We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JD.com reports double-digit year-over-year growth in Q3 earnings and revenues.
JD.com saw strong gains in retail, logistics and new businesses, led by food delivery expansion.
JD.com's user base and shopping frequency surged over 40%, driving continued platform momentum.
JD.com (JD - Free Report) reported non-GAAP earnings of 44 cents per ADS in the third quarter of 2025, which beat the Zacks Consensus Estimate by 29.41%. In domestic currency, the company reported earnings of RMB 3.73, indicating a 62.7% year-over-year decrease.
It posted third-quarter revenues of $42 billion. The top line beat the Zacks Consensus Estimate by 1.7%. In domestic currency, revenues of RMB 299.1 billion increased 14.9% year over year. Excluding disposed businesses of Sun Art and Intime, revenues increased 10% on a like-for-like basis.
JD’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.89%.
JD Retail generated net revenues of RMB250.6 billion ($35.2 billion), representing an increase of 11.4% year over year. The segment demonstrated solid momentum across multiple categories despite facing headwinds in certain product lines.
Net product revenues increased 10.5% year over year to RMB226.1 billion ($31.8 billion) in the third quarter of 2025.
Electronics and home appliances revenues grew 4.9% year over year to RMB128.6 billion ($18.1 billion), decelerating from previous quarters due to a high base effect created by government trade-in subsidies implemented in 2024.
General merchandise revenues recorded robust growth of 18.8%, reaching RMB97.5 billion ($13.7 billion). Within general merchandise, supermarket, fashion and health categories maintained double-digit year-over-year growth during the quarter.
Net service revenues increased 30.8% year over year to RMB73 billion ($10.3 billion) in the third quarter of 2025.
Marketplace and marketing revenues increased 23.7% year over year. This strong momentum stems from accelerated advertising revenues generated by the core retail business, improved ecosystem dynamics and enhanced AI-powered advertising tools. Advertising revenues saw more than 20% year-over-year growth in the third quarter.
Logistics and other service revenues grew 35% year over year, primarily driven by incremental delivery revenues from the food delivery business.
JD Logistics reported net revenues of RMB55.1 billion ($7.7 billion) in the third quarter, representing growth of 24.1% compared with the third quarter of 2024. Both internal and external revenues grew at steady paces, with additional contributions from incremental delivery service revenues generated by the food delivery business.
The New Businesses segment generated revenues of RMB15.6 billion ($2.2 billion) in the third quarter of 2025, representing a substantial increase of 213.7% from the prior year period. This significant growth was driven by the continued expansion of JD Food Delivery, Jingxi and international businesses.
JD Food Delivery maintained healthy growth with gross merchandise value achieving double-digit quarter-on-quarter growth, driven by both order volume expansion and a healthier order mix. High-value orders contributed most of the total orders. Average order value increased quarter on quarter compared with the second quarter of 2025.
Operating Details
Non-GAAP EBITDA totaled RMB2.5 billion ($346 million) for the third quarter of 2025, compared with RMB15.1 billion in the prior year period. Non-GAAP EBITDA margin compressed to 0.8% from 5.8% year over year.
Consolidated gross margin decreased 40 basis points to 17% from 17.4% in the prior year period, primarily due to margin dilution from the food delivery business and JD Logistics, which offset JD Retail's solid gross margin expansion during the quarter.
Marketing expenses increased 110.5% year over year to RMB21.1 billion ($3 billion). As a percentage of net revenues, marketing expenses increased to 7% from 3.8%, primarily due to increased spending in promotional efforts for new business initiatives.
Research and development expenses increased 28.4% year over year to RMB5.6 billion ($793 million). As a percentage of net revenues, research and development expenses increased to 1.9% from 1.7%. General and administrative expenses increased 28.6% year over year to RMB3 billion ($420 million). As a percentage of net revenues, general and administrative expenses increased to 1% from 0.9%.
User Metrics and Engagement
Quarterly active customer numbers increased more than 40% year over year in the third quarter of 2025, sustaining the momentum built in previous quarters. Annual active customers surpassed the milestone of 700 million in October 2025, reflecting consistent user expansion driven by organic growth at JD Retail and contributions from new businesses, including JD Food Delivery and Jingxi. User shopping frequency on the platform increased more than 40% year over year in the third quarter, a pace sustained for two consecutive quarters. During the 11.11 Grand Promotion period, the number of shopping customers increased 40% year over year, demonstrating continued strong momentum heading into the fourth quarter.
Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash, cash equivalents and restricted cash totaled RMB125.3 billion ($17.6 billion), down 3.1% from RMB129.4 billion as of June 30, 2025. Combined liquid assets (cash, restricted cash and short-term investments) totaled RMB210.5 billion ($29.6 billion), down 13% from RMB243.0 billion at the end of the second quarter of 2025.
Short-term debts increased to RMB17.1 billion ($2.4 billion) from RMB13.3 billion as of June 30, 2025. Long-term borrowings stood at RMB 39 billion ($5.5 billion), up from RMB 37.4 billion in the previous quarter.
Net cash used in operating activities was RMB8 billion ($1.1 billion) in the third quarter of 2025, compared with net cash provided of RMB6.2 billion in the second quarter of 2025. The negative operating cash flow primarily reflects seasonal working capital requirements, cash outflows associated with the trade-in program and lower profitability.
Free cash flow used for the third quarter of 2025 was RMB11.2 billion ($1.6 billion), compared with a free cash flow generated of RMB0.5 billion in the second quarter of 2025.
American Eagle Outfitters shares have appreciated 5.2% year to date. The Zacks Consensus Estimate for AEO’s fiscal 2026 earnings is pegged at $1.12 per share, up by a penny over the past 30 days, implying a decline of 35.63% from the year-ago reported figure.
Amazon shares have appreciated 8.3% year to date. The Zacks Consensus Estimate for AMZN’s 2025 earnings is pegged at $7.15 per share, up 4.5% over the past 30 days, implying an increase of 29.29% from the year-ago reported figure.
Boot Barn shares have appreciated 18.2% year to date. The Zacks Consensus Estimate for BOOT’s fiscal 2026 earnings is pegged at $7.01 per share, up by 6.9% over the past 30 days, implying growth of 20.45% from the year-ago reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
JD's Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
JD.com (JD - Free Report) reported non-GAAP earnings of 44 cents per ADS in the third quarter of 2025, which beat the Zacks Consensus Estimate by 29.41%. In domestic currency, the company reported earnings of RMB 3.73, indicating a 62.7% year-over-year decrease.
It posted third-quarter revenues of $42 billion. The top line beat the Zacks Consensus Estimate by 1.7%. In domestic currency, revenues of RMB 299.1 billion increased 14.9% year over year. Excluding disposed businesses of Sun Art and Intime, revenues increased 10% on a like-for-like basis.
JD’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.89%.
JD.com, Inc. Price and Consensus
JD.com, Inc. price-consensus-chart | JD.com, Inc. Quote
Revenues by Segments
JD Retail generated net revenues of RMB250.6 billion ($35.2 billion), representing an increase of 11.4% year over year. The segment demonstrated solid momentum across multiple categories despite facing headwinds in certain product lines.
Net product revenues increased 10.5% year over year to RMB226.1 billion ($31.8 billion) in the third quarter of 2025.
Electronics and home appliances revenues grew 4.9% year over year to RMB128.6 billion ($18.1 billion), decelerating from previous quarters due to a high base effect created by government trade-in subsidies implemented in 2024.
General merchandise revenues recorded robust growth of 18.8%, reaching RMB97.5 billion ($13.7 billion). Within general merchandise, supermarket, fashion and health categories maintained double-digit year-over-year growth during the quarter.
Net service revenues increased 30.8% year over year to RMB73 billion ($10.3 billion) in the third quarter of 2025.
Marketplace and marketing revenues increased 23.7% year over year. This strong momentum stems from accelerated advertising revenues generated by the core retail business, improved ecosystem dynamics and enhanced AI-powered advertising tools. Advertising revenues saw more than 20% year-over-year growth in the third quarter.
Logistics and other service revenues grew 35% year over year, primarily driven by incremental delivery revenues from the food delivery business.
JD Logistics reported net revenues of RMB55.1 billion ($7.7 billion) in the third quarter, representing growth of 24.1% compared with the third quarter of 2024. Both internal and external revenues grew at steady paces, with additional contributions from incremental delivery service revenues generated by the food delivery business.
The New Businesses segment generated revenues of RMB15.6 billion ($2.2 billion) in the third quarter of 2025, representing a substantial increase of 213.7% from the prior year period. This significant growth was driven by the continued expansion of JD Food Delivery, Jingxi and international businesses.
JD Food Delivery maintained healthy growth with gross merchandise value achieving double-digit quarter-on-quarter growth, driven by both order volume expansion and a healthier order mix. High-value orders contributed most of the total orders. Average order value increased quarter on quarter compared with the second quarter of 2025.
Operating Details
Non-GAAP EBITDA totaled RMB2.5 billion ($346 million) for the third quarter of 2025, compared with RMB15.1 billion in the prior year period. Non-GAAP EBITDA margin compressed to 0.8% from 5.8% year over year.
Consolidated gross margin decreased 40 basis points to 17% from 17.4% in the prior year period, primarily due to margin dilution from the food delivery business and JD Logistics, which offset JD Retail's solid gross margin expansion during the quarter.
Marketing expenses increased 110.5% year over year to RMB21.1 billion ($3 billion). As a percentage of net revenues, marketing expenses increased to 7% from 3.8%, primarily due to increased spending in promotional efforts for new business initiatives.
Research and development expenses increased 28.4% year over year to RMB5.6 billion ($793 million). As a percentage of net revenues, research and development expenses increased to 1.9% from 1.7%. General and administrative expenses increased 28.6% year over year to RMB3 billion ($420 million). As a percentage of net revenues, general and administrative expenses increased to 1% from 0.9%.
User Metrics and Engagement
Quarterly active customer numbers increased more than 40% year over year in the third quarter of 2025, sustaining the momentum built in previous quarters. Annual active customers surpassed the milestone of 700 million in October 2025, reflecting consistent user expansion driven by organic growth at JD Retail and contributions from new businesses, including JD Food Delivery and Jingxi. User shopping frequency on the platform increased more than 40% year over year in the third quarter, a pace sustained for two consecutive quarters. During the 11.11 Grand Promotion period, the number of shopping customers increased 40% year over year, demonstrating continued strong momentum heading into the fourth quarter.
Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash, cash equivalents and restricted cash totaled RMB125.3 billion ($17.6 billion), down 3.1% from RMB129.4 billion as of June 30, 2025. Combined liquid assets (cash, restricted cash and short-term investments) totaled RMB210.5 billion ($29.6 billion), down 13% from RMB243.0 billion at the end of the second quarter of 2025.
Short-term debts increased to RMB17.1 billion ($2.4 billion) from RMB13.3 billion as of June 30, 2025. Long-term borrowings stood at RMB 39 billion ($5.5 billion), up from RMB 37.4 billion in the previous quarter.
Net cash used in operating activities was RMB8 billion ($1.1 billion) in the third quarter of 2025, compared with net cash provided of RMB6.2 billion in the second quarter of 2025. The negative operating cash flow primarily reflects seasonal working capital requirements, cash outflows associated with the trade-in program and lower profitability.
Free cash flow used for the third quarter of 2025 was RMB11.2 billion ($1.6 billion), compared with a free cash flow generated of RMB0.5 billion in the second quarter of 2025.
Zacks Rank & Stocks to Consider
JD.com currently carries a Zacks Rank #3 (Hold).
American Eagle Outfitters (AEO - Free Report) , Amazon (AMZN - Free Report) and Boot Barn (BOOT - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Retail-Wholesale sector.
While American Eagle Outfitters and Amazon carry a Zacks Rank #2 (Buy) each, Boot Barn sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters shares have appreciated 5.2% year to date. The Zacks Consensus Estimate for AEO’s fiscal 2026 earnings is pegged at $1.12 per share, up by a penny over the past 30 days, implying a decline of 35.63% from the year-ago reported figure.
Amazon shares have appreciated 8.3% year to date. The Zacks Consensus Estimate for AMZN’s 2025 earnings is pegged at $7.15 per share, up 4.5% over the past 30 days, implying an increase of 29.29% from the year-ago reported figure.
Boot Barn shares have appreciated 18.2% year to date. The Zacks Consensus Estimate for BOOT’s fiscal 2026 earnings is pegged at $7.01 per share, up by 6.9% over the past 30 days, implying growth of 20.45% from the year-ago reported figure.