JD.com beats Q1 estimates as JPMorgan keeps overweight rating, $38 target

JD.com reported stronger-than-expected first-quarter 2026 earnings, with JPMorgan saying the market is underestimating the Chinese e-commerce company’s profit upside. JPMorgan maintained an overweight rating and a $38 price target on JD.com’s U.S.-listed shares. Adjusted net income rose to 7.4 billion yuan, 24% above JPMorgan’s estimate and 38% above consensus. GAAP net income increased 52% year over year to 5.8 billion yuan. Adjusted diluted EPS per ADS was 5.12 yuan, beating JPMorgan and Bloomberg consensus estimates by 26% and 44%, respectively. Revenue rose 5% to 315.7 billion yuan, slightly ahead of expectations, while service revenue grew 20.6%. JD Retail’s operating margin expanded 0.7 percentage point to a record 5.6%, helped by supply-chain efficiency, improved product mix and higher-margin advertising and commission revenue. Free cash outflow narrowed to 6.5 billion yuan from 21.6 billion yuan a year earlier. JPMorgan said on May 12, 2026, that consensus earnings estimates could rise by double digits in coming quarters.