JD.com's second-quarter revenue remained in an adjustment phase, but profit performance noticeably improved, with both the core retail business and improved losses from its food delivery operations driving profitability higher.

On August 13, during the second-quarter 2026 earnings call, JD.com management characterized the current earnings trend as a "clear turning point." In the second quarter, the company's non-GAAP net profit attributable to ordinary shareholders increased by 21% year-on-year to 8.9 billion RMB. The gross margin and operating profit margin of JD Retail both reached historical highs for the promotional season. Meanwhile, losses from its urban food delivery business narrowed by more than 50% year-on-year, becoming a significant source of profit improvement.

In contrast, the revenue side continued to be impacted by a high base figure and pressure on the electronics and home appliances category. Second-quarter total revenue for JD.com fell 2.9% year-on-year to 346.4 billion RMB, while JD Retail revenue declined 4.7% year-on-year to 295 billion RMB. However, CEO JD.com (Sandra Xu) stated on the call that business momentum had stabilized and recovered since June, and the company expects retail business revenue to return to positive growth in the third quarter while maintaining a healthy net profit level.

Management pointed out that the high base pressure from the electronics and home appliances category will gradually ease from the third quarter, while general merchandise categories like supermarkets, healthcare, and industrial products remain resilient. As platform traffic expands, advertising revenue is also expected to accelerate growth. Concurrently, JD.com completed approximately $1 billion in share buybacks in the first half of the year, bringing cumulative returns to shareholders to about $13 billion since 2023.

Regarding overseas expansion, the European business brand Joybuy has achieved revenue doubling for two consecutive quarters. However, management emphasized that the pace of related investments will remain "disciplined and controllable," and the business's loss rate has also improved quarter-over-quarter.

Takeaway losses narrow, inflection point emerges

The significant narrowing of losses in the food delivery business by more than 50% year-on-year was a major highlight of this quarter's profit improvement.

In her opening remarks on the call, Xu cited the marked reduction in food delivery losses as key evidence of a "clear turning point" in the company's earnings trajectory. This indicates that, after an initial period of heavy investment, the food delivery business is entering a phase of gradually narrowing losses.

At the same time, JD.com continues to advance new ventures, including overseas and lower-tier markets.

The overseas business, Joybuy, strengthened its European localization services this quarter, including integrated delivery and installation services for home appliances, and achieved revenue doubling in two quarters. The lower-tier market became a strong growth engine, with quarterly active customers growing over 40% year-on-year, contributing 40% of new active customers in the second quarter. Xu stated that strategic investments in these two businesses increased quarter-over-quarter but remained within the company's expected range, with overall execution continuing to adhere to ROI discipline.

AI deepens empowerment of core business, strategic focus shifts to user quality and lifetime value

Beyond profit improvement, JD.com is also further embedding AI and automation technologies into its core business processes.

On the call, Xu mentioned that the company is upgrading its search recommendation and targeted advertising engines, and advancing its proprietary AI shopping assistant. On the logistics side, JD Logistics' large language model is used in automated operations systems, providing real-time intelligent decision support for demand forecasting, procurement, customer service, and logistics.

Management also emphasized that the company's current strategic focus has shifted from rapid user acquisition to improving user quality and lifetime value, converting new users into high-engagement customers through more refined lifecycle management.

Additionally, revenue from home services grew rapidly in the second quarter; by the end of the second quarter, JD.com's automotive service offline stores had covered over 1,000 districts and counties nationwide.

Retail business expected to return to positive growth in Q3

Looking ahead to the second half of the year, JD.com expects the growth rate of its electronics and home appliances business to improve compared to the first half. On one hand, the high base pressure from the same period last year is gradually fading; on the other hand, the company aims to leverage its supply chain capabilities to better cope with pressure from the consumer electronics price cycle.

Xu stated on the call that JD.com has seen business momentum stabilize since June and expects the retail business to achieve positive revenue growth again in the third quarter.

Based on current operating performance, JD.com's core task for the second half of the year has shifted from simply pursuing revenue growth to balancing revenue recovery with profit improvement. This involves driving the retail business back to a growth trajectory while continuing to reduce investment intensity in new ventures like food delivery, simultaneously improving profit margins through supply chain efficiency and AI capabilities.

Management reiterated that the core retail business will continue to drive efficiency improvements across the entire supply chain, while new businesses will unlock strategic value under strict financial discipline. With food delivery losses continuing to narrow, retail profit margins improving, and AI gradually entering the core business, JD.com is attempting to transform the second quarter's profit improvement into a more sustainable operational turning point.