JDNEUTRAL

JD Gross Margin Analysis

16.8%

Higher than 17% of Consumer Cyclical sector peers

Updated 358h ago·SEC filings & market data

Key Takeaway

JD's gross margin of 16.8% means that for every dollar of revenue, the company keeps about 16.8 cents after covering the direct costs of producing the goods it sells.

Sector Performance

17th percentile

16.8%

Sector Median

36.5%

Sector Avg

30.1%

Prior Period

16.7%(May 2026)

→ Stable

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Deep Analysis

JD's gross margin of 16.8% means that for every dollar of revenue, the company keeps about 16.8 cents after covering the direct costs of producing the goods it sells.

This margin sits well below the sector median of 36.3%, placing JD in the 17th percentile among Consumer Cyclical peers, meaning roughly 83% of comparable companies have a higher gross margin. The year-over-year change is not available, but the quarter-over-quarter movement is a small increase of 0.6%, from 16.7% to 16.8%. The combination of a low absolute margin and a very modest upward trend implies that JD is operating with thin product-level profitability, which elevates risk if costs rise or pricing weakens, though the slight improvement offers a minor offset. This metric does not strongly contradict the overall NEUTRAL verdict: the low margin is a cautionary signal, but the stable, slightly rising trend prevents it from being a clear negative, so it aligns with a neutral stance rather than a bullish or bearish one.

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 36.5%, placing it in the 17th percentile.

Who are JD's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: URBN (36.6%), QSR (33.7%), CAVA (25.4%), BBY (23.5%), ROL (50.8%).

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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.