- Investment bank HSBC upgraded JD.com (NASDAQ: JD) to ‘Buy’ following robust first-quarter 2026 results, which significantly surpassed analyst expectations for both revenue and adjusted net income per ADS.
- The company’s service segment emerged as a key growth driver, with net service revenue surging by 20.6% to $10.28 billion, indicating successful diversification and strength in areas like the competitive food-delivery market.
- Despite heavy spending, JD.com has returned to profitability, effectively managing costs associated with its food-delivery expansion and positioning itself as a potential “deep value play” with a substantial 35.67% discount in its forward P/E ratio compared to its sector.
On May 15, 2026, investment bank HSBC upgraded its rating on JD.com (NASDAQ: JD) to ‘Buy’ when the stock was priced at $32.01. JD.com is a major Chinese e-commerce company that also operates in the competitive food-delivery market. It competes with other large technology firms like Meituan and Alibaba Group Holding Ltd. (NYSE: BABA).
The upgrade follows strong first-quarter 2026 results. As noted by Benzinga, JD.com reported revenue of $45.77 billion, a 4.9% year-over-year increase that beat analyst estimates. Its adjusted net income per ADS was $0.74, which was significantly higher than the $0.50 that Wall Street expected.
A key driver of this performance is the company’s service segment. Net service revenue grew by 20.6% to $10.28 billion. This growth is much faster than the 1.00% increase in net product revenue, which has been affected by weaker consumer spending in China. The food-delivery business has shown improving results.
Despite this growth, JD.com faces pressure on its profit margins from heavy spending. As highlighted by The Wall Street Journal, the company has returned to profitability. This suggests it is successfully managing costs from its entry into the food-delivery business, which began in 2025 and led to intense price competition.
A Seeking Alpha analysis views JD.com as a potential “deep value play.” Its forward price-to-earnings (P/E) ratio, a measure of a company’s stock price relative to its earnings, is at a 35.67% discount to its sector. Strategic moves like Joybuy’s European launch show management’s long-term confidence.
