Detailed narrative
User Growth and Engagement Momentum
JD.com achieved significant user expansion in Q4 FY25, with quarterly active customers growing 30% year-on-year and annual active customers surpassing 700 million. User shopping frequency surged over 40% for the full year across all user groups, including new users, existing users, and Plus members. The JD Food Delivery initiative played a crucial role in boosting user frequency and engagement across the platform.
Resilient General Merchandise Performance
The general merchandise category demonstrated robust performance, with revenue up 12.1% year-on-year in Q4 and 15.3% for the full year. This segment has maintained double-digit growth for five consecutive quarters, outperforming the industry. Subcategories like supermarket, fashion, and healthcare all contributed strong results, with supermarket showing significant untapped potential and fashion building on infrastructural improvements like merchant recruitment.
Strong Advertising Revenue Growth
Marketplace and marketing revenues grew 15% in Q4 and 18.9% for the full year, primarily driven by advertising revenue which saw double-digit growth every quarter of 2025. This growth was fueled by optimized traffic allocation, enhanced conversion efficiency, and the deployment of AI-powered algorithms.
Advertisers are increasingly reallocating budgets to JD due to its consistent sales platform, brand-building capabilities, and high return on investment throughout the product lifecycle, with JD Food Delivery contributing an incremental 2-3% to ad revenue in Q4.
New Business Efficiency and Strategic Synergies
New businesses, particularly JD Food Delivery, showed solid progress in Q4. The total investment scale for JD Food Delivery was reduced by nearly 20% quarter-on-quarter, continuing a trend of sequential loss reduction since its inception. The loss rate over GMV narrowed significantly while maintaining scale momentum.
Strategic synergies with core retail are deepening, evidenced by upward trends in cross-selling rates, shopping frequency, and a 270% increase in active merchants, including high-quality restaurants.
Extensive AI Integration Across Operations
JD.com is embedding AI across its entire value chain, from demand stimulation to autonomous logistics. Its proprietary large language model, JoyAI, supports over 1,000 real-world applications, with token invocations surging 100-fold in 2025. The AI agent Jingyan surpassed 150 million annual active customers in 2025, driving over 20% user penetration GMV.
Logistics automation includes over 20 flagship LangzuTech warehouses in China and a new facility in the U.K., while multimodal AI customer service handled over 4.2 billion inquiries during the 11.11 promotion.
Electronics and Home Appliances Headwinds and Outlook
The electronics and home appliance category faced a high comparison base, leading to a 12% revenue decline in Q4 and contributing to a 1.7% overall revenue dip for JD Retail. While the government's trade-in program is expected to benefit the industry, the first half of 2026 will still be impacted by a high base.
However, management anticipates sequential improvement in growth for this category, with a more robust recovery expected in the second half of 2026, supported by strengthening supply chain capabilities and emerging AI-related products.