JD.com beats Q2 EPS estimates as operating profit swings to $670M

JD.com reported Q2 revenue of $51.1 billion, down 2.9 percent but beating consensus by $310 million, as operating profit swung to $670 million from a year-earlier loss.

"Our second quarter results reflect our resilient and high-quality operations," Sandy Xu, Chief Executive Officer of JD.com, said. "Despite near-term revenue headwinds, we achieved strong bottom-line growth, marking a clear inflection in our profit trajectory."

Non-GAAP diluted EPS came in at $0.93 per ADS, beating the $0.83 consensus by $0.10. JD Retail operating margin reached 4.6 percent, a record for peak promotional seasons, while JD Logistics revenue rose 24.3 percent to $9.4 billion. New Businesses, including JD Food Delivery, narrowed operating losses to RMB9.85 billion from RMB14.8 billion a year earlier.

The results extend JD's streak of beating analyst expectations to six consecutive quarters. Shares traded at $31.61 on Aug. 12, down 0.97 percent, with the stock broadly flat over the past year despite improving profitability. The company repurchased approximately 2.5 percent of outstanding shares in the first half, with $1.0 billion remaining under its buyback program through August 2027.

Metric	Actual	Consensus	Beat/Miss
Revenue	$51.05B	$50.74B	+$310M
Non-GAAP EPS	$0.93	$0.83	+$0.10
JD Retail Op Margin	4.6%	—	Record high

Revenue declined 2.9 percent to RMB346.4 billion as electronics and home appliance sales fell 11.8 percent on a high base from the prior-year period. General merchandise revenue rose 5.6 percent, while service revenue grew 6.8 percent, with marketplace and marketing revenue up 8.3 percent. Net product revenue fell 5.4 percent, while net service revenue rose 6.8 percent.

Marketing expenses dropped 24.8 percent to RMB20.3 billion as the company optimized promotional spending on new business initiatives. Research and development spending rose 37.7 percent to RMB7.3 billion, with investments in the JoyAI large language model and JD Industrial's JoyIndustrial platform. Fulfillment expenses increased 10.4 percent to RMB24.5 billion, reflecting continued investment in delivery infrastructure.

JD Logistics revenue rose 24.3 percent to RMB64.1 billion with operating margin of 3.5 percent. The logistics unit shifted its on-demand delivery services to directly serve third-party merchants starting in January 2026, reclassifying internal revenues as external.

Net income attributable to shareholders rose to RMB7.1 billion from RMB6.2 billion a year earlier. Non-GAAP net income reached RMB8.9 billion, up from RMB7.4 billion. Free cash flow for the quarter totaled RMB31.8 billion, up from RMB22.0 billion.

CFO Ian Su Shan said the company's business ecosystem would continue to support sustained resilience and a healthy financial trajectory, backed by solid financial performance and the repurchase of approximately 2.5 percent of ordinary shares outstanding in the first half. The company also disclosed a RMB635 million fine imposed by China's State Administration for Market Regulation related to compliance deficiencies among third-party shops selling decorated cakes.

The profit inflection comes as JD faces a challenging domestic consumer environment in China, with Citi maintaining a Buy rating in late July and raising its Q2 estimates on stronger retail sales. Michael Burry disclosed adding to his position, pointing to Hong Kong stocks as relatively cheap as capital flows toward AI-related markets.

Management will hold a conference call at 8:00 a.m. ET on Aug. 13 to discuss results. Investors will watch for guidance on second-half revenue trends and whether JD Food Delivery can sustain its loss-reduction trajectory.

This article is for informational purposes only and does not constitute investment advice.