Key Takeaways
- Fourth-quarter revenue at JD.com increased 1.5% from the prior year to RMB352.28 billion, falling short of the RMB352.89 billion analyst forecast.
- Earnings per share registered at RMB0.57, disappointing compared to the RMB0.67 consensus estimate.
- The company’s adjusted EBITDA turned negative at RMB0.8 billion, a dramatic decline from the positive RMB12.5 billion recorded in the year-ago period.
- JD.com recorded a quarterly net loss of RMB2.7 billion, contrasting sharply with the RMB9.9 billion profit generated in Q4 2024.
- The board greenlit a $1.0 per ADS cash dividend for the year 2025, representing approximately $1.4 billion in total shareholder returns.
The Chinese e-commerce powerhouse delivered underwhelming fourth-quarter results, with key financial metrics trailing Wall Street expectations.
Revenue for the quarter reached RMB352.28 billion (roughly $51.12 billion), representing a modest 1.5% increase compared to the previous year. However, this figure came in below the analyst consensus of RMB352.89 billion. While the shortfall appears minimal, it nonetheless represents a disappointment.
The earnings picture proved equally challenging, with the company reporting earnings per share of RMB0.57, meaningfully below the expected RMB0.67.
Perhaps most concerning was the profitability reversal. The e-commerce platform recorded a net loss attributable to ordinary shareholders of RMB2.7 billion, marking a dramatic shift from the RMB9.9 billion profit achieved in the comparable quarter last year.
The adjusted EBITDA metric painted an equally troubling picture — swinging to negative RMB0.8 billion in the fourth quarter of 2025 from positive RMB12.5 billion during the same period in 2024. The company’s non-GAAP EBITDA margin deteriorated to negative 0.2%, a significant decline from the 3.6% margin previously recorded.
CEO Sandy Xu attempted to frame the results constructively, stating: “We were pleased to close out 2025 with fourth quarter results in line with expectations, capping another solid full-year performance.”
Core Retail Operations Show Marginal Decline
The JD Retail division, which represents the company’s primary revenue engine, generated operating income of RMB9.8 billion during the quarter, edging down from RMB10.0 billion in the prior-year period. The segment’s operating margin contracted to 3.2% from 3.3% in Q4 2024 — a modest but notable deterioration.
Despite quarterly challenges, the full-year picture appeared more encouraging. Xu highlighted that the retail segment delivered double-digit expansion in both top-line revenues and operating profit throughout 2025.
JD.com has strategically emphasized business diversification to counterbalance headwinds facing its traditional e-commerce operations. The company is particularly focused on expanding its advertising platform and instant retail offerings as higher-margin revenue sources.
CFO Ian Su Shan elaborated on this strategic evolution: “Our revenue mix has become increasingly diversified, and as profitability strengthens… and higher-margin businesses such as advertising contribute a larger share, we are confident that our profit streams will become more diversified as well.”
Intensifying Market Competition and Fading Subsidies
The Chinese e-commerce landscape continues to intensify, with fierce competition defining market dynamics. Both Alibaba and PDD Holdings have aggressively expanded promotional activities and discount offerings across their platforms, creating sustained margin pressure throughout the industry.
Government stimulus programs, which previously boosted JD’s performance — especially in categories like home appliances — are now creating difficult year-over-year comparisons as their impact diminishes.
Broader macroeconomic challenges continue affecting Chinese consumer behavior, with ongoing real estate sector weakness and employment uncertainties dampening discretionary spending appetite.
Shares of JD.com traded slightly lower in pre-market activity following the earnings announcement.
Regarding capital allocation, the company announced board approval for an annual cash dividend of $1.0 per American Depositary Share for 2025. The dividend will have a record date of April 9, 2026, with aggregate payments expected to total approximately $1.4 billion.
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