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    JD
    Earnings call· Jun 2026(Q2 FY26)

    JD.com Q2 FY26 earnings call JD

    Aug 13, 2026 Source

    Executive summary

    JD.com Q2 FY26 — Robust Profitability Amidst Macro Headwinds

    JD.com delivered robust profitability in Q2 FY26, with non-GAAP net income up 20.8% year-on-year, driven by record margins in JD Retail and significant loss reduction in JD Food Delivery. Despite a slight revenue decline due to macro and category-specific headwinds, the company maintained healthy user momentum and is confident in reaccelerating top-line growth in H2 FY26 through supply chain strength and AI integration. Strategic investments in new businesses are managed with strict financial discipline.

    Highlights

    5

    • Non-GAAP net income attributable to ordinary shareholders surged by 20.8% year-on-year to RMB 8.9 billion.

    • JD Retail's gross margin expanded by 1.3 percentage points year-on-year to 18.5%, hitting a historic high for peak promotional seasons.

    • JD Retail's operating margin increased by 7 basis points to 4.6%, setting a new record for a peak promotional quarter.

    • JD Food Delivery narrowed its losses by over 50% year-on-year.

    • User momentum maintained double-digit year-on-year growth across MAU, quarterly active customers, and Plus members.

    Concerns

    4

    • Total revenues decreased slightly by 2.9% year-on-year to RMB 346 billion due to near-term category dynamics.

    • Revenues from electronics and home appliances were moderated by a high comparison base and upstream price increases.

    • General merchandise growth moderated in Q2 due to a high base from last year's trade-in program.

    • Joybuy's absolute operating loss expanded as it entered a rapid scaling phase, despite its loss margin narrowing sequentially.

    Guidance & targets

    8
    CategoryTargetConfidence
    JD Retail Revenue Growth
    reaccelerating into positive top line expansion
    high materiality
    High
    Electronics and Home Appliances Top Line Growth
    accelerate from the first half
    medium materiality
    High
    JD Retail Overall Growth
    accelerate quarter-by-quarter
    high materiality
    High
    JD Retail Operating Margin
    high single-digit margin
    high materiality
    High
    JD Food Delivery Loss Reduction
    further efficiency gains and a substantial narrowing of year-on-year losses
    medium materiality
    High
    Joybuy Investment
    invest at a measured pace and keep total investment for the business steady and within our control
    low materiality
    High
    Group-level Profit Growth
    accelerated profit growth
    high materiality
    High
    Group-level Profit Expansion
    steady long-term profit expansion
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    JD Retail
    Revenues were in line with expectations as the segment navigated category-specific base effects and market dynamics. Momentum picked up in June, and the company expects a pivot back to positive revenue growth in Q3. Gross margin expansion marks the 17th consecutive quarter of year-on-year improvement.
    Gross margin: 18.5%Gross margin expansion: 1.3 percentage points year-on-yearOperating margin: 4.6%Operating margin increase: 7 basis points
    		RMB 295 billiondown 4.7%—non-GAAP operating profit reached RMB 13.5 billion
    JD Logistics
    Revenue growth was primarily driven by incremental contribution from on-demand delivery service. Near-term margin fluctuations were mainly attributable to Deppon, while the rest of JD Logistics' business maintained a healthy profitability trajectory.
    Non-GAAP operating income growth: 15.6% year-on-yearOperating margin: 3.5%
    		RMB 64.1 billion24.3%—non-GAAP operating income reached RMB 2.3 billion
    New Businesses
    Profitability improved notably, primarily driven by JD Food Delivery's loss reduction through optimized unit economics, streamlined operations, revenue diversification, and strict ROI discipline. Investments in Joybuy and Jingxi progressed in line with strategic roadmap.
    JD Food Delivery loss reduction: more than 50% year-on-year
    		RMB 7.3 billiondecline was driven by the shifting of recognition of on-demand delivery revenues from New Businesses to JD Logistics, which took effect in Q1 2026—operating loss narrowing significantly year-on-year to RMB 9.9 billion

    Operational metrics

    27
    Non-GAAP Net Income Attributable to Ordinary Shareholders
    RMB 8.9 billion20.8% year-on-year
    Q2 FY26

    Driven by JD Retail's healthy margin expansion and JD Food Delivery's loss reduction.

    MAU Growth
    double-digit year-on-year growth
    Q2 FY26

    Sustained healthy user momentum while streamlining group level marketing expenses.

    Quarterly Active Customers Growth
    double-digit year-on-year growth
    Q2 FY26

    Sustained healthy user momentum primarily driven by deeper engagement among existing users.

    Plus Members Growth
    double-digit year-on-year growth
    Q2 FY26

    Sustained healthy user momentum.

    Home Services Revenue Growth
    exponentially year-on-year
    Q2 FY26

    Contributed to deeper user engagement and stickiness.

    JD Auto Service Offline Stores Coverage
    over 1,000
    as of Q2 FY26

    Part of diversified services catering to users' life needs.

    Supermarket Category Revenue Growth
    near double-digit year-on-year
    Q2 FY26

    Remained a key standout and resilient growth anchor within general merchandise.

    Health Care (General Merchandise) Growth
    solid double-digit growth
    Q2 FY26

    Part of other general merchandise categories delivering strong performance.

    Industrial Products (General Merchandise) Growth
    solid double-digit growth
    Q2 FY26

    Part of other general merchandise categories delivering strong performance.

    JD Retail Marketing Expense Ratio
    dropped year-on-yearfourth consecutive quarter
    Q2 FY26

    Reflects ROI-driven marketing spend, contributing to profitability improvement.

    Joybuy Revenue Growth
    doubled
    within 2 quarters

    Driven by fast, reliable fulfillment and premium localized services.

    Jingxi Quarterly Active Customers (QAC) Growth
    over 40%
    year-on-year

    Deepening penetration in lower-tier markets, contributing to new active customers.

    Jingxi New Active Customers Contribution
    40%
    Q2 FY26

    Unlocking valuable incremental user pools for the ecosystem.

    Total Operating Expense Decrease
    4.4%
    year-on-year

    Contributed to operating leverage, largely driven by optimized marketing spend.

    Operating Expense Ratio Decrease
    0.3 percentage points
    Q2 FY26

    Reflects strategic focus on operational efficiency and bottom line quality.

    Cash and Investments Balance
    RMB 235 billion
    End of Q2 FY26

    Strong liquidity position.

    Share Repurchase
    USD 1 billion
    H1 FY26

    Part of the previously announced 3-year USD 5 billion share repurchase program.

    Remaining Share Repurchase Authorization
    around USD 1 billion
    as of Q2 FY26

    Under the previously announced 3-year share repurchase program.

    Total Shareholder Returns
    around USD 13 billion
    since 2023

    Demonstrates strong commitment to shareholder returns.

    Shares Repurchased Percentage of Outstanding
    around 17%
    since 2023

    Reflects consistent buyback activity.

    Marketplace and Marketing Revenues Growth
    8.3%
    year-on-year in Q2 FY26

    Consistently outpaced product sales, serving as an important driver for margin expansion.

    Logistics and Other Service Revenues Growth
    5.9%
    year-on-year in Q2 FY26

    Pace normalized as food delivery business lapped its initial launch.

    JD Retail R&D Expenses
    increased notably
    Q2 FY26

    Reflects increased investments in research and development capabilities.

    JD Retail 3P GMV Growth
    outpaced 1P
    past 3 consecutive quarters

    Indicates improving platform ecosystem and merchant onboarding.

    JD Retail 3P GMV Contribution
    expanding Q-on-Q
    Q2 FY26

    Indicates improving platform ecosystem and merchant onboarding.

    Group Gross Margin
    17.1%expanded meaningfully by 1.2 percentage points year-on-year
    Q2 FY26

    Reached a near all-time high, primarily driven by JD Retail's margin performance.

    Joybuy Loss Margin
    narrowed sequentially
    Q2 FY26

    Demonstrates disciplined approach to business expansion and continuous operational refinement, despite absolute operating loss expansion.

    Industry KPIs

    5
    MetricValueDetails
    Segment revenue mixRMB 295 billion (JD Retail); RMB 64.1 billion (JD Logistics); RMB 7.3 billion (New Businesses)RMB
    Regional market performancedoubled its revenues%
    Advertising revenue take rateshowing faster momentum
    Subscription membership programdouble-digit year-on-year growth%
    Operating income EBIT and adjusted EBITDARMB 8.9 billionRMB

    Product announcements

    4
    ProductTypeDetails
    Joy Insideupdate
    LangzuTech Goods-to-Person solutionexpansion
    Autonomous Delivery Routeslaunch
    Jingdong Logistics MetaBrain LLMlaunch

    Deals & partnerships

    1
    German retailerAcquisition of a German retailer to expand Joybuy's presence in Europe.

    Joybuy's growth is still pending the acquisition of this German retailer, which is expected to further differentiate its user and logistics experience in Europe.

    Risks & headwinds

    5
    High trade-in comparison baseQ2 FY26

    impacted electronics and home appliances revenue

    Mitigation: Base effect expected to normalize from Q3 FY26, leading to reacceleration.

    Upstream price pressure in consumer electronicsQ2 FY26

    moderated electronics and home appliances revenue

    Mitigation: Strengthening supply chain capabilities and proactive planning to cushion impact and maintain competitive prices.

    Evolving macro dynamicsQ2 FY26 and ongoing

    complex external environment

    Mitigation: Focus on high-quality development, supply chain capabilities, and operational efficiencies to drive sustained profit expansion.

    Ongoing rising consumer electronic priceH2 FY26

    may continue to weigh on consumer demand

    Mitigation: Leveraging strong supply chain strength to navigate price cycles more effectively and co-develop new products with brands.

    Near-term margin fluctuations in JD LogisticsQ2 FY26

    attributable to Deppon

    Mitigation: The rest of JD Logistics' business maintained a healthy profitability trajectory, implying isolated issue.

    What to watch in Q3 FY26

    5

    JD Retail Revenue Growth

    Q3 FY26
    Currentdown 4.7% YoY
    Targetpositive growth

    Why it matters

    Indicates a turning point for the core retail business and overall top-line recovery, crucial for the company's growth narrative.

    Heading into Q3, we expect JD Retail to hit a turning point, reaccelerating into positive top line expansion while sustaining healthy bottom line.

    Q&A highlights

    4

    Given Q2 headwinds for electronics/home appliances and general merchandise slowdown, what is the H2 growth outlook for these categories?

    Management expects electronics/home appliances growth to accelerate in H2 due to normalizing base effects, supply chain capabilities mitigating price pressures, and AI-driven product innovation. General merchandise growth moderated in Q2 but gained market share, with supermarket showing near double-digit growth. H2 general merchandise growth will be driven by category operational excellence, sustained user momentum, and an improving platform ecosystem.

    “Looking into the second half, while the ongoing rising consumer electronic price may continue to weigh on consumer demand, we remain confident that this category growth will improve meaningfully in the second half for three reasons...”

    asked by Kenneth Fong · answered by Xu Ran / Sean Shibiao Zhang

    2 min read6 chapters

    Detailed Narrative

    01

    Profitability Inflection Point

    Q2 FY26 marked a definitive turning point for JD.com's consolidated profitability, with non-GAAP net income attributable to ordinary shareholders surging by 20.8% year-on-year to RMB 8.9 billion. The net margin expanded by 0.5 percentage points to 2.6%. This robust performance was primarily driven by JD Retail achieving historic high gross and operating margins for a peak promotional season, alongside JD Food Delivery significantly narrowing its losses by over 50% year-on-year.

    02

    User Momentum and Engagement

    Despite streamlining group-level marketing expenses, JD.com maintained healthy user momentum, achieving double-digit year-on-year growth across key metrics including MAU, quarterly active customers, and Plus members. This expansion was primarily driven by deeper engagement among existing users, facilitated by diversified services such as healthcare, home services, and auto aftermarket. The strategic shift focuses on elevating user quality and lifetime value, successfully converting new users into loyal customers.

    03

    JD Retail Performance and Outlook

    JD Retail's revenues declined 4.7% year-on-year to RMB 295 billion in Q2, primarily due to a high comparison base and upstream price increases in electronics and home appliances. However, momentum picked up in June, and the company anticipates a pivot back to positive revenue growth for JD Retail in Q3. General merchandise, particularly the supermarket category, remained a resilient growth anchor with near double-digit revenue growth, while healthcare and industrial products also delivered solid double-digit growth.

    04

    New Businesses Loss Reduction and Strategic Focus

    New Businesses significantly improved profitability, with operating losses narrowing to RMB 9.9 billion, largely driven by JD Food Delivery's over 50% year-on-year loss reduction. This was achieved through optimized unit economics, streamlined operations, and revenue diversification. Joybuy, the international business, delivered encouraging sequential revenue growth in Europe, doubling revenues within two quarters by leveraging JD's supply chain capabilities and localized services like integrated delivery and installation for home appliances.

    05

    AI Integration and Automation

    JD.com is accelerating the integration of AI and physical automation across its core value chain, spanning demand forecasting, product sourcing, intelligent customer services, and full-stack logistics automation. AI is being used to upgrade search, recommendation, and ad targeting engines, driving tangible improvements in user engagement and conversion. Internally, generative AI is enhancing customer satisfaction and refining cost structures, while JD Logistics is expanding deployment of Goods-to-Person solutions and autonomous delivery routes, powered by the Jingdong Logistics MetaBrain LLM.

    06

    Shareholder Returns Commitment

    The company demonstrated a strong commitment to shareholder returns, repurchasing approximately 69.9 million Class A ordinary shares (equivalent to 34.9 million ADS) for a total of USD 1 billion in the first half of FY26. This represents around 2.5% of ordinary shares outstanding as of December 31, 2025. Since 2023, JD.com has returned approximately USD 13 billion to shareholders through dividends and share repurchases, including repurchasing about 17% of its outstanding shares.

    AI-generated summary of the company’s earnings call. Not investment advice.