JD.com (JD) Q1 2026 earnings summary

Executive summary

• Net revenues grew 4.9% year-on-year in Q1 2026 to RMB 315.7 billion, driven by strong service and general merchandise growth, while electronics and home appliances declined.

• JD Retail achieved record profitability with operating margin at 5.6%, while new businesses, including Food Delivery and Jingxi, showed significant sequential loss reduction and improved efficiency.

• User base and engagement surged, with both quarterly and annual active customers up over 20% year-on-year, and shopping frequency rising 37%.

• Share repurchases totaled $631 million (1.6% of shares outstanding), with $1.4 billion remaining under the program, and an annual cash dividend of $1.4 billion was paid in April.

• Net income attributable to ordinary shareholders was RMB 5.1 billion, down from RMB 10.9 billion year-over-year; non-GAAP net income was RMB 7.4 billion, with a non-GAAP net margin of 2.3%.

Financial highlights

• Net service revenues surged 20.6% year-on-year, while net product revenues increased 1.0%.

• General merchandise revenues rose 14.9% year-on-year, offsetting an 8.4% decline in electronics and home appliances.

• Marketplace and marketing revenues increased 18.8% year-on-year; logistics and other service revenues grew 21.7%.

• Group gross margin expanded by 90 basis points year-on-year to 16.8%.

• Free cash flow for the last 12 months was RMB 22 billion, with cash and equivalents at RMB 216 billion.

Outlook and guidance

• Electronics and home appliances expected to face temporary pressure in Q2 due to high base and price hikes, but stronger growth anticipated in the second half of 2026.

• General merchandise, advertising, and commission revenues expected to sustain robust growth throughout the year.

• Margin expansion remains a long-term target, with high single-digit margins as a goal.

• Management highlights continued investment in new businesses, including food delivery and overseas expansion, as key growth drivers.

• Profitability expected to be impacted by ongoing investments and efforts to secure product supplies amid robust consumer demand.