JD.com NASDAQ: JD management said the company finished the fourth quarter of 2025 “in line with expectations,” citing resilience in the top line despite short-term pressure in electronics and home appliances and a high year-over-year comparison base. Executives emphasized that momentum in general merchandise and higher-margin marketplace and marketing services helped offset category weakness, while investments in price competitiveness, R&D, and new initiatives shaped profitability and cash flow.
Fourth-quarter and full-year performance
CFO Yan Shan said total net revenues rose 2% year-over-year in the fourth quarter to RMB 352 billion, while non-GAAP net profit was RMB 1.1 billion. For the full year, total net revenues increased 13% to RMB 1.3 trillion and non-GAAP net income attributable to ordinary shareholders was RMB 27 billion, implying a non-GAAP net margin of 2.1% for the year (0.3% in Q4).
By revenue type, product revenues declined 3% in Q4 but increased 10% for the full year. Service revenues grew 20% in Q4 and 24% for the full year, supported by marketplace and marketing revenues that rose 15% in Q4 and 19% for the year. Logistics and other service revenues increased 24% in Q4 and 27% for the full year, which management attributed mainly to incremental delivery-related revenues from the food delivery business.
Gross margin expanded as well. Management reported consolidated gross margin of 15.6% in Q4, up 32 basis points year-over-year, and 16% for the full year, up 18 basis points, driven primarily by margin gains in JD Retail.
Category trends: electronics headwinds, general merchandise strength
Management repeatedly pointed to softness in electronics and home appliances as the key near-term headwind. Yan said electronics and home appliances revenue fell 12% year-over-year in Q4, though it was up 7% for the full year. CEO Sandy Xu said the company invested part of its margin gains into price competitiveness in these categories during the quarter, which “slightly tempered” retail margin expansion in Q4.
In contrast, general merchandise remained a major growth driver. Xu said general merchandise revenue increased 12.1% year-over-year in Q4 and 15.3% for the full year, with continued double-digit growth in supermarket and strong performance in healthcare and fashion. In response to analyst questions, Xu added that general merchandise has posted double-digit growth for five consecutive quarters and said the company is “very confident” the healthy momentum will continue in 2026, citing market potential, ongoing user growth, supply chain capabilities, and improving internal synergies—particularly cross-selling with food delivery users.
Within fashion, management highlighted progress in merchant recruitment and platform capabilities such as search and recommendation. Xu also noted that in Q4 2025 the company recorded double-digit year-over-year growth in sports and outdoor apparel revenues.
JD Retail margin strategy and advertising momentum
JD Retail revenue declined 2% in Q4 but rose 11% for the full year. Yan said the quarterly decline was primarily due to the high base in electronics and home appliances, which was “largely mitigated” by growth in general merchandise and advertising revenue.
JD Retail’s gross margin increased by 1.1 percentage points year-over-year in both Q4 and the full year. However, non-GAAP operating income for JD Retail fell 2% in Q4, with operating margin steady at 3.2%. Yan described the “temporary pause” in margin expansion as a strategic decision tied to additional subsidies in electronics and home appliances to support price competitiveness, along with higher operating expenses from targeted investments in R&D and employee compensation. For the full year, JD Retail non-GAAP operating income grew 25% and operating margin improved 52 basis points to 4.6%.
Marketplace and marketing services—particularly advertising—were positioned as a key profit stream. Xu said advertising boosted marketplace and marketing revenues, helped by optimized traffic allocation, improved conversion, and AI-powered algorithms and agents for suppliers and merchants. She also said synergy with JD Food Delivery contributed an incremental 2% to 3% to ad revenue in Q4.
New businesses: food delivery efficiency focus and Europe launch
New business revenue rose 201% year-over-year in Q4 and 157% for the full year, driven by scaling in food delivery, Jingxi, and international business. The segment’s non-GAAP operating loss narrowed to RMB 14.8 billion in Q4, which management attributed mainly to a narrowing loss at JD Food Delivery; Yan said food delivery losses were reduced by about 20% versus the prior quarter.
Xu said JD Food Delivery reduced total investment scale by nearly 20% quarter-on-quarter in Q4 and has achieved sequential loss reduction each quarter since launch. She also highlighted increased merchant supply, saying total active merchants rose over 270%, partly due to onboarding higher-quality restaurants. Management said its strategy is to keep scaling while improving unit economics through diversified revenue streams, more efficient and targeted subsidies, and better delivery efficiency as the business gains scale.
In response to analyst questions on differentiation, management outlined several advantages for JD Food Delivery:
- A stated focus on “high-quality” food delivery
- Service quality supported by full-time riders
- Integration with JD’s broader ecosystem and supply chain capabilities
Xu also pointed to 7FRESH Kitchen as a differentiated model integrated with JD’s supply chain and on-demand retail, saying the footprint had expanded to more than 50 kitchen locations as of the end of February.
On international expansion, Xu said Joybuy, JD’s online retail business in Europe, would officially launch in March, aiming to provide same-day and next-day delivery. She said the company is building its own delivery network in Europe and that JoyExpress had launched to support same-day and next-day service in major cities across the U.K., Germany, France, and the Netherlands, including door-to-door delivery. Regarding the proposed Ceconomy transaction, management said it remained under regulatory review and that the company would provide updates “in due course.”
Capital returns, cash flow, and regulatory commentary
Management emphasized shareholder returns alongside investment. Yan said the board approved total annual cash dividends of approximately $1.4 billion for 2025, equal to $1 per ADS. He also said JD repurchased $3 billion of shares during 2025, representing about 6.3% of shares outstanding, and that the repurchased shares have been canceled.
Free cash flow for 2025 was RMB 6 billion versus RMB 44 billion the prior year, which Yan said primarily reflected cash outflows associated with the trade-in program and fluctuations in operating income. JD ended the year with cash and cash equivalents, restricted cash, and short-term investments totaling RMB 225 billion.
On regulation, management said it welcomes regulatory oversight that promotes “standardized” and healthy development of the platform economy. Executives argued that normalized regulation can create fairer opportunities for compliant companies and said JD’s focus on compliance—including in areas such as anti-monopoly measures and tax standardization—aligns with its long-standing operating philosophy.
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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