China’s e-commerce giant JD.com, Inc. (NASDAQ:JD) reported fiscal fourth-quarter 2025 results on Thursday.
The company reported quarterly revenue growth of 1.5% year over year (Y/Y) to $50.38 billion, beating the analyst consensus estimate of $50.22 billion.
JD posted an adjusted net income per ADS of 8 cents, beating the analyst consensus loss estimate of 3 cents.
The net product revenue decreased by 2.8% Y/Y at $39.04 billion. Net service revenues rose 20.1% Y/Y to $11.34 billion.
JD Retail revenue fell 1.7% Y/Y to $43.17 billion, Logistics revenue gained 21.9% Y/Y to $9.09 billion, and the New Business revenues grew 200.9% Y/Y to $2.01 billion.
Rising Costs and Margin Pressure
JD.com’s marketing expenses rose 50.6% to $3.6 billion in the quarter, accounting for 7.2% of revenues, up by 230 bps, primarily due to increased spending on promotional efforts for new business initiatives.
Fierce competition with Meituan (OTC:MPNGY) and Alibaba Group Holding Ltd. (NYSE:BABA) has pushed JD into an expensive price war, sending marketing costs sharply higher.
Operating margin was (1.7)% for the quarter, compared to 2.4% Y/Y.
Adjusted operating margin stood at (0.9)% compared to 3.0% Y/Y, primarily attributable to increased strategic investment in new business initiatives.
JD Retail’s operating margin fell 10 bps to 3.2%.
Profitability And Cash Flow
JD.com’s adjusted EBITDA loss for the quarter was $118 million, with a (0.2)% margin, compared to 3.6% Y/Y.
The company reported free cash flow of $2.48 billion for the quarter, driven by operating cash flow of $2.99 billion.
It held $32.2 billion in cash and equivalents as of December 31, 2025.
Dividend Payment
The board of directors approved an annual cash dividend of $1.0 per ADS to holders as of the close of business on April 9, 2026.
Share Repurchase Program
Pursuant to the company’s share repurchase program of up to $5.0 billion, adopted in August 2024 and effective through August 2027, it repurchased $3.0 billion in shares in 2025. The total number of shares repurchased by the company during the year ended December 31, 2025, amounted to approximately 6.3% of its ordinary shares outstanding as of December 31, 2024.
JD.com CEO Sandy Xu highlighted strong user growth and higher shopping frequency during the quarter and throughout the year.
Xu noted that the core JD Retail business remained resilient, posting double-digit growth in both revenue and operating profit for the full year despite intense industry competition.
She also said the company’s newer businesses progressed according to its strategy, with food delivery expanding steadily while reducing losses each quarter since launch, and Jingxi and international operations opening additional long-term growth opportunities.
Xu added that JD.com has integrated AI across its internal operations to improve user experiences and position the company for 2026 with stronger operational capabilities.
JD Price Action: JD.com shares were down 1.38% at $25.05 during premarket trading on Thursday. The stock is trading near its 52-week low of $25.01, according to Benzinga Pro data.
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