JD.com, Inc.

Q2 total revenue was RMB 346 billion, down 2.9% year over year. Non-GAAP net income attributable to ordinary shareholders rose 20.8% year over year to RMB 8.9 billion, and non-GAAP net margin increased 0.5 percentage points to 2.6%. JD Retail revenue was RMB 295 billion, down 4.7% year over year; JD Retail gross margin expanded 1.3 percentage points to 18.5%, and non-GAAP operating profit reached RMB 13.5 billion with operating margin at 4.6%. JD Logistics revenue grew 24.3% year over year to RMB 64.1 billion, with non-GAAP operating income of RMB 2.3 billion and operating margin of 3.5%. New Businesses revenue was RMB 7.3 billion and operating loss narrowed to RMB 9.9 billion. Service revenue grew 6.8%, marketplace and marketing revenue rose 8.3%, and logistics and other service revenue increased 5.9%. Last-12-month free cash flow as of quarter end was RMB 31 billion, up from RMB 10 billion in the prior year period, and cash, restricted cash and short-term investments totaled RMB 235 billion. For the second half, management said it expects JD Retail to return to positive revenue growth, group top-line growth to reaccelerate, and further profit expansion, while JD Food Delivery should see continued meaningful year-over-year loss reduction.

Sandy Xu framed Q2 as a quarter of steady execution and a clear inflection in profitability, emphasizing resilience despite macro and industry headwinds. She highlighted stronger user engagement, record June 18 promotion participation, and the move from broad user acquisition toward higher user quality and lifetime value. Her strategic message centered on supply-chain strength, disciplined marketing, food delivery synergies, and AI-driven efficiency across the business.

Ian Shan focused on the numbers behind the margin improvement: revenue was RMB 346 billion, down 2.9%, but non-GAAP net income rose to RMB 8.9 billion with net margin at 2.6%. He pointed to JD Retail gross margin of 18.5%, operating margin of 4.6%, group gross margin of 17.1%, and operating expense down 4.4% year over year. He also highlighted stronger liquidity and cash generation, with last-12-month free cash flow of RMB 31 billion and cash plus short-term investments of RMB 235 billion, and noted that the company repurchased about 69.9 million Class A shares for USD 1 billion in the first half under the existing USD 5 billion authorization.

Analysts pressed management on the outlook for electronics and home appliances, the moderation in general merchandise growth, shareholder returns, Joybuy’s strategy and investment pace, food delivery synergies, and advertising revenue growth. Management said electronics and home appliances should improve in the second half as the high comparison base fades, supply-chain capabilities offset price pressure, and AI-enabled product innovation supports demand. For general merchandise and advertising, management pointed to improving conversion, stronger 1P supply chain capabilities, traffic from new businesses, and a faster contribution from higher-monetizing categories; on buybacks, they said they remain committed to shareholder returns and are executing the existing repurchase program. Joybuy was described as early-stage but gaining traction in Europe, with same-day/next-day delivery and installation services helping revenue double within two quarters, while food delivery was said to have cut losses by over 50% and still has room for further unit-economics improvement.