Shares of Qifu Technology (NASDAQ: QFIN) plummeted 15.21% in early trading on Wednesday following the release of disappointing third-quarter 2025 financial results and a subsequent downgrade by JP Morgan. The AI-empowered Credit-Tech platform faced a severe market reaction as it grappled with challenges in China's consumer finance sector.

Qifu Technology reported adjusted earnings per ADS of $1.60 for Q3, falling short of analyst expectations of $1.68. Despite beating revenue projections with $731.2 million against estimates of $711.2 million, investors were rattled by the company's cautious outlook and signs of increasing risk in its loan portfolio. CEO Haisheng Wu acknowledged the difficulties, stating, "Later part of the third quarter was a rather challenging period of time as we continued to adjust our operations to cope with macro uncertainties and the latest regulatory changes."

Adding to the downward pressure, JP Morgan cut its rating on Qifu Technology to Neutral from Overweight and significantly reduced its target price to $21 from $45. The company's conservative guidance for Q4 2025, projecting a year-on-year decline in net income between 39% and 49%, further exacerbated investor concerns. As Qifu Technology navigates the turbulent waters of China's fintech sector, market participants will closely monitor its ability to maintain asset quality and adapt to evolving regulatory requirements.