The Chinese e-commerce giant JD.com (NASDAQ: JD) shares rose after it reported fiscal third-quarter results on Thursday.
The company reported quarterly revenue growth of 14.9% year-over-year (Y/Y) to $42.01 billion, surpassing analysts’ consensus estimate of $41.33 billion.
JD posted adjusted net income per ADS of 52 cents, beating analysts’ consensus estimate of 34 cents.
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JD.com’s net product revenues rose 10.5% year over year to $31.76 billion. Net services revenue increased 30.8% year over year to $10.25 billion.
JD Retail’s revenue increased 11.4% year-over-year to $35.2 billion, logistics revenue increased 24.1% year-over-year to $7.74 billion, and new business revenue increased 213.7% year-over-year to $2.19 billion.
Rising costs and margin pressure
JD.com’s marketing expenses increased 110.5% to $3.0 billion in the quarter, accounting for 7.0% of revenue, an increase of 320 basis points, primarily due to increased spending on promotional efforts for new business initiatives.
Operating margin was (0.4)% for the quarter, compared to 4.6% year-over-year. Adjusted operating margin was 0.1% compared to 5.0% year over year, primarily due to increased strategic investments in new business initiatives.
JD Retail’s operating margin increased by 70 basis points to 5.9%.
Profitability and cash flow
Adjusted EBITDA fell 83.6% year over year to $346 million, with a margin of 0.8%, compared to 5.8% year over year.
The company reported free cash flow of ($1.58 billion) for the quarter, driven by operating cash flow of ($1.13 billion).
The company had $29.6 billion in cash and equivalents as of September 30, 2025.
Share repurchases and capital allocation
Under the $5 billion share buyback program launched in August 2024 and running through August 2027, the company repurchased approximately 80.9 million shares (equivalent to 40.4 million ADSs) for approximately $1.5 billion in the nine months ended September 30, 2025. Nearly $3.5 billion remained available under the program.
During the same period, the shares repurchased represented approximately 2.8% of the Company’s total outstanding common shares as of December 31, 2024.
Management commentary
CEO of JD.com Sandy Xu reported that the company experienced strong user growth and increased shopping frequency in the third quarter, with annual active customers surpassing 700 million in October.
Xu said JD Retail has strengthened its leadership in electronics and home appliances while tapping into growth opportunities in general merchandise and advertising services.
She added that JD Food Delivery continued to scale and achieve better unit operating results, helping to reduce capital expenditure during the quarter.
Price promotion: JD shares were trading 3.55% higher at $32.36 premarket at last check Thursday.
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