JD.com Inc Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
JD.com's Q3 2025 earnings call highlighted strong user growth and engagement, solid core retail performance driven by general merchandise and marketplace revenues, and progress in new businesses like food delivery and international expansion. The company is focused on leveraging AI to enhance its ecosystem and drive long-term sustainable growth.
Key Financial Results
Total revenues increased by 15% year-on-year to RMB 299 billion in Q3.
Non-GAAP net profit came in at RMB 5.8 billion in the quarter.
Product revenues were up 10% year-on-year.
Service revenues increased 31% year-on-year.
Marketplace and marketing revenues grew 24% year-on-year.
Logistics and other service revenues grew 35% year-on-year.
JD Retail's gross margin increased by 1.3 percentage points to 19.3%.
JD Retail's non-GAAP operating income was up 28% year-on-year to RMB 14.8 billion.
Consolidated non-GAAP net income attributable to ordinary shareholders was RMB 5.8 billion.
Business Segment Results
JD Retail revenues were up 11% year-on-year in Q3.
JD Logistics revenues were up 24% year-on-year in Q3.
JD Logistics non-GAAP operating income was compressed 39% year-on-year to RMB 1.3 billion.
New Businesses generated RMB 15.6 billion in revenues.
Non-GAAP operating loss of New Businesses slightly widened sequentially to RMB 15.7 billion.
Food Delivery GMV achieved double-digit quarter-on-quarter growth.
Capital Allocation
The company will prioritize investment efficiency and make dynamic adjustments to adhere to healthy and sustainable growth.
The scale of investment in the international business will not be substantial, and the company will carefully manage the investment pace and scale.
Industry Trends and Dynamics
The electronics and home appliances category faced a high base effect, weighing on growth momentum.
The trade-in program stimulated consumer demand and contributed to sales of home appliances and PCs.
The trade-in program is driving industry upgrades and promoting innovative, intelligent, and green products.
The international market is very big, and Europe is the second-largest consumer electronics market in the world.
Competitive Landscape
JD.com is working closely with brands and manufacturers to navigate the challenges in the electronics and home appliances category.
The company is leveraging its market and user insights to support brands in developing new and customized product models.
JD.com is focused on providing a better user experience amid evolving user demand.
The company aims to steadily advance its international expansion strategy while maintaining financial discipline.
Macroeconomic Environment
The company is operating in synergy, bolstering conviction in the path ahead.
The company sees great opportunities to further unlock the collaborative value of its business ecosystem and position itself well for sustainable, high-quality growth.
Growth Opportunities and Strategies
JD.com is focused on further growing the Food Delivery business scale, UE optimization, and unlocking stronger synergies with retail logistics and other businesses.
Jingxi is further penetrating into the lower-tier markets and growing its merchant and user base.
The international retail business is gradually establishing capabilities in the UK, France, Germany, and Benelux regions, paving the way for global expansion.
The company unveiled its AI roadmap during the 2025 JD Discovery conference.
JD.com launched new AI products, including TaTaTa and Joy Inside, and introduced industry-specific AI applications across retail, healthcare, logistics, and industrial sectors.
The company is upgrading its retail technology infrastructure, such as JD Streamer, and providing 24/7 non-stop AI customer service.
JD.com aims to establish a highly efficient global retail network to deliver a premium shopping experience to consumers worldwide.
The company aims to seize the opportunity of the Chinese supply chain going global, leveraging its supply chain advantage to better support Chinese brands in their international expansion.
Financial Guidance and Outlook
The company expects marketplace and marketing revenues to continue healthy growth in Q4.
JD Retail has built multiple growth drivers, and the company believes growth of the general merchandise category and value-added services will be important pillars in retail's long-term growth.
The company is committed to improving UE performance and aims to drive healthy and sustainable bottom-line growth in the long run.
The company is confident in building on its strengths to unlock new growth potential in the electronics and home appliances market.
The company expects the strong tailwind in the general merchandise category to sustain into Q4.
The company expects marketplace and marketing revenues to continue solid growth in Q4, contributing to both top-line growth and margin performance.
The company's high-single-digit margin target for the long term remains unchanged.
