JD.com Inc (JD) reported its first quarterly loss since early 2022, posting a $392.9 million fourth-quarter deficit as aggressive food delivery subsidies and weak Chinese consumer spending pressured results. The Beijing-based e-commerce giant’s shift to losses signals mounting pressure from an intensifying delivery market battle that has weighed on China’s retail sector.
Key Takeaways
- JD posts $392.9 million Q4 loss, first since 2022
- Food delivery subsidies drive marketing costs up 75% annually
- Revenue growth slows to 1.5% in challenging Chinese market
Market Reaction & Financial Impact
JD.com shares rose about 1% in extended trading despite the disappointing results 1. The company reported fourth-quarter net revenues of 352.3 billion yuan ($50.4 billion), representing a modest 1.5% increase from the prior year and just beating analyst expectations of 349.9 billion yuan.
The quarterly loss of 2.7 billion yuan contrasts sharply with a 9.9 billion yuan profit in the same period last year 2. For the full year 2025, JD.com’s profit dropped nearly 53% to 19.6 billion yuan as the company invested heavily in its food delivery expansion.
Food Delivery Battle Intensifies Costs
Marketing expenses soared 75% annually to 84 billion yuan as JD.com competed aggressively with Alibaba Group and Meituan for food delivery market share 3. The company launched a 10 billion yuan subsidy program last year to challenge established players in China’s competitive online food delivery sector.
JD.com’s food delivery market share grew to 15% by the end of 2025, with management targeting a doubling to around one-third of the market by end-2026. In February, the company announced an additional 20 billion yuan subsidy program for its JD Supermarket grocery service.
Management Outlook
CEO Sandy Xu Ran acknowledged the investment cycle while expressing confidence in the strategy’s long-term benefits. “We continued to see robust user growth and increased shopping frequency during both the quarter and the full year,” Xu said in the earnings call 4.
CFO Ian Su Shan emphasized the company’s diversification efforts and commitment to shareholder returns. “Our revenue mix has become increasingly diversified, and as profitability strengthens across our categories and higher-margin businesses such as advertising contribute a larger share, we are confident that our profit streams will become more diversified as well,” Su Shan said 4.
Broader Market Challenges
The results reflect broader challenges facing China’s e-commerce sector amid dampened consumer spending and intense competition. Analysts noted that JD.com faces pressure from both traditional competitors and emerging AI-powered platforms that could disrupt the industry.
Wang Xiaoyan of 86Research said JD.com would likely focus on improving margins and narrowing food delivery losses to boost revenue. “In the long run, JD’s challenge is how to deal with AI-induced impact,” Wang said, noting potential disruption to the e-commerce business despite logistics benefits 3.
Shareholder Returns Continue
Despite the quarterly loss, JD.com maintained its commitment to shareholder returns with a total return rate of approximately 10% in 2025. The company repurchased 6.3% of outstanding shares for $3.0 billion and announced an annual cash dividend of $1.0 per American depositary share, totaling approximately $1.4 billion.
Looking ahead, JD.com plans to launch its Joybuy retail platform across Europe in March 2026 as part of international expansion efforts to capture growth beyond the challenging Chinese market.
Not investment advice. For informational purposes only.
References
1Bloomberg News (March 5, 2026). “JD.com Posts First Loss in Four Years on Weak Chinese Spending”. Bloomberg. Retrieved March 5, 2026.
2Ben Jiang (March 5, 2026). “JD.com posts first quarterly loss in nearly four years as delivery battle takes toll”. South China Morning Post. Retrieved March 5, 2026.
3Ben Jiang (March 5, 2026). “JD.com posts quarterly loss amid costly instant delivery battle”. South China Morning Post. Retrieved March 5, 2026.
4JD.com Inc (March 5, 2026). “JD.com Announces Fourth Quarter and Full Year 2025 Results, and Annual Dividend”. JD.com Investor Relations. Retrieved March 5, 2026.