China's e-commerce giant JD.com, Inc. (NASDAQ:JD) reported fiscal first-quarter 2026 results on Tuesday, posting revenue and earnings that topped Wall Street estimates despite rising costs and margin pressure.

The company reported first-quarter revenue of $45.77 billion, up 4.9% year over year and above the analyst consensus estimate of $45.57 billion.

Adjusted net income per ADS came in at 74 cents, beating analyst estimates of 50 cents.

A Wall Street Journal report said JD.com returned to profit in the first quarter with results that beat expectations, helped by improving performance in its food-delivery business.

The report noted the company had faced pressure after entering China's competitive food-delivery market in 2025, triggering heavy spending and price competition with rivals including Meituan (OTC:MPNGY) and Alibaba Group Holding Ltd. (NYSE:BABA).

Net product revenue increased 1% year over year to $35.49 billion, while net service revenue climbed 20.6% to $10.28 billion.

By segment, JD Retail revenue rose 1.8% to $38.94 billion. Logistics revenue increased 29% to $8.78 billion, while New Businesses revenue grew 9.1% to $910 million.

Marketing Costs Rise Amid Competition

JD.com's marketing expenses jumped 45.8% to $2.23 billion during the quarter, accounting for 4.9% of revenue, up 140 basis points from a year earlier. The company attributed the increase primarily to promotional spending tied to new business initiatives.

Operating margin declined to 1.2% from 3.5% a year earlier. Adjusted operating margin fell to 1.8% from 3.9%, mainly due to strategic investments in new business operations.

JD Retail's operating margin improved to 5.6% from 4.9% in the prior-year quarter.

Profitability And Cash Flow

Adjusted EBITDA totaled $1.16 billion, with a margin of 2.5%, down from 4.6% a year earlier.

The company used $940 million in free cash flow during the quarter after generating $80 million in operating cash flow.

As of March 31, 2026, JD.com held $31.3 billion in cash, cash equivalents, restricted cash and short-term investments.

JD.com Continues Aggressive Share Repurchases

Under its share repurchase program authorized in August 2024, JD.com repurchased about 44.5 million Class A ordinary shares, equivalent to 22.3 million ADSs, for approximately $631 million during the quarter.

The repurchased shares represented roughly 1.6% of the company's outstanding ordinary shares as of Dec. 31, 2025.

Executive Commentary

CEO Sandy Xu said the company delivered a solid start to 2026 as user growth and shopping frequency continued to improve, pushing annual active customers to a record high.

Xu added that stronger integration across JD's business ecosystem supported performance, while JD Retail maintained resilience and achieved record profitability.

Chief Financial Officer Ian Su Shan Shan said results were driven by steady growth at JD Retail, improved performance in general merchandise and higher-margin businesses such as marketplace and marketing services, as well as narrowing losses in New Businesses led by JD Food Delivery.

He also highlighted JD's shareholder return efforts, including the repurchase of about 1.6% of outstanding shares for $631 million during the quarter and the completion of its annual dividend payment in April.

JD.com Stock Rises Following First-Quarter Results

JD Price Action: JD.com shares were up 0.66% at $30.73 during premarket trading on Tuesday, according to Benzinga Pro data.

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