TLDR:
- JD.com reported Q1 adjusted net income of $1.8 billion on revenue of $41.5 billion, exceeding analyst expectations
- Net profit jumped 53% to $1.51 billion as consumer sentiment in China improved
- JD.com stock slipped 2.3% in premarket trading despite the positive results
- The company faces competition from Pinduoduo and ByteDance’s Douyin in China’s fragmented e-commerce landscape
- JD.com is relatively well-positioned against U.S. tariff concerns due to limited cross-border sales exposure
Chinese e-commerce giant JD.com reported strong first-quarter 2025 results on Tuesday, beating market expectations as consumer spending in China showed signs of recovery. However, the company’s stock still declined in premarket trading.
JD.com posted first-quarter adjusted net income of 12.8 billion Chinese yuan ($1.8 billion), with revenue rising 16% year-over-year to 301.1 billion yuan ($41.5 billion). These results surpassed analyst forecasts, which had projected net income of $1.5 billion on revenue of $39.6 billion, according to FactSet data.
The company’s net profit jumped an impressive 53% to 10.89 billion yuan ($1.51 billion) compared to the same period last year. This growth came despite challenges in China’s competitive e-commerce market.
JD.com CEO Sandy Xu attributed the strong performance to “improving consumer sentiment and continued enhancements to JD’s supply chain capabilities and user experience.” The Chinese economy received a boost from increased exports during the first quarter.
The retail division, which accounts for most of JD.com’s revenue, grew by 16%. Meanwhile, the company’s logistics sales increased by 11.5%.
Competitive Landscape and Growth Strategy
Despite the positive earnings report, JD.com faces intensifying competition in China’s e-commerce sector. Rivals like PDD Holdings’ Pinduoduo and ByteDance’s Douyin have gained popularity by adapting to consumer trends and offering new, interactive shopping experiences.
To maintain its competitive edge, JD.com has been expanding aggressively into China’s on-demand delivery market since early 2025. The company recently announced plans to hire 100,000 full-time riders to grow its new food-delivery business, directly challenging competitors like Meituan and Alibaba Group.
This strategic move reflects JD.com’s efforts to diversify its service offerings and capture additional market share in China’s digital economy.
Tariff Concerns and Market Reaction
Despite the better-than-expected results, JD.com’s American depositary receipts slipped 2.3% in premarket trading on Tuesday. This followed a 6.5% surge on Monday, which came after news that the U.S. and China had agreed to lower tariffs.
Concerns about U.S. tariffs have created uncertainty for Chinese e-commerce companies. Many have had to raise prices as the U.S. increased duties on foreign goods and eliminated exemptions for low-value items.
However, analysts from Citi noted that JD.com is “relatively well-positioned” amid these uncertainties due to its limited exposure to cross-border sales. The recent de-escalation of tariff tensions between the U.S. and China could further brighten the outlook for retailers like JD.com.
Monday’s news of the two countries agreeing to lower tariffs helped boost shares of JD.com and several of its peers. However, the stock fell more than 1.5% in premarket trading after Tuesday’s earnings announcement.
JD.com may also benefit from China’s efforts to stimulate domestic consumption, particularly through trade-in programs that encourage consumers to swap goods like phones and home appliances. Beijing recently unveiled policy measures aimed at boosting consumer demand.
However, given the improving trade relations with Washington, Citi analysts believe the next round of Chinese policy support might be delayed unless the economy shows more signs of weakening.
The stock movements of JD.com’s competitors reflected similar patterns in premarket trading. ADRs for rival Alibaba Group slipped 2.7%, while ADRs for Temu parent PDD Holdings were down 1.3%.
JD.com’s first-quarter results highlight the company’s resilience in a challenging market environment, with strong growth in both revenue and profit despite competitive pressures and trade uncertainties.
