JD.com Revenue Dips Amidst Price War and Weak Consumer Demand

JD.com Inc. reported its first quarterly revenue decline, with net revenue falling 2.9% to 346.4 billion yuan in the second quarter of 2026. This contraction, the company's first since its listing, was attributed to reduced government subsidies impacting electronics and home appliance sales, its core business, and a price war in food delivery. Despite the revenue dip, JD.com saw its net profit increase by 14.5% year-on-year to 7.1 billion yuan ($1.1 billion), surpassing market expectations. CEO Sandy Xu Ran cited the profitability of core retail divisions and narrowing losses in new business areas, such as food delivery, as drivers for the strong bottom-line growth. The core retail segment generated an operating income of 13.5 billion yuan. The company plans to build on this profitability in the second half of the year.