Key Takeaways
- Fourth-quarter revenue at JD.com climbed 1.5% year-over-year to RMB352.28 billion, falling short of the RMB352.89 billion analyst forecast.
- Earnings per share landed at RMB0.57, trailing the RMB0.67 consensus projection.
- Adjusted EBITDA turned negative at RMB0.8 billion, a dramatic decline from the RMB12.5 billion positive figure recorded one year prior.
- A net loss of RMB2.7 billion was recorded for the period, contrasting sharply with the RMB9.9 billion profit achieved in Q4 2024.
- The board greenlit an annual cash dividend of $1.0 per ADS for 2025, totaling approximately $1.4 billion in shareholder distributions.
JD.com delivered fourth-quarter financial results that underwhelmed Wall Street, with both top and bottom-line figures trailing analyst projections.
Revenue for the quarter reached RMB352.28 billion (roughly $51.12 billion), representing a modest 1.5% increase from the prior-year period. This figure came in below the Street’s RMB352.89 billion expectation. While the shortfall wasn’t massive, it still marked a disappointment.
Profitability metrics presented a more concerning picture. The company reported earnings per share of RMB0.57, significantly below the RMB0.67 consensus forecast.
The bottom-line deterioration proved particularly striking. JD.com recorded a net loss attributable to ordinary shareholders of RMB2.7 billion, marking a dramatic swing from the RMB9.9 billion profit generated during the comparable quarter last year.
Adjusted EBITDA reflected similar weakness — turning negative to the tune of RMB0.8 billion in Q4 2025 versus a positive RMB12.5 billion in the year-ago period. The non-GAAP EBITDA margin contracted to negative 0.2% from 3.6%.
CEO Sandy Xu attempted to frame the results optimistically, noting: “We were pleased to close out 2025 with fourth quarter results in line with expectations, capping another solid full-year performance.”
Core Retail Business Shows Margin Pressure
The JD Retail division, which represents the company’s primary business engine, generated operating income of RMB9.8 billion during the quarter, edging down from RMB10.0 billion in the prior year. Operating margin compressed to 3.2% from 3.3% in Q4 2024 — a modest but meaningful decline.
Full-year retail results painted a brighter picture. Xu highlighted that the segment delivered double-digit expansion in both revenues and operating profit throughout 2025.
JD.com has increasingly emphasized business diversification to counterbalance challenges facing its traditional operations. The company is actively developing its advertising platform and instant retail capabilities as potential sources of higher-margin growth.
CFO Ian Su Shan emphasized 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.”
Fierce Rivalry and Subsidy Challenges Weigh on Performance
The Chinese e-commerce landscape remains brutally competitive. Alibaba and PDD Holdings have both intensified promotional activities and discount offerings across their platforms, creating industrywide pressure on pricing power and profitability.
Government subsidy programs, which had previously provided a tailwind for JD — especially within home appliance categories — are becoming less impactful as year-over-year comparisons become more challenging.
Chinese consumer sentiment has remained subdued, with the ongoing real estate sector downturn and labor market uncertainties dampening appetite for discretionary spending.
Shares of JD.com traded slightly lower in premarket activity following the earnings announcement.
Regarding capital allocation, the board authorized an annual cash dividend of $1.0 per ADS for 2025. The record date is set for April 9, 2026, with aggregate payments expected to reach approximately $1.4 billion.
