JD.com, Inc.

Q2 total revenue was RMB 346 billion, down 2.9% year over year. Non-GAAP net income attributable to ordinary shareholders was RMB 8.9 billion, up 20.8% year over year, and non-GAAP net margin expanded by 0.5 percentage points to 2.6%. JD Retail revenue was RMB 295 billion, down 4.7% year over year; JD Retail gross margin rose 1.3 percentage points to 18.5%, and non-GAAP operating margin increased 7 basis points to 4.6% with operating profit of RMB 13.5 billion. JD Logistics revenue was RMB 64.1 billion, up 24.3% year over year, with non-GAAP operating income of RMB 2.3 billion and a 3.5% margin. New Businesses revenue was RMB 7.3 billion, and operating loss narrowed to RMB 9.9 billion. Last-12-month free cash flow was RMB 31 billion, up from RMB 10 billion a year ago; cash and cash equivalents, restricted cash and short-term investments totaled RMB 235 billion. For capital returns, JD repurchased about 69.9 million Class A ordinary shares in the first half for USD 1 billion, about 2.5% of shares outstanding as of Dec. 31, 2025.

Sandy Xu framed the quarter as a turning point, saying JD maintained resilience despite macro and industry headwinds and achieved ‘high-quality development’ through profitability expansion. She emphasized that JD Retail’s margins hit record levels for a peak promotional season, Food Delivery cut losses sharply, and user engagement improved even as marketing spend was streamlined. Her tone was confident and forward-looking, especially around JD Retail’s expected top-line reacceleration in the second half and the company’s AI and automation investments.

Ian Shan highlighted the financial mix: revenue was pressured by a high comparison base in electronics and home appliances, but profitability improved materially, with non-GAAP net income up 20.8% to RMB 8.9 billion and group gross margin up 1.2 percentage points to 17.1%. He noted JD Retail’s 17th straight quarter of gross margin expansion, operating profit of RMB 13.5 billion, and a marketing expense ratio that fell for the fourth consecutive quarter. On liquidity, he cited RMB 31 billion of last-12-month free cash flow and RMB 235 billion of cash and investments, and he pointed to ongoing buybacks under the remaining roughly USD 1 billion authorization.

Analysts pressed management on second-half growth for electronics/home appliances, general merchandise, food delivery economics, ad revenue, free cash flow, and whether JD would set a more formal shareholder return ratio. Management said electronics and appliances should improve as the high-base drag eases, supply chain management helps offset pricing pressure, and AI-enabled product innovation supports long-term competitiveness. On food delivery, they said losses narrowed by over 50% and further year-over-year loss reduction is expected in the second half; on advertising, they expect faster growth as traffic expands, general merchandise mix improves, and AI boosts ad efficiency. For returns, JD declined to set a fixed payout ratio but reiterated commitment to dividends and buybacks.