JD.com (JD) Stock Plunges Into Loss Territory Despite Revenue Growth in Q4

Key Takeaways

• Fourth-quarter revenue for JD.com reached RMB352.28 billion, reflecting 1.5% annual growth but falling short of the RMB352.89 billion analyst projection.
• The company reported earnings per share of RMB0.57, missing the RMB0.67 consensus forecast.
• Adjusted EBITDA flipped into negative territory at RMB0.8 billion, a dramatic decline from the RMB12.5 billion positive figure recorded in the prior-year period.
• JD.com recorded a quarterly net loss totaling RMB2.7 billion, contrasting sharply with the RMB9.9 billion profit achieved in Q4 2024.
• The board greenlit an annual dividend of $1.0 per ADS for 2025, representing approximately $1.4 billion in total distributions.

The Chinese e-commerce giant delivered fourth-quarter results that disappointed Wall Street, with key metrics trailing analyst projections across the board.

Revenue for the quarter climbed 1.5% from the year-ago period to RMB352.28 billion (roughly $51.12 billion). While showing growth, this figure came in below the Street’s RMB352.89 billion forecast. The shortfall may be modest, but it still represents a miss.

Earnings performance proved equally disappointing, with the company delivering RMB0.57 per share versus Wall Street’s RMB0.67 expectation.

JD.com, Inc., JD

The bottom-line deterioration was particularly striking. The e-commerce platform recorded a net loss of RMB2.7 billion attributable to shareholders, representing a dramatic turnaround from the RMB9.9 billion profit generated during the corresponding quarter last year.

Adjusted EBITDA performance similarly disappointed — sliding to negative RMB0.8 billion in the fourth quarter of 2025 versus positive RMB12.5 billion twelve months prior. The non-GAAP EBITDA margin contracted to negative 0.2% from 3.6%.

Core Retail Operations Show Margin Pressure

The JD Retail division, which represents the company’s primary business line, generated operating income of RMB9.8 billion during the quarter, edging down from RMB10.0 billion in the year-earlier period. The segment’s operating margin measured 3.2%, a slight contraction from the 3.3% recorded in Q4 2024.

For the full year, retail operations demonstrated more resilience. Xu noted that the segment delivered double-digit expansion in both top-line and operating profit throughout 2025.

JD.com has increasingly emphasized business diversification as a strategy to counterbalance challenges in its traditional e-commerce operations. The company is positioning its advertising business and instant retail services as growth channels with superior profitability profiles.

CFO Ian Su Shan highlighted 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.”

Sector Dynamics Create Growth Obstacles

The Chinese e-commerce landscape continues to intensify with fierce competition. Alibaba and PDD Holdings have both escalated promotional activity on their platforms, creating industry-wide margin pressure and pricing challenges.

Government stimulus programs that previously boosted JD’s performance — especially in categories like home appliances — are now creating difficult year-over-year comparisons as those benefits diminish.

Broader consumer sentiment in China remains subdued, with ongoing real estate market weakness and employment uncertainty constraining discretionary spending patterns.

Shares of JD.com traded slightly lower in pre-market activity following the earnings announcement.

Regarding capital allocation, the company’s board authorized an annual cash distribution of $1.0 per ADS for 2025. With a record date set for April 9, 2026, the total distribution is projected to reach approximately $1.4 billion.

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