With healthy free cash flow, will management set a more official percentage for shareholder returns? How does Joybuy differentiate itself, and what is its investment budget for H2/next year?

Management reiterated commitment to shareholder returns through healthy business development, dividends, and buybacks, having returned $13 billion since 2023. Joybuy differentiates through localized supply chain, efficient 1P retail, and integrated delivery/installation services in Europe, doubling revenue in two quarters. Investment will be disciplined and measured, with unit economics expected to improve as scale expands. “Under the previously announced 3-year USD 5 billion share repurchase program, the remaining amount is around USD 1 billion. We are executing on the program as planned.”

What are JD Food Delivery's plans for market share, user growth, and cross-sell synergy? How can JD sustain faster growth in marketplace/marketing revenues amid competition and slower consumption?

JD Food Delivery maintained healthy order volume and narrowed losses by over 50% YoY, demonstrating clear synergies with core retail for user acquisition and cross-sell. The long-term goal is healthy scale growth, operating efficiency, and deeper integration. Marketplace/marketing revenues outpaced total revenues, with advertising accelerating due to AI-driven efficiency, category mix optimization (general merchandise), and traffic pool expansion from new businesses. “JD Food Delivery has made solid progress in the second quarter, order volume maintained healthy growth while narrowing total loss by over 50% year-on-year.”

What is the H2 margin outlook for JD Retail? How should the company's investment in new businesses be viewed in relation to group-level profitability and net margin?

JD Retail's margin improved due to gross margin expansion and marketing efficiency, with R&D investments in AI increasing. H2 expects continued gross margin improvement, with R&D growing. The long-term target for JD Retail is a high single-digit margin. New businesses are long-term initiatives with strict financial discipline. JD Food Delivery losses will narrow substantially in H2, and Joybuy investment will be measured. Group profitability inflected in Q2 and expects accelerated profit growth in H2. “Over the long term, we remain confident in achieving our high single-digit margin target [for JD Retail].”

JD.com (JD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 13, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
JD Retail Revenue Growth	reaccelerating into positive top line expansion high materiality	Q3 · FY26	High
Electronics and Home Appliances Top Line Growth	accelerate from the first half medium materiality	H2 FY26	High
JD Retail Overall Growth	accelerate quarter-by-quarter high materiality	H2 FY26	High
JD Retail Operating Margin	high single-digit margin high materiality	Long term	High
JD Food Delivery Loss Reduction	further efficiency gains and a substantial narrowing of year-on-year losses medium materiality	H2 FY26	High
Joybuy Investment	invest at a measured pace and keep total investment for the business steady and within our control low materiality	Going forward	High
Group-level Profit Growth	accelerated profit growth high materiality	H2 FY26	High
Group-level Profit Expansion	steady long-term profit expansion high materiality	Long term	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 billion	down 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 billion	24.3%	—	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 billion	decline 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

Product announcements

Product	Type	Timeline
Joy Inside	update	—
LangzuTech Goods-to-Person solution	expansion	—
Autonomous Delivery Routes	launch	—
Jingdong Logistics MetaBrain LLM	launch	—

Deals & partnerships

German retailer Acquisition 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

High trade-in comparison base Q2 FY26

impacted electronics and home appliances revenue

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

Upstream price pressure in consumer electronics Q2 FY26

moderated electronics and home appliances revenue

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

Evolving macro dynamics Q2 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 price H2 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 Logistics Q2 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

JD Retail Revenue Growth

Q3 FY26

Current down 4.7% YoY

Target positive 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.

Find out whether JD delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.