JD.com: The Subsidy Hangover Is Here; Downgrade To Hold

JD.com delivered Q1 FY26 revenue and EPS ahead of consensus, but macro headwinds and segmental weakness prompt a downgrade to 'Hold'. JD Retail's margin beat and reduced new business losses were offset by a sharp 8.4% decline in electronics and home appliances revenue, signaling subsidy exhaustion. Fierce competition from Alibaba, Meituan, and PDD in supermarkets and instant retail, plus lackluster differentiation in new ventures, challenge JD's growth outlook.