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Can JD.com's Global Supply Chain Expansion Drive Long-Term Growth?

By Zacks Equity Research | October 21, 2025, 11:50 AM

JD.com JD is deepening its global supply chain footprint, signalling a deliberate shift from a domestic e-commerce leader to a globally integrated logistics and retail ecosystem. The company is extending its end-to-end fulfilment model beyond China, scaling infrastructure in both the Middle East and Europe to strengthen its ability to serve brands, merchants and consumers worldwide.

In Europe, JD has been building warehouse and retail infrastructure over the past few years and plans to launch new localised e-commerce formats supported by its logistics and property arms. In the Middle East, it is developing large-scale logistics and parts hubs designed to handle storage, customs and last-mile delivery for enterprise clients. Together, these initiatives reflect JD’s long-term vision of building a global supply chain network capable of supporting cross-border commerce efficiently and competitively.

By leveraging automation, real-time data analytics and advanced inventory management, JD aims to shorten delivery cycles, reduce logistics costs and create new revenue streams through warehousing and fulfilment services. The Zacks Consensus Estimate for JD’s third-quarter 2025 total revenue is pegged at $41.33 billion, implying an 11.40% year-over-year increase. The consensus mark for EPS is pegged at 46 cents per share, up 2 cents in the past 30 days but 62.9% lower year over year. While these figures reflect the near-term impact of heavy investment in global capacity, they also signal an underlying trajectory of expanding scale and market reach. As JD builds out its international logistics network, short-term margin strain appears to be a trade-off for long-term strength, anchoring the company’s evolution into a globally competitive, supply chain-driven growth engine.

JD Faces Stiff Competition

JD.com faces intensifying competition from Alibaba BABA and PDD Holdings PDD as both accelerate their international expansion. Alibaba’s Cainiao network is rapidly building cross-border warehouses and logistics hubs, strengthening Alibaba’s position in Asia and Europe through faster, data-driven fulfilment. PDD Holdings, through its fast-growing platform, Temu, is extending its global reach across Europe and North America, while leveraging cost advantages in sourcing and distribution. As Alibaba and PDD Holdings push deeper into logistics and cross-border retail, JD’s ability to sustain efficiency and margin discipline will be central to defending its competitive edge.

JD.com's Price Performance, Valuation & Estimates

Shares of JD.com have declined 2.7% year to date, underperforming the Zacks Internet-Commerce industry and Zacks Retail-Wholesale sector’s return of 4.7% and 5.1%, respectively.

JD’s YTD Price Performance

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From a valuation standpoint, JD.com is trading at a forward 12-month price-to-earnings ratio of 9.74X, lower than the industry’s 23.71X. JD carries a Value Score of A.

JD’s Valuation

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for JD’s 2025 earnings is pegged at $2.80 per share, up by 8 cents over the past 30 days. The earnings figure suggests a 34.27% decline year over year.

JD.com, Inc. Price and Consensus

JD.com, Inc. Price and Consensus

JD.com, Inc. price-consensus-chart | JD.com, Inc. Quote

JD.com currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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