JD.com (NASDAQ:JD) shares fell around 2% in U.S. premarket trading on Thursday despite the Chinese e-commerce group reporting second-quarter earnings and revenue above analyst expectations. Results were supported by an extended sales period for the annual 618 shopping festival, while improving profitability across the company’s core retail and food delivery operations helped strengthen the bottom line.
JD.com beats earnings and revenue forecasts
JD.com reported second-quarter earnings of RMB6.29 per share, exceeding the analyst consensus of RMB5.63 by RMB0.66.
Revenue reached RMB346.4 billion, also coming in ahead of Wall Street expectations of RMB342.7 billion.
However, sales declined 2.9% compared with the second quarter of 2025. JD.com attributed the year-over-year contraction primarily to a challenging comparison with the strong revenue base established during the prior-year period.
The company’s quarterly performance also benefited from a longer promotional window surrounding the 618 shopping festival, one of China’s largest annual online retail events.
Profit growth strengthens despite revenue headwinds
While revenue declined from a year earlier, JD.com’s profitability showed considerable improvement.
“Our second quarter results reflect our resilient and high-quality operations,” said Sandy Xu, CEO of JD.com. “Despite near-term revenue headwinds, we achieved strong bottom-line growth, marking a clear inflection in our profit trajectory. This improvement was primarily driven by solid profitability in our core JD Retail business and continued narrowing of loss at JD Food Delivery.”
The results indicate that the company is making progress on improving the economics of its operations even as the broader revenue environment remains challenging.
JD Retail continued to provide a solid earnings foundation, while reduced losses at JD Food Delivery helped strengthen overall profitability.
Operating margin expands sharply
JD.com’s non-GAAP operating margin increased to 1.6% during the second quarter, compared with just 0.3% in the same period last year.
The improvement suggests that cost controls and stronger operating efficiency are allowing a greater proportion of revenue to translate into operating profit.
Non-GAAP EBITDA also recorded substantial growth, more than doubling to RMB7.9 billion from RMB3.0 billion a year earlier.
The corresponding non-GAAP EBITDA margin expanded to 2.3% from 0.8%, providing further evidence of improving profitability despite the decline in year-over-year revenue.
Shares fall despite stronger-than-expected results
The roughly 2% premarket decline suggests investors remained cautious despite JD.com’s earnings and revenue beat.
The year-over-year sales contraction may have tempered enthusiasm surrounding the substantial improvement in margins and EBITDA, with investors continuing to assess the strength of consumer demand in China’s competitive e-commerce market.
Nevertheless, JD.com’s second-quarter figures showed a notable shift in its earnings profile. With profitability strengthening at JD Retail and losses narrowing at JD Food Delivery, attention is likely to remain focused on whether the company can maintain its margin improvements while returning its top line to sustained growth.
JD.com stock price
