JD.com (NASDAQ:JD) focused on improving profitability in the second quarter even as revenue declined. Management described the period as an inflection point and expects JD Retail to return to revenue growth in the third quarter.

JD stock was trading lower by more than 3% during Friday’s premarket session. The decline comes despite modest gains in U.S. stock futures. Nasdaq futures are up 0.25%, while S&P 500 futures have gained 0.08%.

JD.com Earnings Beat Estimates, Revenue Falls

The company reported second-quarter 2026 adjusted net income of 93 cents per ADS, beating the 81-cent analyst estimate. Revenue fell 2.9% year over year to $51.05 billion, missing the $51.55 billion estimate.

The decline marked the company’s first quarterly revenue contraction since its 2014 listing. Softer consumer spending and a tough year-earlier comparison weighed on results.

Non-GAAP net income attributable to ordinary shareholders rose about 21% to 8.9 billion yuan.

CFO Ian Shan said core growth drivers remained healthy. These included general merchandise and marketplace and marketing revenue. However, electronics and home appliances remained weak.

Retail Margins Expand As Q3 Growth Comes Into Focus

JD Retail’s gross margin increased 1.3 percentage points to 18.5%. Its operating margin reached 4.6%, a record for a promotional season.

CEO Sandy Xu called the quarter "a definitive turning point for our profitability trajectory."

JD Food Delivery also narrowed its losses by more than 50% year over year. Improved operating efficiency and lower subsidy spending helped results.

JD Retail revenue declined 4.7% to 295 billion yuan. However, management said momentum improved in June.

"We expect this recovery trajectory to build further into Q3, making a pivot back to positive revenue growth for JD Retail," Shan said.

Management also reiterated its long-term target for a high-single-digit operating margin at JD Retail. Supply-chain efficiencies and a larger contribution from higher-margin commission and advertising revenue are expected to support that goal.

JD Expands AI And Delivery Automation

The company continues to expand its use of artificial intelligence and logistics automation. The technology spans forecasting, sourcing, customer service, search, advertising, warehousing and delivery.

Xu said JD.com launched its first round-the-clock autonomous delivery routes in Shenzhen during the second quarter.

The company also repurchased about $1 billion of shares during the first half of 2026.

ETFs With The Biggest JD Exposure

The Invesco Golden Dragon China ETF (NASDAQ:PGJ) has a 7.74% weighting in JD. The Robo Global Artificial Intelligence ETF (NYSE:THNQ) has 2.32% exposure, while the Distillate International Fundamental Stability and Value ETF (NYSE:DSTX) has a 1.48% weighting.

JD.com’s presence in these funds means ETF inflows and outflows can lead to corresponding buying or selling of the shares.

JD.com Price Action

JD Stock Price Activity: JD.com shares fell 3.45% to $28.29 in Friday’s premarket trading, according to Benzinga Pro data.

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