JD.com, Inc. (JD) delivered better-than-expected Q1 2025 results, with net profit jumping 53% year-over-year to ¥10.89 billion ($1.51 billion), beating analysts’ forecast of ¥8.87 billion. Meanwhile, revenue climbed 16% to ¥301.08 billion, topping the consensus estimate of ¥287.35 billion. The solid performance reflects a recovery in Chinese consumer sentiment, which helped JD.com weather intense domestic competition and ongoing global trade uncertainty.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Despite JD.com’s solid Q1 earnings beat, its U.S.-listed shares edged lower in Tuesday’s premarket trading, likely pressured by broader market weakness following Monday’s strong rally.
JD.com Powers Through Tariff Worries
JD.com navigated the rough terrain, even as consumer sentiment was affected by U.S.-China trade tensions. Moreover, China’s consumer market has faced multiple obstacles in recent years, including a persistent property crisis and high unemployment rates.
However, JD.com resorted to significant price cuts and heavy discounts to attract shoppers. It has also leveraged government subsidies to stimulate consumption. Notably, the Chinese government has introduced purchase or trade-in subsidies to stimulate domestic consumption of various products, including appliances, smartphones, and cars to support the struggling economy.
Additionally, the company has intensified its marketing efforts and forged new partnerships with popular brands like Crocs (CROX) and Massimo Dutti. These collaborations aim to broaden its product range and attract more consumers to its platform. Among its segments, JD Retail accounted for over 80% of total revenue in Q1.
Commenting on the strong results, JD.com’s CEO, Sandy Xu, stated, “We had a strong start to the year, with solid performance on both the top and bottom lines.”
Is JD.com a Good Stock to Buy Now?
Overall, Wall Street analysts maintained a bullish sentiment on JD.com’s stock leading up to its Q1 results, and this positive outlook is expected to persist following the company’s impressive performance.
According to TipRanks, Wall Street has a Strong Buy consensus rating on JD stock based on 10 Buys and three Holds. The average JD.com stock price target of $50.54 implies a 40% upside potential.
