JD.com swings back to profit as sales dip
JD.com returns to profit in Q2 2026 despite a 2.9% sales dip, driven by stronger retail margins and cost controls.
JD.com returned to operating profit in the second quarter of 2026, reporting 4.54 billion yuan ($673.2 million) in income despite a 2.9% decline in net revenues to 346.40 billion yuan.
The Chinese e-commerce company’s turnaround followed a loss of 859 million yuan in the same period last year. CEO Sandy Xu attributed the improvement to stronger profitability in its core JD Retail business and narrower losses at JD Food Delivery.
JD Retail margins edge up
JD Retail, the company’s largest segment, posted operating income of 13.47 billion yuan, down slightly from 13.93 billion yuan a year earlier. Revenue in the segment fell to 295.38 billion yuan from 310.07 billion yuan, but its operating margin ticked up to 4.6% from 4.5%.
The company has been expanding its retail partnerships. In May, it launched an official Chanel flagship store on its platform. In July, Costco appointed JD.com as its sole official e-commerce partner in China under a new partnership agreement.
Logistics growth offsets losses in new ventures
JD Logistics reported a 24.3% increase in revenue to 64.10 billion yuan, with operating income rising to 2.26 billion yuan from 1.95 billion yuan a year earlier. The segment has expanded its use of unmanned vehicles to more than 20 provinces and introduced night-time autonomous delivery routes in Shenzhen.
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Meanwhile, JD.com’s New Businesses division—including areas like cloud computing and overseas operations—narrowed its operating loss to 9.85 billion yuan from 14.77 billion yuan, though revenue fell 47.6% year-on-year to 7.26 billion yuan.
Net income for the quarter reached 8.68 billion yuan, up from 6.70 billion yuan in the second quarter of 2025.
Regulatory pressure remains a challenge. In April, the company disclosed administrative penalties totaling 635 million yuan from China’s market regulator over compliance issues with third-party cake sellers and order-transfer services. Separately, the European Commission issued a formal statement of concerns as part of its investigation into potential foreign subsidies linked to JD.com’s proposed takeover of Ceconomy.
Xu acknowledged the revenue headwinds but emphasized the company’s focus on strong bottom-line growth, marking a clear inflection in its profit trajectory.
