JD.com NASDAQ: JD reported a faster pace of revenue growth and higher profitability in the first quarter of 2026, as gains in general merchandise, marketplace services and logistics helped offset continued pressure in electronics and home appliances.
Chief Executive Officer Sandy Xu said total revenue rose 4.9% year over year in the quarter, while Chief Financial Officer Ian Su Shan said net revenues increased 5% to RMB 316 billion. Non-GAAP net profit attributable to ordinary shareholders was RMB 7.4 billion, representing a non-GAAP net margin of 2.3%.
Xu said the company “kicked off 2026 on firm ground,” citing a sequential rebound in electronics and home appliances, continued double-digit growth in general merchandise and marketplace-related revenue, and improved profitability across segments.
JD Retail Margins Near Historical Highs
JD Retail revenue rose 1.8% year over year, or 2% according to Su’s financial review, despite what management described as a high comparison base from last year’s trade-in program and price increases in electronics categories.
Revenue from electronics and home appliances fell 8.4% year over year, though Xu said the category improved sequentially. General merchandise revenue increased 14.9%, with management pointing to strength in supermarket, healthcare, home goods and apparel. Su said JD Supermarket maintained double-digit growth and further accelerated from the prior quarter.
JD Retail’s operating profit rose 16.5% year over year to RMB 15 billion, which Xu described as a quarterly record for the segment. Operating margin expanded 0.7 percentage point to 5.6%, while retail gross margin rose 1.8 percentage points to 18.6%.
Su attributed the margin improvement to stronger supply chain capabilities, gross margin gains across major categories, a favorable mix shift toward general merchandise and marketplace services, and improved marketing efficiency. He said JD Retail’s marketing expense ratio has declined year over year for three consecutive quarters.
During the question-and-answer session, Su said JD Retail remains committed to a long-term high-single-digit margin target, supported by 1P supply chain improvements, category mix optimization and growth in higher-margin advertising and commission revenue.
Electronics Face Near-Term Pressure, Second-Half Recovery Expected
Management said electronics and home appliances are likely to remain under pressure in the second quarter because of a higher trade-in comparison base and rising product prices. Xu said industrywide price hikes for smartphones and PCs began in March due to rising memory costs, which has dampened demand in the short term.
At the same time, Xu said consumer purchases are shifting toward mid- to high-end models and top-tier brands, areas where JD believes its supply chain and service advantages are more pronounced.
“Moving into the second half this year, we have stronger confidence in growth acceleration, especially for home appliance category as the comparison base returns to normal,” Xu said through a translator. She also cited the continued expansion of JD’s omni-channel sales network as a factor supporting home appliance sales.
Marketplace, Marketing and 3P Ecosystem Expand
Marketplace and marketing revenues grew 18.8% at the group level, with Su reporting 19% growth in the category. Advertising revenue posted its sixth consecutive quarter of double-digit growth.
Management said JD’s platform ecosystem continued to expand. Su said the active merchant base maintained triple-digit year-over-year growth in the first quarter, helped by new brands, industrial-belt merchants and restaurant merchants from JD Food Delivery.
Su said the number of users shopping third-party offerings grew faster than JD’s overall user base, while 3P order volume accounted for more than 50% of total orders in the quarter. He added that 3P gross merchandise volume grew faster than both 1P and total GMV.
JD’s user metrics also strengthened. Xu said quarterly active customers and annual active customers both grew by more than 20% year over year, with annual active customers reaching a new record. Quarterly customer shopping frequency rose 37%, and JD PLUS membership posted another quarter of double-digit growth.
Food Delivery Losses Narrow, Logistics Revenue Rises
JD’s new businesses segment posted revenue of RMB 6.3 billion. Non-GAAP operating loss narrowed sequentially to RMB 10.4 billion, led by JD Food Delivery. Xu said total investment in the new businesses segment narrowed by more than 30% sequentially.
Management said JD Food Delivery achieved its steepest sequential loss reduction to date while maintaining healthy order volumes. Su said commission and advertising revenue from food delivery nearly doubled quarter over quarter as JD improved operations and advertising systems.
Su said food delivery is not being managed as a standalone business, but as part of JD’s broader ecosystem. He said the service helped drive user growth, engagement and cross-category purchases, particularly in supermarket and on-demand retail offerings. Management said it expects the food delivery business to eventually achieve profitability, while continuing to take a long-term approach.
JD Logistics revenue grew 29% year over year, supported by incremental contribution from food delivery. Its non-GAAP operating income increased 600% year over year, which Su attributed to technological leverage from AI and robotics initiatives and broader operational optimization.
International, AI and Shareholder Returns
Xu said Joybuy, JD’s international retail initiative, officially launched on March 16 and is operating across Europe with same- and next-day delivery in more than 30 major European cities, reaching a population of more than 40 million by the end of the quarter. In response to an analyst question, she said Joybuy’s investment remained stable quarter over quarter and may increase gradually as the business grows, while remaining “highly manageable” and in line with initial expectations.
Management also highlighted AI and automation efforts. Xu said JD’s AI shopping agent Jingyan saw quarterly active users grow more than 200% year over year, while user engagement rose more than 300%. She said the JoyStreamer digital human livestreaming tool saw the number of merchants and livestreaming sessions using the technology increase tenfold year over year. JD Logistics also launched its next-generation Longzu Tech Packer robotic arm for package handling and automated cage loading.
JD ended the quarter with RMB 216 billion in cash and cash equivalents, restricted cash and short-term investments. Free cash flow for the last 12 months was RMB 22 billion, down from RMB 38 billion a year earlier, which Su said reflected cash outflows related to the trade-in program and operating income fluctuations.
The company repurchased approximately 44.5 million Class A ordinary shares, equivalent to 22.3 million American depositary shares, for $631 million during the quarter. Su said the remaining authorization under JD’s repurchase program is $1.4 billion, with an expiration date in August of next year. JD also completed an annual cash dividend payment of about $1.4 billion, or $1 per ADS, in April.
About JD.com NASDAQ: JD
JD.com is a major Chinese e-commerce company that operates a comprehensive online retail platform selling a wide range of consumer goods, including electronics, appliances, apparel, groceries and everyday household items. The company combines direct retailing—purchasing inventory and selling products itself—with a marketplace for third-party merchants, offering consumers both self-operated and third-party choices. In addition to its core retail business, JD.com has expanded into adjacent services such as digital marketplaces for cross-border commerce, online pharmacy and healthcare services, and enterprise-facing cloud and technology solutions.
A distinctive feature of JD.com's business model is its integrated logistics and fulfillment network.
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