JD.com produced a significant profitability turnaround during the second quarter of 2026 despite reporting lower overall revenue, as operating income swung to RMB4.5 billion from a RMB0.9 billion loss a year earlier.
Q2 net revenue declined 2.9% year-over-year to RMB346.4 billion, or approximately $51.1 billion. JD attributed the decline primarily to a difficult comparison with the prior-year period.
Operating margin improved to 1.3% from negative 0.2%. On a non-GAAP basis, operating income increased to RMB5.5 billion from RMB0.9 billion, while non-GAAP operating margin expanded to 1.6% from 0.3%.
The profitability improvement reflects an important change beneath the headline revenue decline. Net product revenue decreased 5.4%, while higher-margin net service revenue increased 6.8%.
Within that mix, electronics and home appliances revenue declined 11.8% to RMB157.9 billion. General merchandise revenue increased 5.6% to RMB109.2 billion, marketplace and marketing revenue grew 8.3% to RMB30.9 billion, and logistics and other service revenue increased 5.9% to RMB48.4 billion.
JD Retail remained the company’s primary earnings engine. The segment generated RMB13.5 billion of operating income, compared with RMB13.9 billion a year earlier, while operating margin improved to 4.6% from 4.5%. Management said JD Retail achieved a record operating margin for peak promotional seasons.
The broader improvement was also supported by JD Food Delivery. JD said losses in New Businesses narrowed significantly year-over-year, driven primarily by continued reduction of losses at Food Delivery, while investment in Joybuy and Jingxi continued.
Net income attributable to ordinary shareholders increased to RMB7.1 billion from RMB6.2 billion, while net margin improved to 2.1% from 1.7%. Non-GAAP net income increased to RMB8.9 billion from RMB7.4 billion, with non-GAAP net margin reaching 2.6%.
Diluted net income per ADS increased to RMB5.01 from RMB4.15, while non-GAAP diluted net income per ADS increased to RMB6.29 from RMB4.97.
JD continues to invest in technology despite the increased focus on profitability. JD Industrials deployed more than 70 AI agents across workflows ranging from procurement through fulfillment during the first half. Its JoyIndustrial large language model was also upgraded from an AI tool toward what JD describes as an AI expert.
JD Logistics has meanwhile deployed thousands of unmanned delivery vehicles across more than 20 provinces and launched nighttime autonomous delivery routes in Shenzhen, enabling continuous 24-hour operation.
The stronger earnings also supported substantial capital returns. JD repurchased approximately $1 billion of stock during the first half, representing about 2.5% of ordinary shares outstanding at the end of 2025. Approximately $1 billion remained available under the existing repurchase authorization as of June 30.
KEY QUOTES:
“Despite near-term revenue headwinds, we achieved strong bottom-line growth, marking a clear inflection in our profit trajectory. This improvement was primarily driven by solid profitability in our core JD Retail business and continued narrowing of loss at JD Food Delivery.”
Sandy Xu, Chief Executive Officer of JD.com
“JD Retail’s operating margin hit a record high for peak promotional seasons. This performance was driven by margin improvement in certain key categories, as well as a favorable revenue mix as high-margin marketplace and marketing revenues continued to outperform.”
Ian Su Shan, Chief Financial Officer of JD.com
