenses increased by 10.4% as the Company upgraded fulfillment capabilities and invested in human capital to enhance user experience while building operational infrastructure for new business initiatives.
- Research and development expenses increased by 37.7% as the Company continued to invest in technology capabilities and talents.
- New Businesses loss from operations narrowed to RMB9,854 million from RMB14,777 million.
Concerns
- Total net revenues decreased by 2.9%.
- Electronics and home appliances revenues decreased by 11.8%.
- Fulfillment expenses as a percentage of net revenues increased to 7.1% from 6.2%.
- Research and development expenses as a percentage of net revenues increased to 2.1% from 1.5%.
- New Businesses reported a loss from operations of RMB9,854 million (US$1,452 million) and an operating margin of (135.7)%.
- The State Administration for Market Regulation imposed a total penalty of approximately RMB635 million on a consolidated affiliated entity of JD.com.
What to watch
- Whether net service revenue growth of 6.8%, including marketplace and marketing revenue growth of 8.3% and logistics and other service revenue growth of 5.9%, continues to offset product-revenue pressure.
- JD Retail profitability after its operating margin reached 4.6% during the peak promotional season.
- The pace of loss reduction at JD Food Delivery and the development of Joybuy and Jingxi.
- Fulfillment and research and development investment levels relative to revenue.
- Execution of the remaining US$1.0 billion under the share repurchase program.
Balance sheet and cash flow
- Cash and cash equivalents, restricted cash and short-term investments totaled RMB235.1 billion (US$34.6 billion) as of June 30, 2026, compared to RMB225.4 billion as of December 31, 2025.
- Cash and cash equivalents were RMB89,068 million (US$13,127 million) as of June 30, 2026, compared to RMB137,488 million as of December 31, 2025.
- Short-term investments were RMB132,594 million (US$19,542 million) as of June 30, 2026, compared to RMB75,744 million as of December 31, 2025.
- Short-term debts were RMB3,534 million (US$521 million) as of June 30, 2026, compared to RMB8,014 million as of December 31, 2025.
- Unsecured senior notes were RMB13,555 million (US$1,998 million) current and RMB16,607 million (US$2,448 million) non-current as of June 30, 2026.
- Long-term debts were RMB36,196 million (US$5,335 million) as of June 30, 2026, compared to RMB41,675 million as of December 31, 2025.
- Net cash used in investing activities was RMB29.5 billion (US$4.4 billion) for the second quarter of 2026.
- Net cash used in financing activities was RMB19.9 billion (US$2.9 billion) for the second quarter of 2026.
- Capital expenditures, net of related sales proceeds, were RMB5,520 million (US$814 million) for the second quarter of 2026, compared to RMB3,032 million for the second quarter of 2025.
Analysis
JD.com reported a softer top line but materially improved profitability in the second quarter of 2026. Net revenues decreased 2.9% to RMB346.4 billion (US$51.1 billion), which the Company attributed primarily to a high base effect. Product revenue decreased 5.4%, led by an 11.8% decline in electronics and home appliances revenues. This was partly offset by 6.8% growth in service revenue, with marketplace and marketing revenues up 8.3% and logistics and other service revenues up 5.9%.
The cost and mix profile supported a return to operating profitability. Income from operations was RMB4.5 billion (US$0.7 billion), compared with a RMB0.9 billion loss a year earlier, and operating margin was 1.3% compared with negative 0.2%. Non-GAAP income from operations rose to RMB5.5 billion (US$0.8 billion) from RMB0.9 billion, while non-GAAP EBITDA increased to RMB7.9 billion (US$1.2 billion) from RMB3.0 billion. Marketing expense declined 24.8% following optimization of promotional spending on new business initiatives, although fulfillment expense increased 10.4% and research and development expense increased 37.7%.
JD Retail revenue declined 4.7% to RMB295,383 million (US$43,534 million), but its income from operations was RMB13.5 billion (US$2.0 billion) and its operating margin expanded to 4.6% from 4.5%. Management attributed the margin result to improvement in certain key categories and a favorable mix as high-margin marketplace and marketing revenue outperformed. JD Logistics grew revenue 24.3% to RMB64,102 million (US$9,447 million). New Businesses revenue decreased 47.6% to RMB7,260 million (US$1,070 million), while its loss from operations narrowed to RMB9,854 million from RMB14,777 million, primarily reflecting loss reduction at JD Food Delivery.
Net income attributable to the Company’s ordinary shareholders increased to RMB7.1 billion (US$1.1 billion) from RMB6.2 billion, and non-GAAP net income increased to RMB8.9 billion (US$1.3 billion) from RMB7.4 billion. Free cash flow rose to RMB31,835 million (US$4,692 million) from RMB22,018 million. Liquidity totaled RMB235.1 billion (US$34.6 billion) across cash, restricted cash and short-term investments. The Company also repurchased US$1.0 billion of shares in the first half, representing approximately 2.5% of ordinary shares outstanding as of December 31, 2025.
The filing provided no quantitative financial outlook. Attention therefore centers on whether service revenue momentum and JD Retail mix can sustain the profit improvement while the Company continues investment in fulfillment, technology, JD Food Delivery, Joybuy and Jingxi. The RMB635 million SAMR penalty was included among the second-half operating reconciliations, while the remaining authorization under the repurchase program was US$1.0 billion as of June 30, 2026.
Management, verbatim
Despite near-term revenue headwinds, we achieved strong bottom-line growth, marking a clear inflection in our profit trajectory.
Sandy Xu, Chief Executive Officer of JD.com
JD Retail’s operating margin hit a record high for peak promotional seasons.
Ian Su Shan, Chief Financial Officer of JD.com
Not in the filing
stated, not guessed- Quantitative forward guidance
- Prior-release outlook for comparison
- Reported gross margin
- Reported dividend amount
- Explicit prior-quarter comparisons for reported quarterly financial metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.