JD.com (NASDAQ:JD) is making a bet that it can have its cake and eat it too. The Chinese e-commerce giant reported second-quarter earnings that beat analyst estimates, but revenue took a hit. Management says that's all part of the plan, and they're calling it a turning point.

Shares were down more than 3% in Friday's premarket session, even as U.S. stock futures showed modest gains. Nasdaq futures were up 0.25%, and S&P 500 futures gained 0.08%. So the market is a bit skeptical, but let's dig into the numbers.

JD.com Earnings Beat Estimates, Revenue Falls

The company reported second-quarter 2026 adjusted net income of 93 cents per ADS, beating the 81-cent analyst estimate. Revenue fell 2.9% year over year to $51.05 billion, missing the $51.55 billion estimate.

That decline marked the company's first quarterly revenue contraction since its 2014 listing. Softer consumer spending and a tough year-earlier comparison weighed on results. But here's the interesting part: non-GAAP net income attributable to ordinary shareholders rose about 21% to 8.9 billion yuan.

CFO Ian Shan said core growth drivers remained healthy, including general merchandise and marketplace and marketing revenue. However, electronics and home appliances remained weak.

Retail Margins Expand As Q3 Growth Comes Into Focus

JD Retail's gross margin increased 1.3 percentage points to 18.5%. Its operating margin reached 4.6%, a record for a promotional season. That's a big deal, because promotional seasons usually mean thinner margins.

CEO Sandy Xu called the quarter "a definitive turning point for our profitability trajectory." That's a strong statement, and the numbers back it up.

JD Food Delivery also narrowed its losses by more than 50% year over year. Improved operating efficiency and lower subsidy spending helped results.

JD Retail revenue declined 4.7% to 295 billion yuan. However, management said momentum improved in June. "We expect this recovery trajectory to build further into Q3, making a pivot back to positive revenue growth for JD Retail," Shan said.

Management also reiterated its long-term target for a high-single-digit operating margin at JD Retail. Supply-chain efficiencies and a larger contribution from higher-margin commission and advertising revenue are expected to support that goal.

JD Expands AI And Delivery Automation

The company continues to expand its use of artificial intelligence and logistics automation. The technology spans forecasting, sourcing, customer service, search, advertising, warehousing and delivery.

Xu said JD.com launched its first round-the-clock autonomous delivery routes in Shenzhen during the second quarter. That's a nice concrete example of how they're putting AI to work.

The company also repurchased about $1 billion of shares during the first half of 2026. That's a signal that management thinks the stock is undervalued, or at least that they want to return capital to shareholders.

ETFs With The Biggest JD Exposure

If you're looking to get exposure to JD.com through an ETF, here are a few options. The Invesco Golden Dragon China ETF (NASDAQ:PGJ) has a 7.74% weighting in JD. The Robo Global Artificial Intelligence ETF (NYSE:THNQ) has 2.32% exposure, while the Distillate International Fundamental Stability and Value ETF (NYSE:DSTX) has a 1.48% weighting.

JD.com's presence in these funds means ETF inflows and outflows can lead to corresponding buying or selling of the shares. So if you see big moves in JD stock, it might not just be about the company's fundamentals.

JD.com Price Action

JD.com shares fell 3.45% to $28.29 in Friday's premarket trading, according to market data.