Breaking News | JD.com Posts First Quarterly Revenue Decline in a Decade Despite Earnings Beat

JD.com reported net income of 7.13 billion yuan ($1.06 billion) for Q2, up 15% year-over-year and beating the consensus estimate of 6.71 billion yuan. Adjusted net profit rose 21% to 8.93 billion yuan. However, revenue fell 2.9% to 346.4 billion yuan - the company's first quarterly revenue decline in more than a decade - though it still exceeded the 344.6 billion yuan estimate.

The earnings beat was driven by improved profitability in JD Retail and continued narrowing of losses at JD Food Delivery, where the company has been locked in a costly subsidy war with Alibaba and Meituan since late 2024. That battle pushed JD.com to its first quarterly loss in nearly four years during Q4 2025. Chinese regulators have since launched investigations against aggressive food delivery competition, which helped cool promotional spending.

Revenue outperformance came partly from extending the 618 shopping festival sales period this year, pulling forward consumer spending through extended discounts. Gross merchandise volumes across major platforms grew at a slower pace during the event, according to Syntun, reflecting persistent weakness in domestic consumption. China recorded its first monthly retail sales drop since the pandemic in May 2026.

• Year-end food delivery market share: JD.com pledged to reach 30% of total market share by December 2026, doubling from early-year levels - execution will determine whether profitability gains are sustainable or require renewed subsidy spending.

• European expansion progress: The company faces an in-depth subsidy probe from the European Commission related to its acquisition attempt of Germany's Ceconomy AG, while rolling out Joybuy and JoyExpress across Europe.

• Q3 consumer demand signals: Next quarter will show whether revenue stabilizes or if the 2.9% decline marks the start of a structural slowdown in China's e-commerce sector.