JD-SW (JD.com, Inc.) reported a 2.90% year-on-year decline in second-quarter 2026 revenue to RMB 346.40 billion, reflecting a high base in the prior period. Nonetheless, stronger margins in the core retail arm and narrowing losses in new initiatives pushed operating profit and net income sharply higher.

Operating performance • Income from operations swung to a profit of RMB 4.50 billion from a RMB 0.90 billion loss a year earlier, lifting the operating margin to 1.30% from –0.20%. • On a non-GAAP basis, operating income reached RMB 5.50 billion, up more than six-fold, with margin expanding to 1.60% (Q2 2025: 0.30%). • Net income attributable to ordinary shareholders rose 14.96% to RMB 7.10 billion, lifting net margin to 2.10% (Q2 2025: 1.70%). Non-GAAP net income improved 20.27% to RMB 8.90 billion, giving a 2.60% non-GAAP net margin. • Diluted earnings per ADS increased to RMB 5.01 from RMB 4.15; non-GAAP diluted EPS climbed to RMB 6.29.

Segment trends • JD Retail generated RMB 295.38 billion revenue (–4.70% YoY) and RMB 13.50 billion operating profit, pushing segment margin to a record 4.60%. • JD Logistics revenue advanced 24.30% to RMB 64.10 billion, with a 3.50% operating margin. • New Businesses revenue contracted 47.60% to RMB 7.26 billion, yet segment losses narrowed to RMB 9.85 billion from RMB 14.78 billion.

Revenue mix shift Product sales fell 5.40% to RMB 267.12 billion, while service revenue grew 6.80% to RMB 79.29 billion, aided by higher marketplace, marketing and logistics services.

Cost dynamics Cost of revenues eased 4.30% to RMB 287.09 billion. Marketing spend dropped 24.80% to RMB 20.30 billion, trimming its share of revenue to 5.90% (Q2 2025: 7.60%). Fulfilment costs rose 10.40% to RMB 24.45 billion as JD.com continued to enhance logistics capacity, pushing fulfilment expense ratio to 7.10%. R&D investment jumped 37.70% to RMB 7.30 billion, or 2.10% of sales.

Cash flow & balance sheet Quarterly free cash flow surged 44.56% to RMB 31.84 billion. Cash, restricted cash and short-term investments totalled RMB 235.10 billion at 30 June 2026, up from RMB 225.40 billion six months earlier.

Capital return Under its US$5.00 billion buy-back authorisation (Aug 2024–Aug 2027), JD.com repurchased 69.90 million Class A shares (34.90 million ADS), spending US$1.00 billion and retiring about 2.50% of outstanding shares; US$1.00 billion remains available.

Operational highlights • JD MALL expanded to 30 stores with new openings in Shanghai and Hong Kong. • High-profile brand partnerships included a flagship launch with CHANEL Beauty and an exclusive China e-commerce deal with Costco. • Proprietary JoyAI and JoyInside technologies now power nearly 200 brand collaborations. • JD Logistics deployed thousands of autonomous delivery vehicles across 20 provinces and opened 24-hour routes in Shenzhen. • JD Health introduced an integrated healthcare center in Beijing and upgraded its “Dr. Da Wei” AI health agent, quadrupling user engagement during the 618 promotion. • JD Industrials rolled out over 70 AI agents across the industrial value chain, and JD Food Delivery continued to narrow losses via improved efficiency and revenue diversification.

Outlook commentary Management highlighted a “clear inflection” in profitability, citing robust retail margins and disciplined spending. Continued focus on operational efficiency and expanding high-margin service lines underpin expectations for sustained earnings momentum in the second half of 2026.