TLDR
- JD.com Q2 revenue falls 2.9% while net income rises to RMB7.1 billion in 2026
- JD.com free cash flow climbs to RMB31.8 billion despite weaker quarterly revenue
- JD Retail margin improves to 4.6% as core operations remain profitable in Q2
- JD Logistics revenue jumps 24.3% while the company expands automation efforts
- JD.com repurchases $1 billion in shares as profits and cash generation strengthen
JD.com, Inc. (JD) stock fell 1.90% pre-market to $31.01 after the company released second-quarter 2026 results. Revenue declined from last year, while operating income, net income, and free cash flow improved. The shares had already closed 0.97% lower at $31.61 before Thursday’s pre-market decline.
JD.com Q2 Revenue Falls While Profitability Improves
JD.com reported second-quarter net revenue of RMB346.4 billion, representing a 2.9% decline from the previous year. The company attributed the decline mainly to a strong comparison period during the second quarter of 2025. However, service revenue increased 6.8%, helping offset weaker product sales during the quarter.
Net product revenue fell 5.4% year over year to RMB267.1 billion during the reported period. Electronics and home appliance revenue dropped 11.8%, while general merchandise revenue increased 5.6%. Meanwhile, marketplace and marketing revenue rose 8.3%, and logistics service revenue increased 5.9%.
JD.com generated operating income of RMB4.5 billion after reporting an RMB0.9 billion operating loss last year. Consequently, the operating margin improved to 1.3% from negative 0.2% during the comparable quarter. Non-GAAP operating income also increased sharply to RMB5.5 billion from RMB0.9 billion.
JD.com Net Income and Cash Flow Strengthen
Net income attributable to ordinary shareholders reached RMB7.1 billion, compared with RMB6.2 billion one year earlier. The corresponding net margin increased to 2.1% from 1.7% during the second quarter of 2025. Non-GAAP net income also increased to RMB8.9 billion from RMB7.4 billion.
Diluted earnings per ADS reached RMB5.01, compared with RMB4.15 during the same quarter last year. Non-GAAP diluted earnings per ADS increased to RMB6.29 from RMB4.97 during the comparable period. Therefore, earnings improved even as JD.com faced weaker consolidated revenue during the quarter.
JD.com also reported stronger cash generation during the second quarter despite higher capital spending. Free cash flow increased to RMB31.8 billion from RMB22.0 billion during the previous year’s quarter. Operating cash flow reached RMB37.7 billion, while capital expenditures totaled approximately RMB5.5 billion.
JD Retail Margins and Logistics Support Results
JD Retail generated RMB295.4 billion in quarterly revenue, marking a 4.7% decline from last year’s period. However, the segment produced RMB13.5 billion in operating income and maintained strong profitability. Its operating margin increased slightly to 4.6% from 4.5% despite lower revenue.
JD Logistics delivered stronger growth and generated RMB64.1 billion in second-quarter revenue. That figure represented a 24.3% increase compared with the second quarter of 2025. The logistics segment also recorded operating income of RMB2.3 billion during the quarter.
JD.com continued expanding logistics automation, artificial intelligence services, healthcare operations, and overseas retail initiatives. The company also strengthened partnerships with brands including Chanel and Costco during 2026. These projects provide additional growth channels as JD.com manages slower revenue across its core retail operations.
JD.com Continues Share Repurchases and Technology Spending
JD.com repurchased approximately 69.9 million Class A ordinary shares during the first six months of 2026. Those purchases represented about 2.5% of ordinary shares outstanding at the end of 2025. The company spent approximately $1.0 billion under its existing $5.0 billion share repurchase program.
Research and development expenses increased 37.7% year over year to RMB7.3 billion. JD.com continued investing in artificial intelligence, automated logistics, healthcare technology, and industrial procurement tools. Marketing expenses declined 24.8% to RMB20.3 billion as the company reduced promotional spending.
JD.com ended June with RMB235.1 billion in cash, restricted cash, and short-term investments. The balance increased from RMB225.4 billion recorded at the end of December 2025. Stronger profits and cash flow contrasted with softer revenue growth and the latest weakness in JD stock.
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