JD.com's Q2 2025 Profit Declines Despite Strong Revenue Growth

JD.com (JD.US) reported Q2 2025 non-GAAP net income attributable to ordinary shareholders of RMB7.4 billion (US$1.0 billion), marking a 48.9% decrease from RMB14.5 billion in Q2 2024. Diluted non-GAAP net income per ADS was RMB4.97 (US$0.69), down from RMB9.36 in the prior year period. This figure fell short of the analyst EPS estimate of US$0.5, with the reported non-GAAP EPS equivalent to approximately US$0.69. Total net revenues increased by 22.4% year-over-year to RMB356.7 billion (US$49.8 billion), compared to RMB291.4 billion in Q2 2024. This also exceeded the analyst revenue estimate of US$46.74 billion, with reported revenue equivalent to approximately US$49.8 billion.

Retail Business Performance

JD Retail's net revenues reached RMB310.1 billion (US$43.3 billion) for Q2 2025, a 20.6% increase year-over-year. The operating margin for JD Retail improved to 4.5% from 3.9% in Q2 2024, representing a historic high across all promotion quarters. This strong performance was driven by robust user traffic, active customer growth, and increased shopping frequency, demonstrating the solid cornerstone of the core retail business.

Strategic Investments and New Businesses

The company made significant strategic investments in new business initiatives, particularly JD Food Delivery, leading to increased marketing expenses, which rose by 127.6% to RMB27.0 billion (US$3.8 billion) in Q2 2025. This surge in spending on promotional efforts for new ventures resulted in a decline in overall operating margin. Despite the increased investment, JD Food Delivery demonstrated healthy growth, with daily order volume exceeding 25 million during the JD 618 Grand Promotion.

Operational Efficiency and Supply Chain Strengths

JD Logistics continues to strengthen its global smart supply chain network, expanding overseas warehouses in multiple countries and launching its self-operated express delivery brand "JoyExpress" in Saudi Arabia. The implementation of the "Zhilang" intelligent warehousing system has significantly increased in-warehouse operational efficiency. These efforts underscore JD.com's commitment to delivering superior user experience and improving operational efficiency, reinforcing its supply chain strengths.

Commitment to Social Contribution

As of June 30, 2025, the total personnel under the JD Ecosystem reached approximately 900,000, including employees, part-time staff, and interns. The total expenditure for human resources amounted to RMB136.0 billion for the twelve months ended June 30, 2025. This highlights JD.com's dedication to job creation and social contributions.