JD.com Cancels $3 Billion in Shares in Major Shareholder Value Push

BEIJING – January 08, 2026 – JD.com has executed a significant financial maneuver aimed at bolstering shareholder confidence, announcing today that it repurchased and subsequently cancelled approximately US$3.0 billion of its shares throughout 2025. The move, which permanently removes 6.3% of the company's outstanding shares from the market, sends a powerful message of management's belief in the firm's intrinsic value, even as its stock price navigates a volatile market.

The e-commerce and supply chain giant confirmed it bought back a total of 183.2 million Class A ordinary shares, equivalent to 91.6 million American depositary shares (ADSs), from both the Nasdaq and Hong Kong Stock Exchange. In a decisive step, all of these repurchased shares have been cancelled. This action is part of a larger US$5.0 billion share repurchase program approved in August 2024, leaving approximately US$2.0 billion available for future buybacks through August 2027.

This aggressive buyback and cancellation strategy is a direct method to enhance shareholder value. By reducing the total number of shares, the company's net income is spread across a smaller base, which mechanically increases earnings per share (EPS). This can make the stock appear more attractive to investors and potentially lead to a lower price-to-earnings (P/E) ratio, a key valuation metric. The move comes as JD.com's stock has been trading near the lower end of its 52-week range, suggesting that company leadership views its shares as significantly undervalued by the public market.

A Signal of Confidence Amidst Market Headwinds

The decision to deploy such a substantial amount of capital towards a buyback is widely interpreted as a strong signal of internal confidence in JD.com's future prospects and financial stability. With its NASDAQ-listed shares closing at $29.03 on January 7, 2026—near its 52-week low of $28.21—the repurchase program acts as a tangible statement that management believes the market is underestimating the company's long-term potential.

However, this bold move occurs against a backdrop of mixed financial performance and broader economic concerns. While JD.com reported a robust 14.9% year-over-year revenue increase to US$42.0 billion in its third quarter of 2025, its net income attributable to ordinary shareholders fell to US$0.7 billion, a steep drop from US$11.7 billion in the same period of 2024. This decline highlights the significant costs associated with the company's strategic investments.

This duality underscores the complex balancing act JD.com is performing: using its financial strength to reward shareholders in the present while simultaneously funding ambitious, and costly, initiatives designed to secure future growth. The share cancellation directly addresses shareholder returns, offering a concrete boost to per-share metrics in the face of profitability pressures from these long-term bets.

Balancing Buybacks with Strategic Growth

JD.com's capital allocation strategy is multi-pronged, extending far beyond share repurchases. The company continues to pour significant resources into research and development to fortify its core supply chain technology and its 'Retail as a Service' offering. R&D expenses saw a notable 28.4% increase in the third quarter of 2025, reaching US$0.8 billion. This commitment to innovation is central to its identity as a technology-driven enterprise.

Furthermore, the company is making aggressive inroads into new business areas, most notably food delivery. While this expansion presents a substantial long-term growth opportunity, it also requires heavy upfront investment that weighs on short-term profitability, as reflected in recent earnings reports. This spending is a primary reason for the divergence between the company's strong revenue growth and its declining net income.

Alongside the buyback program, JD.com also maintains a dividend policy, further cementing its commitment to returning capital to shareholders. For the 2024 fiscal year, the board approved an annual cash dividend totaling approximately US$1.5 billion. This combined approach of buybacks and dividends demonstrates a mature capital return framework, aiming to satisfy investor demands for immediate returns while management pursues its strategic vision.

Analyst Reactions and Wall Street's Mixed Verdict

Wall Street's reaction to JD.com's strategy has been cautiously optimistic, with a consensus "Moderate Buy" rating from analysts. Many see the share repurchase as a clear positive, validating the thesis that the company's stock is undervalued.

On January 7, 2026, analysts at Benchmark reiterated a "Buy" rating, noting that the stock's "highly depressed valuation" has likely already priced in many of the current market headwinds. Similarly, Citigroup maintained its "Buy" rating on January 2, though it lowered its price target from $44.00 to $37.00, citing concerns over softening consumer demand in key sectors like home appliances.

However, not all sentiment is positive. Zacks Research recently downgraded the stock to a "Strong Sell," reflecting deeper concerns about the company's near-term earnings outlook. This mixed sentiment captures the central tension for investors: weighing the immediate value enhancement of the buyback against the uncertainties of China's consumer market and the costs of JD.com's strategic pivots. The consensus price target of $41.44 suggests that many analysts still see significant upside from current levels, provided the company can successfully navigate these challenges.

A Diverging Path in China's Tech Arena

JD.com's capital return strategy places it in line with some of its peers while setting it apart from others in China's competitive tech landscape. E-commerce rival Alibaba has also been pursuing an aggressive share repurchase plan, having expanded its own program to a massive $25 billion, signaling that returning capital to shareholders is a priority for a mature tech giant in a turbulent market.

In sharp contrast, PDD Holdings, another major competitor, has explicitly stated its reluctance to engage in share repurchases or issue dividends in the near future, preferring to reinvest all available capital into growth. This divergence in strategy has reportedly disappointed some PDD investors and highlights a key philosophical split in how China's tech leaders are approaching capital allocation.

By committing to a multi-billion-dollar buyback and cancellation, JD.com is clearly aligning itself with a strategy of tangible shareholder rewards. This move not only supports its stock price but also serves as a competitive tool in the battle for investor capital, positioning the company as one that is actively focused on delivering value even as it invests for the future.