JD's Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

JD.com JD reported non-GAAP earnings of 8 cents per ADS in the fourth quarter of 2025, which beat the Zacks Consensus Estimate by 14.29%. In domestic currency, the company reported earnings of RMB0.57, reflecting a 92.3% year-over-year decrease. 

It posted fourth-quarter revenues of $50.4 billion. The top line missed the Zacks Consensus Estimate by 0.56%. In domestic currency, revenues of RMB352.3 billion increased 1.5% year over year.

JD.com, Inc. Price, Consensus and EPS Surprise

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

Revenues by Segments

JD Retail generated net revenues of RMB 301.9 billion ($43.2 billion), down 1.7% year over year. The segment faced headwinds primarily from the electronics and home appliances category, while demonstrating resilience in general merchandise and service revenues. 

Net product revenues decreased 2.8% year over year to RMB273.0 billion ($39.0 billion) in the fourth quarter of 2025. 

Electronics and home appliances revenues declined 12% year over year to RMB153.3 billion ($21.9 billion), primarily due to a high base effect created by government trade-in subsidies implemented in 2024.

General merchandise revenues grew 12.1% to RMB119.7 billion ($17.1 billion). Within general merchandise, supermarket, fashion and health categories maintained double-digit year-over-year growth during the quarter.

Net service revenues increased 20.1% year over year to RMB79.3 billion ($11.3 billion) in the fourth quarter of 2025.

Marketplace and marketing revenues increased 15.0% year over year. This momentum was driven by accelerated advertising revenues generated by the core retail business, improved ecosystem dynamics and enhanced AI-powered advertising tools.

Logistics and other service revenues grew 23.6% year over year, primarily driven by incremental delivery revenues from the food delivery business. 

JD Logistics reported net revenues of RMB63.5 billion ($9.1 billion) in the fourth quarter, representing growth of 21.9% compared with the fourth quarter of 2024. Both internal and external revenues grew at steady paces, with additional contributions from incremental delivery service revenues generated by the food delivery business. 

The New Businesses segment generated revenues of RMB14.1 billion ($2.0 billion) in the fourth quarter of 2025, representing a substantial increase of 200.9% from the prior-year period. This significant growth was driven by the continued expansion of JD Food Delivery, Jingxi and international businesses.

JD Food Delivery continued to demonstrate healthy development with steady momentum in order volume and a healthier mix between meal and beverage orders. Total investment in JD Food Delivery narrowed sequentially in the quarter, driven by a focus on user experience, operational efficiency optimization and rational response to industry competition.

Operating Details

Non-GAAP EBITDA was negative RMB 0.8 billion ($0.1 billion) for the fourth quarter of 2025 compared with RMB12.5 billion in the prior-year period. Non-GAAP EBITDA margin compressed to negative 0.2% from positive 3.6% year over year. 

Non-GAAP loss from operations was RMB 3.1 billion ($0.4 billion) for the fourth quarter of 2025 compared with non-GAAP income from operations of RMB10.5 billion in the previous year’s quarter. Non-GAAP operating margin was negative 0.9% against positive 3% in the prior-year period, primarily attributable to increased strategic investment in new business initiatives.

Marketing expenses increased 50.6% year over year to RMB25.3 billion ($3.6 billion). As a percentage of net revenues, marketing expenses rose to 7.2% from 4.9%, primarily due to increased spending in promotional efforts for new business initiatives.

Research and development expenses increased 52.0% year over year to RMB6.7 billion ($1 billion). As a percentage of net revenues, research and development expenses increased to 1.9% from 1.3%. General and administrative expenses rose 34.8% year over year to RMB3.3 billion ($0.5 billion). As a percentage of net revenues, general and administrative expenses increased to 0.9% from 0.7%.

User Metrics and Engagement

Quarterly active customers grew 30% year over year in the fourth quarter of 2025, capping a year in which the company exceeded 700 million annual active customers. This growth was powered by organic user growth at JD Retail and further accelerated by new strategic initiatives, including JD Food Delivery and Jingxi. User shopping frequency surged more than 40% year over year for the full year, with broad-based gains across all user groups, including new and existing users as well as Plus members.

Balance Sheet & Cash Flow

As of Dec. 31, 2025, cash, cash equivalents and restricted cash totaled RMB149.6 billion ($21.4 billion), up from RMB125.3 billion as of Sept. 30, 2025. Combined liquid assets (cash, restricted cash and short-term investments) totaled RMB225.4 billion ($32.2 billion) compared to RMB210.5 billion at the end of the third quarter of 2025. 

Short-term debts decreased to RMB 8 billion ($1.1 billion) from RMB17.1 billion as of Sept. 30, 2025. Long-term borrowings were pinned at RMB41.7 billion ($6 billion), up from RMB 39 billion in the previous quarter.

Net cash provided by operating activities was RMB 20.9 billion ($3 billion) in the fourth quarter of 2025 compared with RMB 24.9 billion in the fourth quarter of 2024. 

Free cash flow generated for the fourth quarter of 2025 was RMB 17.3 billion ($2.5 billion) compared with free cash flow used of RMB 11.2 billion in the third quarter of 2025.

Zacks Rank & Stocks to Consider

JD.com currently carries a Zacks Rank #3 (Hold).

Etsy ETSY, FIGS FIGS and Five Below FIVE are some better-ranked stocks that investors can consider in the broader Zacks Retail-Wholesale sector. 

Etsy, FIGS and Five Below sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Etsy shares have declined 2.7% in the past six-months. The Zacks Consensus Estimate for Etsy’s 2026 earnings is pegged at $3.51 per share, up by 37.1% over the past 30 days.

FIGS shares have surged 148.5% in the past six-months. The Zacks Consensus Estimate for FIGS’ 2026 earnings is pegged at 19 cents per share, up by 9 cents over the past 30 days.

Five Below shares have surged 46.5% in the past six-months. The Zacks Consensus Estimate for Five Below’s fiscal 2026 earnings is pegged at $ 6.30 per share, up by 2 cents over the past 30 days.

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

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