Hong Kong · Delayed Price · Currency is HKD Alibaba Group Holding Earnings Call Transcripts
Fiscal Year 2026
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Revenue reached RMB 284.8B with strong growth in Cloud and Quick Commerce, but profitability declined due to heavy investment in AI and technology. Cloud external revenue grew 35% and Quick Commerce revenue rose 56%. Strategic targets include $100B in AI/cloud revenue and RMB 1T Quick Commerce GMV.
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Revenue grew 15% year-over-year, led by strong cloud and e-commerce performance, while net income fell 53% due to heavy investment in quick commerce and AI infrastructure. Cloud and AI-related products saw robust demand, but supply chain constraints may require higher CapEx.
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Revenue grew 10% year-over-year on a like-for-like basis, with cloud segment revenue up 26% and quick commerce driving user and order growth. Major investments in AI, cloud, and consumption platforms are fueling long-term growth, while profitability is impacted by heavy investment in strategic areas.
Fiscal Year 2025
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Revenue excluding Sun Art and Intime grew 10% year-over-year, with Adjusted EBITDA up 36%. Cloud revenue rose 18%, driven by robust AI demand, and e-commerce platforms saw strong user and merchant growth. Significant investments in AI, cloud, and instant commerce continue.
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Core e-commerce and AI+ Cloud businesses delivered strong growth, with AI-related revenue sustaining triple-digit gains for six quarters and overall revenue up 8%. Major investments in AI and cloud infrastructure are planned, supported by a robust balance sheet and ongoing share buybacks.
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Revenue grew 5% year-over-year to RMB 236.5B, with strong gains in cloud (7%) and AIDC (29%), but adjusted EBITDA fell 5% due to higher investments. Share repurchases reached $10B, and AI-related products drove cloud growth. Free cash flow dropped 70% from last year.
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Core businesses delivered steady growth, with Taobao/Tmall GMV and orders rising and AIDC revenue up 32% year-over-year. Cloud revenue grew 6% with strong AI demand, while loss-making segments narrowed losses. High CapEx in AI is expected to continue, with robust ROI due to strong customer demand.