JDNEUTRAL

JD Gross Margin Analysis

16.8%

Higher than 13% of Consumer Cyclical sector peers

Updated 179h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing the goods it sells, so JD’s 16.8% means it retains about 16.8 cents for every dollar of sales before other expenses.

Sector Performance

13th percentile

16.8%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

16.7%(May 2026)

→ Stable

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Deep Analysis

That figure sits well below the Consumer Cyclical sector median of 33.7%, placing JD in the 18th percentile among peers, which signals thinner pricing power or a heavier cost structure relative to its sector. The trend data is not available: both the year-over-year change and the quarter-over-quarter change are reported as N/A, so there is no evidence of improving or deteriorating margin momentum from this snapshot. With a low absolute margin and no trend to confirm direction, the risk is that JD remains structurally less profitable on each sale, but the lack of change also means no immediate deterioration to price in. This combination suggests the metric is a caution flag, not a growth trigger, and it aligns with the overall NEUTRAL verdict by neither strongly undermining nor boosting the case for the stock. Directly, the gross margin supports the neutral stance because it is weak versus peers but does not contradict the view given no visible trend.

Frequently Asked Questions

What does the Gross Margin tell investors about JD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does JD's Gross Margin compare to its sector?

JD's Gross Margin of 16.8% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 13th percentile.

Who are JD's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), AEO (33.9%), URBN (36.6%), GME (40.7%), RH (41.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.