JD.com, Inc ( JD ) reported fourth-quarter fiscal 2023 revenue growth of 3.6% year-on-year to $43.1 billion, beating the consensus of $42.2 billion.

The Alibaba Group Holding Limited ( BABA ) rival’s adjusted net income per ADS of $0.75 beat the consensus of $0.63. The stock price climbed after the results.

JD Segment Performance: JD.com’s net product revenue climbed by 3.7% Y/Y to $34.7 billion. Net service revenues rose 3.0% Y/Y to $8.4 billion. JD Retail revenue climbed 3.4% Y/Y to $37.7 billion.

Margin: Adjusted operating margin remained firm at 2.5%. Adjusted operating margin of JD Retail was 2.6%, versus 3.0% Y/Y. 

JD.com ( JD ) generated $1.87 billion in free cash flow for the quarter and held $27.8 billion in cash and equivalents as of December 31, 2023.

Buyback and Dividend: The board approved a new buyback program of up to $3.0 billion worth of its shares (including ADSs) over the next 36 months through March 2027.

The board also approved an annual cash dividend for the year ended December 31, 2023, of $0.38 per ordinary share, or $0.76 per ADS, to holders of ordinary shares and holders of ADSs.

CFO Ian Su Shan said, “Our core home appliance and electronics categories continued to outperform the industry, and general merchandise category returned to a growth trajectory in the quarter.” 

Investors can gain exposure to JD.com ( JD ) via Invesco Golden Dragon China ETF ( PGJ ) and VanEck Retail ETF ( RTH ) .

Price Action: JD shares traded higher by 11.7% at $23.95 in the premarket session on the last check Wednesday.