China’s e-commerce giant JD.com ( JD ) stock gained after it reported fiscal third-quarter results on Thursday.

The company reported a quarterly revenue growth of 14.9% year-over-year (Y/Y) to $42.01 billion, beating the analyst consensus estimate of $41.33 billion.

JD posted an adjusted net income per ADS of 52 cents, beating the analyst consensus estimate of 34 cents.

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JD.com’s net product revenue increased by 10.5% Y/Y at $31.76 billion. Net service revenues rose 30.8% Y/Y to $10.25 billion. 

JD Retail revenue climbed 11.4% Y/Y to $35.2 billion, Logistics revenue gained 24.1% Y/Y to $7.74 billion, and the new business revenues grew 213.7% Y/Y to $2.19 billion.

Rising Costs and Margin Pressure

JD.com’s marketing expenses rose 110.5% to $3.0 billion in the quarter, forming 7.0% of revenues, up by 320 bps primarily due to the increased spending in promotional efforts for new business initiatives.

Operating margin was (0.4)% for the quarter, compared to 4.6% Y/Y. Adjusted operating margin stood at 0.1% compared to 5.0% Y/Y, primarily attributable to increased strategic investment in new business initiatives.

JD Retail’s operating margin rose 70 bps to 5.9%. 

Profitability And Cash Flow

Adjusted EBITDA decreased 83.6% Y/Y to $346 million, with a 0.8% margin, compared to 5.8% Y/Y.

The company reported free cash flow of ($1.58 billion) for the quarter, driven by operating cash flow of ($1.13 billion).

The company held $29.6 billion in cash and equivalents as of September 30, 2025.

Share Repurchases And Capital Allocation

Under its $5 billion share repurchase program launched in August 2024 and running through August 2027, the company bought back about 80.9 million shares (equal to 40.4 million ADSs) for roughly $1.5 billion in the nine months ending September 30, 2025. Close to $3.5 billion remained available under the program.

During the same period, the repurchased shares represented about 2.8% of the company’s total ordinary shares outstanding as of December 31, 2024.

Management Commentary

JD.com ( JD ) CEO Sandy Xu reported that the company sustained strong user growth and higher 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 growth opportunities in general merchandise and advertising services.

She added that JD Food Delivery continued scaling and achieved better unit economics, allowing for reduced investment during the quarter.

Price Action: JD stock was trading higher by 3.55% to $32.36 premarket at last check Thursday.

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