Quick Note - JD.com (JD US) (Buy) - Results beat; guidance disappoints

Research evidence excerpt

Quick Note - JD.com (JD US) (Buy) - Results beat; guidance disappoints

Global Markets Research

JD.com JD.OQ JD US 13 May 2026

EQUITY: MEDIA & INTERNET

Rating Results beat; guidance disappoints Remains Buy

Target price USD 40.00 RemainsQuick Note

Closing price USD 30.13 8 May 2026Key highlights

JD’s 1Q26 results beat Bloomberg consensus estimates across all its business segments.

JD Retail’s (JDR) revenue rose 2% y-y, while non-GAAP operating profit (OP) increased

16% y-y, coming in 16% above the Nomura estimate, backed by the higher margin of Research Analysts

JDR. China Internet & New Media

Jialong Shi - NIHKWithin JDR, the electronic goods (EG) category was noticeably weak due to a high base,

Jialong.shi@nomura.comdown 8% y-y. However, the general merchandise (GM) category maintained its strong

+852 2252 1409

momentum, with revenue up 15% y-y, driven by the JD Supermarket business, which is

Rachel Guo - NIHKthe largest category under GM.

rachel.guo@nomura.com

JD revealed that JDR’s gross margin improved by 1.8pp y-y in 1Q, driven by: 1) strong +852 2252 1400

supply chain capabilities, with JD’s 1P categories all seeing improving gross margins; and

2) an increased share of sales from the higher-margin 3P business, as evident in the solid

19% y-y revenue growth of its marketplace and ads.

Losses of its new business continued to narrow sequentially, with reported operating loss

at CNY10.4bn, vs. a loss of CNY14.8bn in 4Q25, largely in line with our projection of a

CNY10.7bn loss. Quick commerce (QC) contributed mainly to the loss reduction, with total

loss likely at CNY7-8bn, down from our estimated CNY10.5bn loss in 4Q25. JD anticipates

the losses of its new business to narrow notably this year, with significant loss reduction

for QC.