Aug 13, 2026 earnings call — Q2 profitability turning point and retail margin expansion
Non-GAAP net income rose 20.8% year-on-year to RMB 8.9 billion.
Revenue $51.0B (est $50.4B) · EPS $0.93 (est $0.86)
Key quotes
"Q2 marks a definitive turning point for our consolidated profitability, and we are confident in sustaining this expanding profit trajectory as we move forward."
"Gross margin expanded by 1.3 percentage points year-on-year to 18.5%."
"This was primarily driven by a more than 50% loss reduction in JD Food Delivery, highlighting our strong execution in optimizing its unit economics through streamlined operations, revenue diversification and strict ROI discipline as market competition normalized."
Analyst Q&A 4
electronics and general merchandise growth
Q (Kenneth Fong · UBS): They asked the outlook for electronics and home appliances growth in the second half. They also asked why general merchandise slowed in Q2 and what its trend will be next quarter.
A: Management said electronics faced short-term pressure from last year's high base and higher prices, but market share grew and offline sales accelerated. They expect electronics to improve in H2 because the Q3 base eases, supply chain actions cushion price impact, and product innovation (Joy Inside partnered with nearly 200 brands) helps. For general merchandise, they said the slowdown was partly from a high base; supermarket, health care and industrial products still grew well and they expect healthy growth driven by 1P supply chain, user growth, and a stronger platform ecosystem.
"So over the long term, we remain highly confident in our leadership in the electronics and home appliance category, while sales may fluctuate in the short term, JD's unique value to brands become even clearer in uncertain times." — Sean Shibiao Zhang
share buybacks and Joybuy in Europe
Q (Ronald Keung · Goldman Sachs): First, will management set a fixed percentage of annual profits for shareholder returns given stronger free cash flow? Second, how will Joybuy differentiate price, user and logistics experience in Europe and what is the investment plan?
A: They said they repurchased 69.9 million ordinary shares for USD 1 billion in H1 and are executing the previously announced 3-year USD 5 billion buyback, with about USD 1 billion remaining. They said Joybuy uses JD's supply chain localized in Europe to offer same-day and next-day delivery to over 40 million customers, improving retention and doubling revenue in two quarters, and that investment will increase as scale and unit economics improve but remain disciplined.
"Under the previously announced 3-year USD 5 billion share repurchase program, the remaining amount is around USD 1 billion." — Unknown Executive
food delivery and advertising growth
Q (Alicis a Yap · Citi): What is the plan for JD Food Delivery's market share, user growth and cross-sell synergies? Also, how will marketplace and marketing/advertising revenues sustain faster growth into the second half?
A: They said JD Food Delivery made solid progress in Q2: order volume kept healthy growth and total loss narrowed by over 50% year-on-year, with lower subsidy per order and higher delivery efficiency. They said food delivery creates clear cross-sell and location-based merchant synergies, and that marketplace and advertising revenues outpaced total revenue in Q2; advertising should accelerate in H2 as sales recover, helped by AI-driven ad efficiency, category mix shifts, and traffic from new businesses like food delivery.
"JD Food Delivery has made solid progress in the second quarter, order volume maintained healthy growth while narrowing total loss by over 50% year-on-year." — Sean Shibiao Zhang
margin outlook and new business investment
Q (Thomas Chong · Jefferies): What is the JD Retail margin outlook for the second half? How much will the group invest in new businesses and how should we think about group profitability and net margin?
A: They said JD Retail's operating margin improved in Q2 from higher gross margin and better marketing expense ratios, though R&D (especially for AI) rose. They expect supply chain efficiency to keep lifting gross margin in H2 while R&D investment stays elevated near term; over the long term they remain confident in achieving a high single-digit margin target. On new businesses, they said investments are long-term but disciplined, unit economics are improving (JD Food Delivery narrowed losses 50% YoY) and group profitability should accelerate with continued discipline and ecosystem synergies.
"Over the long term, we remain confident in achieving our high single-digit margin target." — Unknown Executive