Alibaba Group Holding Limited (BABA)

Alibaba Shares Drop on China AI Infrastructure Spending Report, but Citi Sees Long-Term Benefits (BABA)June 10, 2026 8:41 AM
IH Market News Investor Concerns Emerge Following AI Investment Plans Alibaba (NYSE:BABA) shares declined around 3% in U.S. premarket trading on Wednesday after a Bloomberg report indicated that China could invest approximately 2 trillion yuan over the next five years to expand data centre infrastructure in support of the country’s artificial intelligence ambitions. The report sparked concerns that a large-scale, government-backed expansion of computing capacity could increase competition for private cloud providers and potentially pressure pricing across the sector. Investors reacted by selling shares of major Chinese technology companies with significant cloud operations, including Alibaba, Tencent and Baidu. Market Worries Focus on Potential Oversupply The primary concern among investors is that state-funded data centres could dilute returns on private-sector investments by creating excess capacity within China’s rapidly growing AI ecosystem. Market participants fear that government-backed infrastructure projects may reduce demand for services offered by commercial cloud operators, potentially affecting profitability and long-term growth prospects. However, analysts at Citi believe these concerns are premature. “We view these market concerns as premature,” the bank’s analysts said. “We believe this government investment should not be seen as a ‘zero-sum-game” for private hyperscalers like BABA, Tencent and Baidu.” Citi Expects Public and Private Capacity to Serve Different Markets According to Citi, the government’s objective is likely to be broader AI adoption across state-owned enterprises and smaller businesses that may not have the resources to absorb the high costs associated with advanced AI usage. Under that scenario, publicly funded infrastructure would primarily support those customers, while Alibaba and other hyperscale cloud providers could continue focusing on larger corporate clients that require dedicated services, customised solutions and ongoing technological support. The analysts noted that this division of the market could allow private cloud operators to maintain stronger margins while government projects help accelerate overall AI adoption. Lower Capital Spending Could Benefit Alibaba Citi also highlighted potential advantages for Alibaba stemming from the proposed infrastructure programme. Rather than funding every new data centre internally, the company could increasingly lease capacity from government-backed facilities, reducing the need for large upfront capital investments. This could free up additional resources for strategic priorities such as semiconductor development, AI model training, product innovation and new enterprise solutions. The analysts also pointed out that government investment in high-speed computing infrastructure and network connectivity could improve efficiency throughout the AI ecosystem, potentially lowering latency and reducing data transmission costs for cloud providers. Long-Term Opportunities Remain Intact Citi believes the projects will take considerable time to secure financing and become operational, limiting any immediate impact on the market. Once completed, the additional infrastructure could provide cloud operators with greater flexibility by allowing them to lease rather than build portions of their capacity, improving capital efficiency and supporting future expansion plans. The bank argued that such a shift could help companies like Alibaba allocate more resources toward international growth initiatives and research and development efforts. Citi maintained its Buy rating on Alibaba and reiterated its $208 price target. More about Alibaba Alibaba Group is one of China’s largest technology companies, operating businesses across e-commerce, cloud computing, digital media, logistics and artificial intelligence. Through Alibaba Cloud, the company is a leading provider of cloud infrastructure and AI services, serving enterprises, governments and developers across China and international markets. Alibaba Group Holdings stock price Original: Alibaba Shares Drop on China AI Infrastructure Spending Report, but Citi Sees Long-Term Benefits (BABA)

Easy Money!!

SpaceX IPO targets retail investors as hype builds around record-breaking debutMay 26, 2026 10:01 AM
IH Market News After several sluggish years for the IPO market, SpaceX is preparing to make its public market debut in what could become the largest stock offering in history. The company plans to begin trading on the Nasdaq on June 12 under the ticker symbol SPCX following the filing of its S-1 registration statement. The proposed offering could value SpaceX at as much as $2 trillion, instantly making it one of the most valuable publicly traded companies in the world and reigniting excitement across Wall Street after a prolonged drought in major IPO activity. Elon Musk opens the door to retail investors Unlike many blockbuster IPOs that heavily favor institutional investors and large funds, SpaceX appears to be actively encouraging participation from retail traders. In its S-1 filing, the company stated that, “Certain of the shares of Class A common stock offered hereby will, at our request, be offered to retail investors.” According to the filing, shares are expected to be accessible through brokerage platforms including Charles Schwab (SCHW), Fidelity Investments, Robinhood (HOOD), SoFi Technologies (SOFI) and Morgan Stanley’s E*TRADE platform. The move could generate enormous interest among individual investors eager to gain exposure to one of the world’s most sought-after private technology companies. Strong growth accompanied by heavy losses SpaceX reported $18.7 billion in revenue last year, according to its filing, as the company continued expanding its Starlink satellite internet business and maintaining dominance in commercial space launches. However, the filing also showed that SpaceX recorded a net loss of $4.9 billion as spending accelerated across artificial intelligence infrastructure, Starship rocket development and satellite deployment programs. Despite those losses, market enthusiasm surrounding Elon Musk and SpaceX is expected to remain strong when trading begins. Nasdaq rule changes could fuel immediate buying pressure The article argues that the IPO structure itself may intensify speculative momentum. Nasdaq recently updated its listing rules to allow mega-cap IPOs to enter major market indexes more rapidly than in the past. According to Reuters, the exchange’s new “fast entry” framework was designed specifically with enormous offerings such as SpaceX, OpenAI and Anthropic in mind. If SpaceX debuts near a $2 trillion valuation, index funds could be required to purchase billions of dollars worth of shares shortly after listing, potentially driving sharp early gains. History shows IPO hype can fade quickly While the initial enthusiasm may support the stock in the short term, the article points to several high-profile IPOs that later suffered steep declines after early excitement faded. Meta Platforms (NASDAQ:META) reportedly fell 47% during its first six months as a public company, while Alibaba Group (NYSE:BABA) declined 26% following its debut. Coinbase (NASDAQ:COIN) lost 75% within a year of listing, and Rivian (NASDAQ:RIVN) dropped roughly 80% from its peak. The article also cites Nasdaq data indicating that nearly 64% of IPOs underperform the broader market by more than 10 percentage points during their first three years of trading. Long-term potential may not justify immediate buying The article emphasizes that these concerns do not necessarily reflect weakness in SpaceX’s underlying business. Instead, the warning centers on valuation risk, speculative enthusiasm and the possibility that investors may overpay amid peak excitement. The piece concludes that SpaceX could eventually become one of the world’s most important public companies because of its strength in launch services, satellite internet and defense infrastructure. However, it argues that the current IPO setup — driven by retail participation, forced index buying, meme-stock enthusiasm and a historically rich valuation — may create excessive short-term hype. According to the article, long-term investors may ultimately find opportunities to own SpaceX shares at more attractive prices after the initial frenzy surrounding the June 12 listing subsides. Meta stock price Alibaba Group Holdings stock price Coinbase stock price Rivian Automotive stock price Original: SpaceX IPO targets retail investors as hype builds around record-breaking debut

BABA, is this the bottom

Alibaba launches new AI chip to strengthen domestic semiconductor ambitions (BABA)May 20, 2026 6:29 AM
IH Market News Alibaba Group Holding Limited (NYSE:BABA) on Wednesday introduced a new artificial intelligence chip, the Zhenwu M890, as the company accelerates efforts to develop Chinese-made alternatives to processors supplied by NVIDIA Corporation amid tighter U.S. export restrictions.The processor was developed by Alibaba’s chip-design unit T-Head and delivers performance roughly three times greater than the previous-generation Zhenwu 810E. The chip has been specifically designed for the next generation of AI “agents,” software systems capable of handling complex multi-step tasks with minimal human supervision. Designed for advanced AI agent workloads Alibaba said the Zhenwu M890 is optimised for workloads requiring intensive memory use and high-speed communication, particularly for AI agent systems that must process long context windows and coordinate with other models in real time.The group also presented a long-term semiconductor roadmap, revealing plans to launch a successor chip called the V900 in the third quarter of 2027, followed by another processor, the J900, in the third quarter of 2028.According to Alibaba, the V900 is expected to provide another approximate threefold improvement in performance compared with the M890, highlighting the company’s intention to maintain a consistent pace of internal chip development. China pushes for greater AI chip independence Alibaba’s latest announcement reflects broader efforts across China’s technology sector to reduce reliance on foreign AI semiconductors as Washington continues restricting sales of advanced U.S.-made processors to Chinese companies.The move follows similar initiatives announced by Huawei Technologies Co., Ltd. last year.The Hangzhou-based company previously pledged to invest more than 380 billion yuan ($53 billion) over three years into cloud computing and artificial intelligence infrastructure, marking the largest technology investment commitment in Alibaba’s history.The spending plan reflects growing expectations across China’s technology industry that demand for AI computing power will continue rising rapidly as businesses increasingly adopt agent-based AI applications. Alibaba unveils new server system and upgraded language model Alibaba presented the new chip during its annual Alibaba Cloud Summit alongside a server platform called the Panjiu AL128, which integrates 128 Zhenwu accelerators into a single rack system.The platform is immediately available to enterprise customers in China through Alibaba Cloud’s domestic AI model platform, Bailian.T-Head said more than 560,000 Zhenwu chips have already been shipped, with over 400 external customers across 20 industries — including automotive and financial services companies — currently using the processors.Alibaba also introduced Qwen 3.7-Max, the latest version of its flagship large language model. The company said the model has been specifically engineered for advanced coding applications and long-duration AI agent operations.According to Alibaba, the model is capable of operating continuously for up to 35 hours without any decline in performance.Alibaba Group Holdings stock price Original: Alibaba launches new AI chip to strengthen domestic semiconductor ambitions (BABA)

BABA's Cloud and AI businesses must be hitting their stride

Alibaba shares retreat after quarterly revenue falls short of forecasts despite cloud and AI momentum (BABA)May 13, 2026 6:28 AM
IH Market News Shares of Alibaba Group (NYSE:BABA) moved lower in U.S. premarket trading on Wednesday after the company posted quarterly revenue that came in slightly below analyst expectations, even as its cloud computing and artificial intelligence operations continued to deliver strong growth.Alibaba reported revenue of 243.4 billion yuan for the quarter ended March 31, representing a 3% increase from a year earlier but falling short of the 247.1 billion yuan consensus estimate.The company said that, excluding divested operations including Sun Art and Intime, revenue increased 11% on a like-for-like basis.Alibaba shares were down nearly 2% in premarket trading by 06:03 ET. Cloud and AI businesses continue rapid expansion Revenue from Alibaba’s Cloud Intelligence Group surged 38% year-on-year to 41.6 billion yuan, slightly ahead of analyst expectations of 41.27 billion yuan.Growth from external cloud customers accelerated to 40% during the quarter, highlighting continued demand for the company’s cloud infrastructure and enterprise services.Revenue generated from AI-related products reached 8.97 billion yuan, marking the eleventh consecutive quarter of triple-digit annual growth. Alibaba said the increase was driven by rising adoption of public cloud services and artificial intelligence products. Domestic e-commerce supported by government subsidies China’s online retail sector received additional support during the quarter from a new round of government subsidy programmes encouraging consumers to trade in electronic products.Revenue from Alibaba’s domestic e-commerce operations totaled 122.22 billion yuan, exceeding analyst forecasts of 119.85 billion yuan. Alibaba approves annual cash dividend Alibaba’s board also approved an annual cash dividend of $0.13125 per ordinary share, equivalent to $1.05 per American depositary share.The dividend will be paid to shareholders on record as of June 11.Alibaba Group Holdings stock price Original: Alibaba shares retreat after quarterly revenue falls short of forecasts despite cloud and AI momentum (BABA)

Alibaba Group Announces March Quarter 2026 and Fiscal Year 2026 ResultsMay 13, 2026 5:30 AM
Business Wire Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba”, “Alibaba Group” or the “company”) today announced its financial results for the quarter and fiscal year ended March 31, 2026. “Alibaba’s full-stack AI investments have progressed from incubation to commercialization at scale. This quarter, we achieved accelerated breakthroughs across models, cloud infrastructure, and applications,” said Eddie Wu, Chief Executive Officer of Alibaba Group. “Cloud Intelligence Group’s external revenue growth accelerated to 40%, with AI-related products accounting for 30% of this revenue. Our Qwen LLM demonstrated leadership in reasoning and coding while we strengthened our multimodal model portfolio with the launch of video generation and world models. As we see massive potential for agentic AI, we launched multiple enterprise AI agents for office and coding use cases, and we fully integrated e-commerce capabilities into the consumer-facing Qwen app, deepening synergies between AI and our consumer ecosystem.” “Our strategic investments continued to translate into business growth. Cloud Intelligence Group’s revenue continued to accelerate, with AI-related product revenue achieving triple-digit growth for the eleventh consecutive quarter. China e-commerce customer management revenue grew 8% on a like-for-like basis. The unit economics and average order value of quick commerce steadily improved. We are confident in our business outlook and will continue to invest in AI + Cloud to strengthen our competitive advantages,” said Toby Xu, Chief Financial Officer of Alibaba Group. BUSINESS HIGHLIGHTS In the quarter ended March 31, 2026: Revenue was RMB243,380 million (US$35,283 million), an increase of 3% year-over-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 11% year-over-year. Customer management revenue increased by 1% year-over-year. Excluding the contra revenue impact from the new business development program, customer management revenue on a like-for-like basis would have grown by 8% year-over-year. Loss from operations was RMB848 million (US$123 million), compared to an income from operations of RMB28,465 million in the same quarter of 2025, primarily due to the decrease in adjusted EBITA. Adjusted EBITA, a non-GAAP measurement, decreased 84% year-over-year to RMB5,102 million (US$740 million), primarily attributable to the investment in technology businesses, quick commerce and user experiences, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. Net income attributable to ordinary shareholders was RMB25,476 million (US$3,693 million). Net income was RMB23,502 million (US$3,407 million), an increase of 96% year-over-year, primarily attributable to the year-over-year increase in net gain from mark-to-market changes of our equity investments, and disposal losses of Sun Art and Intime in the same quarter last year, partly offset by the decrease in adjusted EBITA. Non-GAAP net income in the quarter ended March 31, 2026 was RMB86 million (US$12 million), a decrease of 100% compared to RMB29,847 million in the same quarter of 2025. Diluted earnings per ADS was RMB10.36 (US$1.50). Diluted earnings per share was RMB1.30 (US$0.19 or HK$1.47). Non-GAAP diluted earnings per ADS was RMB0.62 (US$0.09), a decrease of 95% year-over-year. Non-GAAP diluted earnings per share was RMB0.08 (US$0.01 or HK$0.09), a decrease of 95% year-over-year. Net cash provided by operating activities was RMB9,410 million (US$1,364 million), a decrease of 66% compared to RMB27,520 million in the same quarter of 2025. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB17,300 million (US$2,508 million), compared to an inflow of RMB3,743 million in the same quarter of 2025. The decrease in free cash flow was mainly attributed to the investment in quick commerce, user acquisition of Qwen app and increase in our cloud infrastructure expenditure. As of March 31, 2026, our cash and other liquid investments(1) were RMB520,824 million (US$75,504 million). In the fiscal year ended March 31, 2026: Revenue was RMB1,023,670 million (US$148,401 million), an increase of 3% year-over-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 11% year-over-year. Customer management revenue increased by 5% year-over-year. Excluding the contra revenue impact from the new business development program, customer management revenue on a like-for-like basis would have grown by 7% year-over-year. Income from operations was RMB50,150 million (US$7,270 million), a decrease of 64% year-over-year, primarily due to the decrease in adjusted EBITA and increase in impairment of goodwill, partly offset by the decrease in one-time provisions and non-cash share-based expenses. Adjusted EBITA, a non-GAAP measurement, decreased 56% year-over-year to RMB76,416 million (US$11,078 million), primarily attributable to the investment in quick commerce, user experiences, and technology businesses, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. Net income attributable to ordinary shareholders was RMB105,904 million (US$15,353 million). Net income was RMB102,127 million (US$14,805 million), a decrease of 19% year-over-year, primarily attributable to the decrease in income from operations, partly offset by the year-over-year increase in net gain from mark-to-market changes of our equity investments, as well as net gains from disposal of investments, including local consumer service business of Trendyol in fiscal year 2026, compared to losses on disposal of Sun Art and Intime in fiscal year 2025. Non-GAAP net income in fiscal year 2026 was RMB60,658 million (US$8,794 million), a decrease of 62% compared to RMB158,122 million in fiscal year 2025. Diluted earnings per ADS was RMB44.00 (US$6.38). Diluted earnings per share was RMB5.50 (US$0.80 or HK$6.23). Non-GAAP diluted earnings per ADS was RMB26.80 (US$3.89), a decrease of 59% year-over-year. Non-GAAP diluted earnings per share was RMB3.35 (US$0.49 or HK$3.79), a decrease of 59% year-over-year. Net cash provided by operating activities was RMB76,213 million (US$11,049 million), a decrease of 53% compared to RMB163,509 million in fiscal year 2025. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB46,609 million (US$6,757 million), compared to an inflow of RMB73,870 million in fiscal year 2025. The decrease in free cash flow was mainly attributed to the investment in quick commerce and increase in our cloud infrastructure expenditure. As of March 31, 2026, our cash and other liquid investments(1) were RMB520,824 million (US$75,504 million). Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement. ____________________ (1) Cash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use. BUSINESS AND STRATEGIC UPDATES Consumption Businesses Alibaba China E-commerce Group We are prioritizing the integration of AI capabilities with our e-commerce applications to enhance the experiences for both consumers and merchants. On the consumer side, we integrated Taobao and Tmall e-commerce service into the Qwen app, thereby expanding Qwen’s user reach and adding a brand new AI-driven experience for our Taobao and Tmall customers. Additionally, the Taobao app launched the Qwen Shopping Assistant, an AI agent providing end-to-end assistance across the entire shopping journey, including idea generation, product discovery, in-sale support, order management, and post-purchase services. For merchants, we rolled out Wukong, our AI-native enterprise agent that integrates advanced agentic capabilities into workflow to bring efficiency to merchant operations. To help merchants grow their businesses and increase willingness to spend on our platform, we upgraded our business development program for select merchants during the quarter, under which the level of platform subsidies for these merchants is directly tied to their marketing spend on our platform. For accounting purposes, such subsidies previously recorded as sales and marketing expenses are now recorded as a contra revenue item to customer management revenue (CMR). Accordingly, CMR grew 1% year-over-year during the quarter. Excluding the contra revenue impact from the program, on a like-for-like basis, CMR would have grown 8% year-over-year. Our quick commerce business remained focused on scaling the business while improving unit economics, with increasing focus on high-value food orders and non-food categories. The quick commerce business further improved unit economics, and increased average order value quarter-over-quarter primarily driven by order mix optimization. The number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 62 million. We remain focused on the retention of 88VIP members through enhanced value proposition to our most valued customers. Alibaba International Digital Commerce Group (“AIDC”) During the quarter, AIDC narrowed loss significantly year-over-year, approaching break-even, driven by a combination of logistics optimization and operating efficiency. The unit economics of the AliExpress’ Choice business continued to improve substantially on a sequential basis. We aim to diversify and enrich our product offerings by leveraging the supply chain advantages of the Alibaba ecosystem. AliExpress’ “Brand+” program further accelerated brand onboarding, and the penetration of quarterly transacting consumers for “Brand+” surpassed 30% during the quarter. Our international wholesale platform, Alibaba.com, continued to broaden adoption of its AI-powered tools among merchants. In addition to our established AI sourcing agent Accio, we also launched Accio Work, an agentic business platform designed to handle the full operating lifecycle of global small and medium-sized businesses beyond sourcing alone, aiming to significantly lower the entry barrier for cross-border commerce and enhance operational efficiency. AI + Cloud Businesses Cloud Intelligence Group For the quarter ended March 31, 2026, revenue from Cloud Intelligence Group was RMB41,626 million (US$6,035 million), a 38% increase from the same quarter last year. Notably, the year-over-year growth of revenue from external customers accelerated to 40%. This momentum was primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products. AI-related product revenue continued to show strong momentum, achieving RMB8,971 million and delivering the eleventh consecutive quarter of triple-digit year-over-year growth. Alibaba Cloud continues to onboard more customers to our comprehensive AI + cloud products and services, including high-performance networking, distributed storage, cloud operating system, and services for model training and inference. We are executing our strategy to lead China’s AI cloud market through our comprehensive full-stack AI capabilities across AI models, AI cloud infrastructure, and orchestration software that manages heterogeneous chip clusters, including our own proprietary inference chips. During the quarter, we focused on executing our Model-as-a-Service (MaaS) strategy. As we observed rapidly increasing demand for MaaS, we launched a diverse portfolio of offerings on our MaaS platform Model Studio tailored to users ranging from individual developers to large enterprises. This comprises an expanded lineup of state-of-the-art models such as Qwen3.6-Plus, enterprise solutions with flexible Token Plans, and a growing suite of agents including Wukong, Meoo, and industry-specific agents. As a result, the customer base for Model Studio grew by eight-fold year-over-year as of March 2026. Model We continue to push the boundaries of AI capabilities through deep innovation, and we achieved significant breakthroughs in model intelligence recently through a series of new model launches within our large language and multimodal model portfolio. In March, we introduced Qwen3.6-Plus which delivered significant all-round performance gains, with particularly notable improvements in coding and agentic programming. It achieves state-of-the-art results across front-end web development and complex repository-level tasks. Qwen3.6-Plus also features enhanced multimodal perception and reasoning, and a native context window of up to 1 million tokens, while further improving stability and reliability. Complementing the Qwen family, we are also advancing specialized models including HappyOyster, a world model enabling real-time creation and interaction, and HappyHorse, a multimodal model for video generation. The commercialization of both models is currently being rolled out in phases. Chip Design – T-Head T-Head Semiconductor Co., Ltd. (“T-Head”), our chip design subsidiary, has achieved widespread industrial application of its proprietary AI chips, with the automotive sector serving as a leading example of large-scale adoption. Over 100,000 Zhenwu PPUs have been deployed on Alibaba Cloud’s public cloud platform, with more than 30 leading automakers and autonomous driving companies leveraging the chips for intelligent driving R&D. The Zhenwu chips, together with Alibaba Cloud and Qwen models, form a fully integrated technology stack that significantly accelerates both training and inference efficiency. Dividends Our board of directors has approved an annual regular cash dividend for fiscal year 2026 in the amount of US$0.13125 per ordinary share or US$1.05 per ADS, payable in U.S. dollars, to holders of ordinary shares and holders of ADSs, as of the close of business on June 11, 2026, Hong Kong Time and New York Time, respectively. The aggregate amount of the dividend will be approximately US$2.5 billion. As at the date hereof, the company does not hold any treasury shares whether in the Central Clearing and Settlement System, or otherwise. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, not later than 4:30 p.m. on June 11, 2026, Hong Kong Time. The payment date is expected to be on or around July 6, 2026 for holders of ordinary shares and on or around July 13, 2026 for holders of ADSs. MARCH QUARTER SUMMARY FINANCIAL RESULTS   Three months ended March 31,       2025   2026       RMB   RMB   US$   YoY %
Change   (in millions, except percentages and per share amounts)           Revenue 236,454   243,380   35,283   3%                 Income (Loss) from operations 28,465(2)   (848)(2)   (123)   N/A Operating margin 12%   0%         Adjusted EBITDA(1) 41,783   16,435   2,383   (61)%(2) Adjusted EBITDA margin(1) 18%   7%         Adjusted EBITA(1) 32,616   5,102   740   (84)%(2) Adjusted EBITA margin(1) 14%   2%                         Net income 11,973   23,502   3,407   96%(3) Net income attributable to ordinary shareholders 12,382   25,476   3,693   106%(3) Non-GAAP net income(1) 29,847   86   12   (100)%(2)                 Diluted earnings per share(4) 0.65   1.30   0.19   101%(3)(5) Diluted earnings per ADS(4) 5.17   10.36   1.50   101%(3)(5) Non-GAAP diluted earnings per share(1)(4) 1.57   0.08   0.01   (95)%(2)(5) Non-GAAP diluted earnings per ADS(1)(4) 12.52   0.62   0.09   (95)%(2)(5) ____________________ (1) See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement. (2) The year-over-year decreases were primarily attributable to the investment in technology businesses, quick commerce and user experiences, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. (3) The year-over-year increases were primarily attributable to the year-over-year increase in net gain from mark-to-market changes of our equity investments, and disposal losses of Sun Art and Intime in the same quarter last year, partly offset by the decrease in adjusted EBITA, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements. (4) Each ADS represents eight ordinary shares. (5) The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding. MARCH QUARTER SEGMENT RESULTS Revenue for the quarter ended March 31, 2026 was RMB243,380 million (US$35,283 million), an increase of 3% year-over-year compared to RMB236,454 million in the same quarter of 2025. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 11% year-over-year. The following table sets forth a breakdown of our revenue by segment for the periods indicated:   Three months ended March 31,     2025 2026     RMB RMB US$ YoY %
Change   (in millions, except percentages) Alibaba China E-commerce Group:         E-commerce         - Customer management 72,180   73,024   10,586   1 % - Direct sales, logistics and others(2) 24,665   23,268   3,373   (6 )%   96,845   96,292   13,959   (1 )% Quick commerce(3) 12,715   19,988   2,898   57 % China commerce wholesale 5,788   5,940   861   3 % Total Alibaba China E-commerce Group 115,348   122,220   17,718   6 %           Alibaba International Digital Commerce Group:         International commerce retail 27,603   28,917   4,192   5 % International commerce wholesale 5,976   6,512   944   9 % Total Alibaba International Digital Commerce Group 33,579   35,429   5,136   6 %           Cloud Intelligence Group 30,127   41,626   6,035   38 % All others(4) 83,276   65,459   9,490   (21 )% Unallocated 446   641   93     Inter-segment elimination (26,322 ) (21,995 ) (3,189 )   Consolidated revenue 236,454   243,380   35,283   3 % ____________________ (1) To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. (2) Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services. (3) Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue. (4) All others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Amap. The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:   Three months ended March 31,       2025   2026       RMB   RMB   US$   YoY %
Change(3)   (in millions, except percentages) Alibaba China E-commerce Group 39,742   24,010   3,481   (40 )% Alibaba International Digital Commerce Group (3,574 ) (138 ) (20 ) 96 % Cloud Intelligence Group 2,420   3,796   550   57 % All others (3,413 ) (21,160 ) (3,067 ) (520 )% Unallocated(2) (2,030 ) (788 ) (114 )   Inter-segment elimination (529 ) (618 ) (90 )   Consolidated adjusted EBITA 32,616   5,102   740   (84 )% Less: Non-cash share-based compensation expense (2,781 ) (2,708 ) (393 )   Less: Amortization and impairment of intangible assets, and others (1,370 ) (3,242 ) (470 )   Income (Loss) from operations 28,465   (848 ) (123 ) N/A   ____________________ (1) To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. (2) Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments. (3) For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate. Alibaba China E-commerce Group (i) Segment revenue E-commerce Business Revenue from our E-commerce business in the quarter ended March 31, 2026 was RMB96,292 million (US$13,959 million), a decrease of 1% compared to RMB96,845 million in the same quarter of 2025. Customer management revenue increased by 1% year-over-year. Excluding the contra revenue impact from the new business development program, customer management revenue on a like-for-like basis would have grown by 8% year-over-year. Direct sales, logistics and others revenue under E-commerce business in the quarter ended March 31, 2026 was RMB23,268 million (US$3,373 million), a decrease of 6% compared to RMB24,665 million in the same quarter of 2025, primarily due to the decrease in revenue from certain direct sales businesses. Quick Commerce Business Revenue from our Quick commerce business in the quarter ended March 31, 2026 was RMB19,988 million (US$2,898 million), an increase of 57% compared to RMB12,715 million in the same quarter of 2025, mainly due to order growth as a result of the rollout of “Taobao Instant Commerce” at the end of April 2025. China Commerce Wholesale Business Revenue from our China commerce wholesale business in the quarter ended March 31, 2026 was RMB5,940 million (US$861 million), an increase of 3% compared to RMB5,788 million in the same quarter of 2025, primarily due to an increase in revenue from value-added services provided to paying members. (ii) Segment adjusted EBITA Alibaba China E-commerce Group adjusted EBITA decreased by 40% to RMB24,010 million (US$3,481 million) in the quarter ended March 31, 2026, compared to RMB39,742 million in the same quarter of 2025, primarily due to the investment in quick commerce, user experiences, and technology, while there is positive contribution from customer management service. Alibaba International Digital Commerce Group (i) Segment revenue International Commerce Retail Business Revenue from our International commerce retail business in the quarter ended March 31, 2026 was RMB28,917 million (US$4,192 million), an increase of 5% compared to RMB27,603 million in the same quarter of 2025, comprising the revenue increase contributed by AliExpress and other international businesses, and partly offset by the revenue decrease of Lazada. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations. International Commerce Wholesale Business Revenue from our International commerce wholesale business in the quarter ended March 31, 2026 was RMB6,512 million (US$944 million), an increase of 9% compared to RMB5,976 million in the same quarter of 2025, primarily due to an increase in revenue generated by cross-border related value-added services. (ii) Segment adjusted EBITA Alibaba International Digital Commerce Group adjusted EBITA was a loss of RMB138 million (US$20 million) in the quarter ended March 31, 2026, compared to a loss of RMB3,574 million in the same quarter of 2025, primarily due to significant improvement in AliExpress’ operating efficiency, and enhanced efficiencies across various businesses. Cloud Intelligence Group (i) Segment revenue Revenue from Cloud Intelligence Group was RMB41,626 million (US$6,035 million) in the quarter ended March 31, 2026, an increase of 38% compared to RMB30,127 million in the same quarter of 2025. Overall revenue from external customers increased by 40% year-over-year, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products. (ii) Segment adjusted EBITA Cloud Intelligence Group adjusted EBITA increased by 57% to RMB3,796 million (US$550 million) in the quarter ended March 31, 2026, compared to RMB2,420 million in the same quarter of 2025, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation. All Others (i) Segment revenue Revenue from All others segment was RMB65,459 million (US$9,490 million) in the quarter ended March 31, 2026, a decrease of 21% compared to RMB83,276 million in the same quarter of 2025, primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Amap. (ii) Segment adjusted EBITA Adjusted EBITA from All others segment in the quarter ended March 31, 2026 was a loss of RMB21,160 million (US$3,067 million), compared to a loss of RMB3,413 million in the same quarter of 2025, primarily due to the increased investment in technology businesses (including investment in user acquisition of Qwen app), partly offset by the improved operating results of other businesses. MARCH QUARTER OTHER FINANCIAL RESULTS Costs and Expenses The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:   Three months ended March 31, % of
Revenue
YoY
change   2025 2026   RMB % of
Revenue RMB US$ % of
Revenue   (in millions, except percentages) Costs and expenses:             Cost of revenue 145,626   61.6 % 159,392   23,107   65.5 % 3.9 % Product development expenses 14,934   6.3 % 18,957   2,748   7.8 % 1.5 % Sales and marketing expenses 36,179   15.3 % 53,415   7,744   21.9 % 6.6 % General and administrative expenses 10,331   4.4 % 9,949   1,442   4.1 % (0.3 )% Amortization and impairment of intangible assets 833   0.4 % 2,605   378   1.1 % 0.7 % Total costs and expenses 207,903     244,318   35,419                     Share-based compensation expense:             Cost of revenue 417   0.2 % 487   70   0.2 % 0.0 % Product development expenses 1,538   0.7 % 1,247   181   0.5 % (0.2 )% Sales and marketing expenses 654   0.3 % 352   51   0.1 % (0.2 )% General and administrative expenses 826   0.3 % 1,006   146   0.4 % 0.1 % Total share-based compensation expense(1) 3,435     3,092   448                     Costs and expenses excluding share-based compensation expense:             Cost of revenue 145,209   61.4 % 158,905   23,037   65.3 % 3.9 % Product development expenses 13,396   5.7 % 17,710   2,567   7.3 % 1.6 % Sales and marketing expenses 35,525   15.0 % 53,063   7,693   21.8 % 6.8 % General and administrative expenses 9,505   4.0 % 8,943   1,296   3.7 % (0.3 )% Amortization and impairment of intangible assets 833   0.4 % 2,605   378   1.1 % 0.7 % Total costs and expenses excluding share-based compensation expense 204,468     241,226   34,971       ____________________ (1) This includes both cash and non-cash share-based compensation expenses. Cost of revenue – Cost of revenue in the quarter ended March 31, 2026 was RMB159,392 million (US$23,107 million), or 65.5% of revenue, compared to RMB145,626 million, or 61.6% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 61.4% in the quarter ended March 31, 2025 to 65.3% in the quarter ended March 31, 2026, primarily driven by the growth in our cloud and technology businesses, and our expansion in quick commerce businesses, partly offset by the disposal of Sun Art and Intime. Product development expenses – Product development expenses in the quarter ended March 31, 2026 were RMB18,957 million (US$2,748 million), or 7.8% of revenue, compared to RMB14,934 million, or 6.3% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.7% in the quarter ended March 31, 2025 to 7.3% in the quarter ended March 31, 2026, primarily due to investments in our research and development personnel and other technology infrastructure costs. Sales and marketing expenses – Sales and marketing expenses in the quarter ended March 31, 2026 were RMB53,415 million (US$7,744 million), or 21.9% of revenue, compared to RMB36,179 million, or 15.3% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 15.0% in the quarter ended March 31, 2025 to 21.8% in the quarter ended March 31, 2026, primarily attributable to the investment in quick commerce business and user acquisition of Qwen app. General and administrative expenses – General and administrative expenses in the quarter ended March 31, 2026 were RMB9,949 million (US$1,442 million), or 4.1% of revenue, compared to RMB10,331 million, or 4.4% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 4.0% in the quarter ended March 31, 2025 to 3.7% in the quarter ended March 31, 2026. Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended March 31, 2026 was RMB3,092 million (US$448 million), compared to RMB3,435 million in the same quarter of 2025. The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:   Three months ended March 31,       2025   2026       RMB   RMB   US$   YoY %
Change   (in millions, except percentages) By type of awards:         Alibaba Group share-based awards(1) 2,712   2,297 333   (15 )% Others(2) 723   795   115   10 % Total share-based compensation expense(3) 3,435   3,092   448   (10 )% ____________________ (1) This represents Alibaba Group share-based awards granted to our employees. (2) This represents share-based awards of our subsidiaries and Ant Group granted to our employees. (3) This includes both cash and non-cash share-based compensation expenses. Share-based compensation expense decreased in the quarter ended March 31, 2026 compared to the same quarter of 2025. The decrease was primarily due to the decrease in the number of awards granted as we have increased the proportion of long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market. We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future. Amortization and impairment of intangible assets – Amortization and impairment of intangible assets in the quarter ended March 31, 2026 was RMB2,605 million (US$378 million), an increase of 213% from RMB833 million in the same quarter of 2025, primarily due to the impairment of intangible assets relating to our business within Alibaba China E-commerce Group. Income (Loss) from operations and operating margin Loss from operations in the quarter ended March 31, 2026 was RMB848 million (US$123 million), compared to an income from operations of RMB28,465 million, or 12% of revenue, in the same quarter of 2025, primarily due to the decrease in adjusted EBITA. Adjusted EBITDA and Adjusted EBITA Adjusted EBITDA decreased 61% year-over-year to RMB16,435 million (US$2,383 million) in the quarter ended March 31, 2026, compared to RMB41,783 million in the same quarter of 2025. Adjusted EBITA decreased 84% year-over-year to RMB5,102 million (US$740 million) in the quarter ended March 31, 2026, compared to RMB32,616 million in the same quarter of 2025, primarily attributable to the investment in technology businesses, quick commerce and user experiences, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement. Adjusted EBITA by segment Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “March Quarter Segment Results” above. Interest and investment income, net Interest and investment income, net in the quarter ended March 31, 2026 was a gain of RMB33,823 million (US$4,903 million), compared to a loss of RMB7,516 million in the same quarter of 2025, primarily due to the year-over-year increase in net gain from mark-to-market changes of our equity investments, and disposal losses of Sun Art and Intime in the same quarter last year. The above-mentioned investment gains and losses were excluded from our non-GAAP net income. Other income, net Other income, net in the quarter ended March 31, 2026 was RMB623 million (US$91 million), an increase of 3015% compared to RMB20 million in the same quarter of 2025. Income tax expenses Income tax expenses in the quarter ended March 31, 2026 were RMB7,170 million (US$1,040 million), compared to RMB6,854 million in the same quarter of 2025. Share of results of equity method investees Share of results of equity method investees in the quarter ended March 31, 2026 was a loss of RMB685 million (US$99 million), compared to a profit of RMB354 million in the same quarter of 2025. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:   Three months ended March 31,   2025   2026   RMB   RMB   US$   (in millions) Share of profit (loss) of equity method investees       - Ant Group 1,763   375   55   - Others (981 ) (198 ) (29 ) Impairment loss (43 ) (9 ) (1 ) Others(1) (385 ) (853 ) (124 ) Total 354   (685 ) (99 ) ____________________ (1) “Others” mainly include basis differences arising from equity method investees, share-based compensation expense related to share-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed disposal of the equity method investees. We record our share of results of all equity method investees one quarter in arrears. The year-over-year decrease in share of profit of Ant Group reflected its increased investments in new growth initiatives, including user growth, and technologies. Net income and Non-GAAP net income Our net income in the quarter ended March 31, 2026 was RMB23,502 million (US$3,407 million), compared to RMB11,973 million in the same quarter of 2025, primarily attributable to the year-over-year increase in net gain from mark-to-market changes of our equity investments, and the disposal losses of Sun Art and Intime in the same quarter last year, partly offset by the decrease in adjusted EBITA. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the quarter ended March 31, 2026 was RMB86 million (US$12 million), a decrease of 100% compared to RMB29,847 million in the same quarter of 2025, primarily attributable to the investment in technology businesses, quick commerce and user experiences, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to non-GAAP net income is included at the end of this results announcement. Net income attributable to ordinary shareholders Net income attributable to ordinary shareholders in the quarter ended March 31, 2026 was RMB25,476 million (US$3,693 million), compared to RMB12,382 million in the same quarter of 2025, primarily attributable to the year-over-year increase in net gain from mark-to-market changes of our equity investments, and the disposal losses of Sun Art and Intime in the same quarter last year, partly offset by the decrease in adjusted EBITA. Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share Diluted earnings per ADS in the quarter ended March 31, 2026 was RMB10.36 (US$1.50), compared to RMB5.17 in the same quarter of 2025. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in the quarter ended March 31, 2026 was RMB0.62 (US$0.09), a decrease of 95% compared to RMB12.52 in the same quarter of 2025. Diluted earnings per share in the quarter ended March 31, 2026 was RMB1.30 (US$0.19 or HK$1.47), compared to RMB0.65 in the same quarter of 2025. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in the quarter ended March 31, 2026 was RMB0.08 (US$0.01 or HK$0.09), a decrease of 95% compared to RMB1.57 in the same quarter of 2025. A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares. Net cash provided by operating activities and free cash flow During the quarter ended March 31, 2026, net cash provided by operating activities was RMB9,410 million (US$1,364 million), a decrease of 66% compared to RMB27,520 million in the same quarter of 2025. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB17,300 million (US$2,508 million), compared to an inflow of RMB3,743 million in the same quarter of 2025. The decrease in free cash flow was mainly attributed to the investment in quick commerce, user acquisition of Qwen app and increase in our cloud infrastructure expenditure. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement. Net cash provided by investing activities During the quarter ended March 31, 2026, net cash provided by investing activities of RMB9,704 million (US$1,407 million) primarily reflected net decrease in short-term investments and other treasury investments by RMB30,750 million (US$4,458 million), net cash inflow of RMB6,294 million (US$912 million) from investment and acquisition activities, partly offset by capital expenditures of RMB26,887 million (US$3,898 million). Net cash used in financing activities During the quarter ended March 31, 2026, net cash used in financing activities of RMB15,002 million (US$2,175 million) primarily reflected cash used in acquisition of additional equity interests in non-wholly owned subsidiaries of RMB14,691 million (US$2,130 million). Employees As of March 31, 2026, we had a total of 131,462 employees, compared to 128,197 as of December 31, 2025. FULL FISCAL YEAR SUMMARY FINANCIAL RESULTS   Year ended March 31,     2025 2026     RMB RMB US$ YoY %
Change   (in millions, except percentages and per share amounts)           Revenue 996,347   1,023,670   148,401   3%                 Income from operations 140,905   50,150   7,270   (64)%(2) Operating margin 14%   5%         Adjusted EBITDA(1) 202,325   113,483   16,452   (44)%(2) Adjusted EBITDA margin(1) 20%   11%         Adjusted EBITA(1) 173,065   76,416   11,078   (56)%(2) Adjusted EBITA margin(1) 17%   7%                         Net income 125,976   102,127   14,805   (19)%(3) Net income attributable to ordinary shareholders 129,470   105,904   15,353   (18)%(3) Non-GAAP net income(1) 158,122   60,658   8,794   (62)%(2)                 Diluted earnings per share(4) 6.70   5.50   0.80   (18)%(3)(5) Diluted earnings per ADS(4) 53.59   44.00   6.38   (18)%(3)(5) Non-GAAP diluted earnings per share(1)(4) 8.18   3.35   0.49   (59)%(2)(5) Non-GAAP diluted earnings per ADS(1)(4) 65.41   26.80   3.89   (59)%(2)(5) ____________________ (1) See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement. (2) The year-over-year decreases were primarily attributable to the investment in quick commerce, user experiences, and technology businesses, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. (3) The year-over-year decreases were primarily attributable to the decrease in income from operations, partly offset by the year-over-year increase in net gain from mark-to-market changes of our equity investments, as well as net gains from disposal of investments, including local consumer service business of Trendyol in fiscal year 2026, compared to losses on disposal of Sun Art and Intime in fiscal year 2025, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements. (4) Each ADS represents eight ordinary shares. (5) The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding. FULL FISCAL YEAR SEGMENT RESULTS Revenue for fiscal year 2026 was RMB1,023,670 million (US$148,401 million), an increase of 3% year-over-year compared to RMB996,347 million in fiscal year 2025. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 11% year-over-year. The following table sets forth a breakdown of our revenue by segment for the periods indicated:   Year ended March 31,       2025   2026       RMB   RMB   US$   YoY %
Change   (in millions, except percentages) Alibaba China E-commerce Group:         E-commerce         - Customer management 326,769   343,867   49,850   5 % - Direct sales, logistics and others(2) 103,722   105,518   15,297   2 %   430,491   449,385   65,147   4 % Quick commerce(3) 53,588   78,520   11,383   47 % China commerce wholesale 24,301   26,312   3,815   8 % Total Alibaba China E-commerce Group 508,380   554,217   80,345   9 %           Alibaba International Digital Commerce Group:         International commerce retail 108,465   117,731   17,067   9 % International commerce wholesale 23,835   26,439   3,833   11 % Total Alibaba International Digital Commerce Group 132,300   144,170   20,900   9 %           Cloud Intelligence Group 118,028   158,132   22,924   34 % All others(4) 338,347   254,367   36,876   (25 )% Unallocated 1,924   2,340   339     Inter-segment elimination (102,632 ) (89,556 ) (12,983 )   Consolidated revenue 996,347   1,023,670   148,401   3 % ____________________ (1) To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. (2) Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services. (3) Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue. (4) All others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap. The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:   Year ended March 31,     2025 2026     RMB RMB US$ YoY %
Change(3)   (in millions, except percentages) Alibaba China E-commerce Group 193,223   107,509   15,586   (44 )% Alibaba International Digital Commerce Group (15,137 ) (2,051 ) (297 ) 86 % Cloud Intelligence Group 10,556   14,265   2,068   35 % All others (9,499 ) (35,737 ) (5,181 ) (276 )% Unallocated(2) (4,337 ) (5,150 ) (747 )   Inter-segment elimination (1,741 ) (2,420 ) (351 )   Consolidated adjusted EBITA 173,065   76,416   11,078   (56 )% Less: Non-cash share-based compensation expense (13,970 ) (11,180 ) (1,621 )   Less: Amortization and impairment of intangible assets (6,336 ) (5,079 ) (736 )   Less: Impairment of goodwill, and others (11,854 ) (10,007 ) (1,451 )   Income from operations 140,905   50,150   7,270   (64 )% ____________________ (1) To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. (2) Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments. (3) For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate. Alibaba China E-commerce Group (i) Segment revenue E-commerce Business Revenue from our E-commerce business in fiscal year 2026 was RMB449,385 million (US$65,147 million), an increase of 4% compared to RMB430,491 million in fiscal year 2025. Customer management revenue increased by 5% year-over-year, primarily driven by the improvement of take rate year-over-year. Excluding the contra revenue impact from the new business development program, customer management revenue on a like-for-like basis would have grown by 7% year-over-year. Direct sales, logistics and others revenue under E-commerce business in fiscal year 2026 was RMB105,518 million (US$15,297 million), an increase of 2% compared to RMB103,722 million in fiscal year 2025, primarily driven by the increase in revenue from logistics services and value-added services, partly offset by the decrease in revenue from certain direct sales businesses. Quick Commerce Business Revenue from our Quick commerce business in fiscal year 2026 was RMB78,520 million (US$11,383 million), an increase of 47% compared to RMB53,588 million in fiscal year 2025, mainly due to order growth as a result of the rollout of “Taobao Instant Commerce” at the end of April 2025. China Commerce Wholesale Business Revenue from our China commerce wholesale business in fiscal year 2026 was RMB26,312 million (US$3,815 million), an increase of 8% compared to RMB24,301 million in fiscal year 2025, primarily due to an increase in revenue from value-added services provided to paying members. (ii) Segment adjusted EBITA Alibaba China E-commerce Group adjusted EBITA decreased by 44% to RMB107,509 million (US$15,586 million) in fiscal year 2026, compared to RMB193,223 million in fiscal year 2025, primarily due to the investment in quick commerce, user experiences, and technology, while there is positive contribution from customer management service. Alibaba International Digital Commerce Group (i) Segment revenue International Commerce Retail Business Revenue from our International commerce retail business in fiscal year 2026 was RMB117,731 million (US$17,067 million), an increase of 9% compared to RMB108,465 million in fiscal year 2025, primarily driven by the increase in revenue contributed by AliExpress and other international businesses, and partly offset by the revenue decrease of Lazada. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations. International Commerce Wholesale Business Revenue from our International commerce wholesale business in fiscal year 2026 was RMB26,439 million (US$3,833 million), an increase of 11% compared to RMB23,835 million in fiscal year 2025, primarily due to an increase in revenue generated by cross-border related value-added services. (ii) Segment adjusted EBITA Alibaba International Digital Commerce Group adjusted EBITA was a loss of RMB2,051 million (US$297 million) in fiscal year 2026, compared to a loss of RMB15,137 million in fiscal year 2025, primarily due to significant improvement in AliExpress’ operating efficiency, and enhanced efficiencies across various businesses. Cloud Intelligence Group (i) Segment revenue Revenue from Cloud Intelligence Group was RMB158,132 million (US$22,924 million) in fiscal year 2026, an increase of 34% compared to RMB118,028 million in fiscal year 2025. Overall revenue from external customers increased by 33% year-over-year, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products. (ii) Segment adjusted EBITA Cloud Intelligence Group adjusted EBITA increased by 35% to RMB14,265 million (US$2,068 million) in fiscal year 2026, compared to RMB10,556 million in fiscal year 2025, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation. All Others (i) Segment revenue Revenue from All others segment was RMB254,367 million (US$36,876 million) in fiscal year 2026, a decrease of 25% compared to RMB338,347 million in fiscal year 2025, primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap. (ii) Segment adjusted EBITA Adjusted EBITA from All others segment in fiscal year 2026 was a loss of RMB35,737 million (US$5,181 million), compared to a loss of RMB9,499 million in fiscal year 2025, primarily due to the increased investment in technology businesses, partly offset by the improved results of Hujing Digital Media and Entertainment Group and other businesses. FULL FISCAL YEAR OTHER FINANCIAL RESULTS Costs and Expenses The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:   Year ended March 31, % of
Revenue
YoY
change   2025 2026   RMB % of
Revenue RMB US$ % of
Revenue   (in millions, except percentages) Costs and expenses:             Cost of revenue 598,285   60.0 % 616,136   89,321   60.2 % 0.2 % Product development expenses 57,151   5.7 % 66,533   9,645   6.5 % 0.8 % Sales and marketing expenses 144,021   14.5 % 245,023   35,521   23.9 % 9.4 % General and administrative expenses 44,239   4.4 % 33,082   4,796   3.2 % (1.2 )% Amortization and impairment of intangible assets 6,336   0.6 % 5,079   736   0.5 % (0.1 )% Impairment of goodwill 6,171   0.6 % 9,515   1,380   0.9 % 0.3 % Total costs and expenses 856,203     975,368   141,399                     Share-based compensation expense:             Cost of revenue 2,162   0.2 % 2,023   293   0.2 % 0.0 % Product development expenses 6,700   0.7 % 6,016   872   0.6 % (0.1 )% Sales and marketing expenses 2,137   0.2 % 2,321   337   0.2 % 0.0 % General and administrative expenses 4,578   0.5 % 4,461   647   0.4 % (0.1 )% Total share-based compensation expense(1) 15,577     14,821   2,149                     Costs and expenses excluding share-based compensation expense:             Cost of revenue 596,123   59.8 % 614,113   89,028   60.0 % 0.2 % Product development expenses 50,451   5.1 % 60,517   8,773   5.9 % 0.8 % Sales and marketing expenses 141,884   14.2 % 242,702   35,184   23.7 % 9.5 % General and administrative expenses 39,661   4.0 % 28,621   4,149   2.8 % (1.2 )% Amortization and impairment of intangible assets 6,336   0.6 % 5,079   736   0.5 % (0.1 )% Impairment of goodwill 6,171   0.6 % 9,515   1,380   0.9 % 0.3 % Total costs and expenses excluding share-based compensation expense 840,626     960,547   139,250       ____________________ (1) This includes both cash and non-cash share-based compensation expenses. Cost of revenue – Cost of revenue in fiscal year 2026 was RMB616,136 million (US$89,321 million), or 60.2% of revenue, compared to RMB598,285 million, or 60.0% of revenue, in fiscal year 2025. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 59.8% in fiscal year 2025 to 60.0% in fiscal year 2026, primarily driven by our expansion in quick commerce business, and the growth in our cloud and technology businesses, partly offset by the disposal of Sun Art and Intime businesses, improvement in monetization and operating efficiency. Product development expenses – Product development expenses in fiscal year 2026 were RMB66,533 million (US$9,645 million), or 6.5% of revenue, compared to RMB57,151 million, or 5.7% of revenue, in fiscal year 2025. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.1% in fiscal year 2025 to 5.9% in fiscal year 2026. Sales and marketing expenses – Sales and marketing expenses in fiscal year 2026 were RMB245,023 million (US$35,521 million), or 23.9% of revenue, compared to RMB144,021 million, or 14.5% of revenue, in fiscal year 2025. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 14.2% in fiscal year 2025 to 23.7% in fiscal year 2026, primarily attributable to the investment in user experiences of Alibaba China E-commerce Group and user acquisition of Qwen app. General and administrative expenses – General and administrative expenses in fiscal year 2026 were RMB33,082 million (US$4,796 million), or 3.2% of revenue, compared to RMB44,239 million, or 4.4% of revenue, in fiscal year 2025. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 4.0% in fiscal year 2025 to 2.8% in fiscal year 2026, primarily due to a one-time provision for the shareholder class action lawsuits in fiscal year 2025 and our enhanced cost control measures. Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in fiscal year 2026 was RMB14,821 million (US$2,149 million), compared to RMB15,577 million in fiscal year 2025. The following table sets forth our analysis of share-based compensation expense for the periods indicated by type of share-based awards:   Year ended March 31,       2025   2026       RMB   RMB   US$   YoY %
Change   (in millions, except percentages) By type of awards:         Alibaba Group share-based awards(1) 11,121   9,146 1,326 (18 )% Others(2) 4,456   5,675   823   27 % Total share-based compensation expense(3) 15,577   14,821   2,149   (5 )% ____________________ (1) This represents Alibaba Group share-based awards granted to our employees. (2) This represents share-based awards of our subsidiaries and Ant Group granted to our employees. (3) This includes both cash and non-cash share-based compensation expenses. Share-based compensation expense decreased in fiscal year 2026 compared to fiscal year 2025. The decrease was primarily due to the decrease in the number of awards granted as we have increased the proportion of long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market. We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future. Amortization and impairment of intangible assets – Amortization and impairment of intangible assets in fiscal year 2026 was RMB5,079 million (US$736 million), a decrease of 20% from RMB6,336 million in fiscal year 2025, primarily due to the full amortization of certain intangible assets, partly offset by the increase in impairment. Impairment of goodwill – Impairment of goodwill in fiscal year 2026 was RMB9,515 million (US$1,380 million), an increase of 54% from RMB6,171 million in fiscal year 2025, both of which are related to All others segment. Income from operations and operating margin Income from operations in fiscal year 2026 was RMB50,150 million (US$7,270 million), or 5% of revenue, a decrease of 64% compared to RMB140,905 million, or 14% of revenue, in fiscal year 2025, primarily due to the decrease in adjusted EBITA and increase in impairment of goodwill, partly offset by the decrease in one-time provisions and non-cash share-based expenses. Adjusted EBITDA and Adjusted EBITA Adjusted EBITDA decreased 44% year-over-year to RMB113,483 million (US$16,452 million) in fiscal year 2026, compared to RMB202,325 million in fiscal year 2025. Adjusted EBITA decreased 56% year-over-year to RMB76,416 million (US$11,078 million) in fiscal year 2026, compared to RMB173,065 million in fiscal year 2025, primarily attributable to the investment in quick commerce, user experiences, and technology businesses, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement. Adjusted EBITA by segment Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “Full Fiscal Year Segment Results” above. Interest and investment income, net Interest and investment income, net in fiscal year 2026 was RMB87,512 million (US$12,687 million), an increase of 322% compared to RMB20,759 million in fiscal year 2025, primarily due to the year-over-year increase in net gain from mark-to-market changes of our equity investments, as well as net gains from disposal of investments, including local consumer service business of Trendyol in fiscal year 2026, compared to losses on disposal of Sun Art and Intime in fiscal year 2025. The above-mentioned investment gains and losses were excluded from our non-GAAP net income. Other income, net Other income, net in fiscal year 2026 was RMB1,518 million (US$220 million), a decrease of 55% compared to RMB3,387 million in fiscal year 2025, primarily due to the increase in net exchange loss, arising from the exchange rate fluctuation between Renminbi and U.S. dollar. Income tax expenses Income tax expenses in fiscal year 2026 were RMB30,045 million (US$4,356 million), compared to RMB35,445 million in fiscal year 2025. Share of results of equity method investees Share of results of equity method investees in fiscal year 2026 was RMB2,785 million (US$404 million), a decrease of 53% compared to RMB5,966 million in fiscal year 2025. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:   Year ended March 31,   2025   2026   RMB   RMB   US$   (in millions) Share of profit (loss) of equity method investees       - Ant Group 12,648   5,048   732   - Others (2,276 ) 1,624   235   Impairment loss (2,723 ) (15 ) (2 ) Others(1) (1,683 ) (3,872 ) (561 ) Total 5,966   2,785   404   ____________________ (1) “Others” mainly include basis differences arising from equity method investees, share-based compensation expense related to share-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed disposal of the equity method investees. We record our share of results of all equity method investees one quarter in arrears. The year-over-year decrease in share of profit of Ant Group was mainly attributable to the increase in investments in new growth initiatives, including user growth, and technologies. Net income and Non-GAAP net income Our net income in fiscal year 2026 was RMB102,127 million (US$14,805 million), compared to RMB125,976 million in fiscal year 2025, primarily attributable to the decrease in income from operations, partly offset by the year-over-year increase in net gain from mark-to-market changes of our equity investments, as well as net gains from disposal of investments, including local consumer service business of Trendyol in fiscal year 2026, compared to losses on disposal of Sun Art and Intime in fiscal year 2025. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in fiscal year 2026 was RMB60,658 million (US$8,794 million), a decrease of 62% compared to RMB158,122 million in fiscal year 2025, primarily attributable to the investment in quick commerce, user experiences, and technology businesses, partly offset by the improved operating results supported by continued growth in customer management service and Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to non-GAAP net income is included at the end of this results announcement. Net income attributable to ordinary shareholders Net income attributable to ordinary shareholders in fiscal year 2026 was RMB105,904 million (US$15,353 million), compared to RMB129,470 million in fiscal year 2025, primarily attributable to the decrease in income from operations, partly offset by the year-over-year increase in net gain from mark-to-market changes of our equity investments, as well as net gains from disposal of investments, including local consumer service business of Trendyol in fiscal year 2026, compared to losses on disposal of Sun Art and Intime in fiscal year 2025. Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share Diluted earnings per ADS in fiscal year 2026 was RMB44.00 (US$6.38), compared to RMB53.59 in fiscal year 2025. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in fiscal year 2026 was RMB26.80 (US$3.89), a decrease of 59% compared to RMB65.41 in fiscal year 2025. Diluted earnings per share in fiscal year 2026 was RMB5.50 (US$0.80 or HK$6.23), compared to RMB6.70 in fiscal year 2025. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in fiscal year 2026 was RMB3.35 (US$0.49 or HK$3.79), a decrease of 59% compared to RMB8.18 in fiscal year 2025. A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares. Cash and cash equivalents, short-term investments and other treasury investments As of March 31, 2026, cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use, were RMB520,824 million (US$75,504 million), compared to RMB597,132 million as of March 31, 2025. Other treasury investments consist of fixed deposits, certificates of deposit and marketable debt securities with original maturities over one year for treasury purposes. The decrease of RMB76,308 million during the year ended March 31, 2026, was primarily due to (i) free cash flow outflow of RMB46,609 million (US$6,757 million), (ii) dividend payment of RMB33,732 million (US$4,890 million), (iii) acquisition of additional equity interests in non-wholly owned subsidiaries of RMB16,768 million (US$2,431 million), (iv) effect of exchange rate changes of RMB13,375 million (US$1,939 million) mainly due to the depreciation of the U.S. dollar against Renminbi, partly offset by (v) the net proceeds from issuance of convertible unsecured senior notes and the payments for capped call transactions of RMB20,967 million (US$3,040 million) and (vi) the net proceeds from issuance of exchangeable bonds of RMB10,986 million (US$1,593 million). Net cash provided by operating activities and free cash flow Net cash provided by operating activities in fiscal year 2026 was RMB76,213 million (US$11,049 million), a decrease of 53% compared to RMB163,509 million in fiscal year 2025. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB46,609 million (US$6,757 million), compared to an inflow of RMB73,870 million in fiscal year 2025. The decrease in free cash flow was mainly attributed to the investment in quick commerce and increase in our cloud infrastructure expenditure. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement. Net cash used in investing activities During fiscal year 2026, net cash used in investing activities of RMB67,336 million (US$9,762 million) primarily reflected capital expenditures of RMB126,063 million (US$18,275 million), partly offset by a net decrease in short-term investments and other treasury investments by RMB29,548 million (US$4,284 million) and net cash inflow of RMB29,045 million (US$4,211 million) from investment and acquisition activities. Net cash used in financing activities During fiscal year 2026, net cash used in financing activities of RMB20,573 million (US$2,983 million) primarily reflected dividend payment of RMB33,732 million (US$4,890 million) and acquisition of additional equity interests in non-wholly owned subsidiaries of RMB16,768 million (US$2,431 million), partly offset by the net proceeds from issuance of convertible unsecured senior notes and the payments for capped call transactions of RMB20,967 million (US$3,040 million) and the net proceeds from issuance of exchangeable bonds of RMB10,986 million (US$1,593 million). Employees As of March 31, 2026, we had a total of 131,462 employees, compared to 124,320 as of March 31, 2025. WEBCAST AND CONFERENCE CALL INFORMATION Alibaba Group’s management will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong Time) on Wednesday, May 13, 2026. All participants must pre-register to join this conference call using the Participant Registration link below:
English: https://s1.c-conf.com/diamondpass/10054382-np98b5.html
Chinese: https://s1.c-conf.com/diamondpass/10054384-cn23b5.html Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference. A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en/ir/earnings. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10054382; Chinese conference PIN 10054384). Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en/ir/home on May 13, 2026 to view the earnings release and accompanying slides prior to the conference call. ABOUT ALIBABA GROUP Alibaba Group is a global technology company focused on e-commerce and cloud computing. We enable merchants, brands and retailers to market, sell and engage with consumers by providing digital and logistics infrastructure, efficiency tools and vast marketing reach. We empower enterprises with our leading cloud infrastructure, services and work collaboration capabilities to facilitate their digital transformation and grow their businesses. EXCHANGE RATE INFORMATION This results announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong dollars (“HK$”) for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB6.8980 to US$1.00, the exchange rate on March 31, 2026 as set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into HK$ were made at RMB0.88295 to HK$1.00, the middle rate on March 31, 2026 as published by the People’s Bank of China. The percentages stated in this announcement are calculated based on the RMB amounts and there may be minor differences due to rounding. SAFE HARBOR STATEMENTS This results announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,” “intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to” and similar statements. In addition, statements that are not historical facts, including statements about Alibaba’s strategies and business and operational plans, Alibaba’s beliefs, expectations and guidance regarding the growth of its business, its operating and financial results, return on investments, strategic investments and dispositions and share repurchases, and the business outlook and quotations from management in this results announcement, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: Alibaba’s ability to compete, innovate and maintain or grow its business; risks associated with sustained investments in Alibaba’s businesses; risks related to strategic transactions; fluctuations in general economic and business conditions in China and globally; uncertainties arising from competition among countries and geopolitical tensions, including national trade, investment, protectionist or other policies and export control, economic or trade sanctions; changes to our shareholder return initiatives; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Alibaba’s filings with the U.S. Securities and Exchange Commission and announcements on the website of The Stock Exchange of Hong Kong Limited. All information provided in this results announcement is as of the date of this results announcement and are based on assumptions that we believe to be reasonable as of this date, and Alibaba does not undertake any obligation to update any forward-looking statement, except as required under applicable law. NON-GAAP FINANCIAL MEASURES To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. Adjusted EBITDA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented. Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented. Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects. Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares, in each case for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants. The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures.   ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED INCOME STATEMENTS     Three months ended March 31, Year ended March 31,   2025 2026 2025 2026   RMB RMB US$ RMB RMB US$   (in millions, except per share data) (in millions, except per share data) Revenue 236,454   243,380   35,283   996,347   1,023,670   148,401   Cost of revenue (145,626 ) (159,392 ) (23,107 ) (598,285 ) (616,136 ) (89,321 ) Product development expenses (14,934 ) (18,957 ) (2,748 ) (57,151 ) (66,533 ) (9,645 ) Sales and marketing expenses (36,179 ) (53,415 ) (7,744 ) (144,021 ) (245,023 ) (35,521 ) General and administrative expenses (10,331 ) (9,949 ) (1,442 ) (44,239 ) (33,082 ) (4,796 ) Amortization and impairment of intangible assets (833 ) (2,605 ) (378 ) (6,336 ) (5,079 ) (736 ) Impairment of goodwill –   –   –   (6,171 ) (9,515 ) (1,380 ) Other (losses) gains, net (86 ) 90   13   761   1,848   268                 Income (Loss) from operations 28,465   (848 ) (123 ) 140,905   50,150   7,270   Interest and investment income, net (7,516 ) 33,823   4,903   20,759   87,512   12,687   Interest expense (2,496 ) (2,241 ) (325 ) (9,596 ) (9,793 ) (1,420 ) Other income, net 20   623   91   3,387   1,518   220                 Income before income tax and share of results of equity method investees 18,473   31,357   4,546   155,455   129,387   18,757   Income tax expenses (6,854 ) (7,170 ) (1,040 ) (35,445 ) (30,045 ) (4,356 ) Share of results of equity method investees 354   (685 ) (99 ) 5,966   2,785   404                 Net income 11,973   23,502   3,407   125,976   102,127   14,805   Net loss attributable to noncontrolling interests 586   2,039   296   4,133   1,465   213                 Net income attributable to Alibaba Group Holding Limited 12,559   25,541   3,703   130,109   103,592   15,018                 (Accretion) Reversal of accretion of mezzanine equity (177 ) (65 ) (10 ) (639 ) 2,312   335                 Net income attributable to ordinary shareholders 12,382   25,476   3,693   129,470   105,904   15,353                 Earnings per share attributable to ordinary shareholders(1)             Basic 0.67   1.37   0.20   6.89   5.70   0.83   Diluted 0.65   1.30   0.19   6.70   5.50   0.80                 Earnings per ADS attributable to ordinary shareholders(1)             Basic 5.36   10.97   1.59   55.12   45.63   6.61   Diluted 5.17   10.36   1.50   53.59   44.00   6.38                 Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1)             Basic 18,487   18,579     18,791   18,568     Diluted 19,153   19,319     19,318   19,235     ____________________ (1) Each ADS represents eight ordinary shares. ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS     As of March 31,   As of March 31,   2025   2026   RMB   RMB   US$   (in millions) Assets       Current assets:       Cash and cash equivalents 145,487   131,530   19,068   Short-term investments 228,826   155,310   22,515   Restricted cash and escrow receivables 43,781   42,038   6,094   Equity securities and other investments 53,780   30,054   4,357   Prepayments, receivables and other assets 202,175   251,837   36,509   Total current assets 674,049   610,769   88,543           Equity securities and other investments 356,818   449,942   65,228   Prepayments, receivables and other assets 83,431   94,996   13,772   Investment in equity method investees 210,169   206,803   29,980   Property and equipment, net 203,348   282,699   40,983   Intangible assets, net 20,911   16,983   2,462   Goodwill 255,501   247,378   35,862   Total assets 1,804,227   1,909,570   276,830           Liabilities, Mezzanine Equity and Shareholders’ Equity       Current liabilities:       Current bank borrowings 22,562   28,224   4,092   Income tax payable 11,638   10,630   1,541   Accrued expenses, accounts payable and other liabilities 332,537   359,893   52,173   Merchant deposits 274   236   34   Deferred revenue and customer advances 68,335   77,415   11,223   Total current liabilities 435,346   476,398   69,063     ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)     As of March 31,   As of March 31,   2025   2026   RMB   RMB   US$   (in millions) Deferred revenue 4,536   4,885   708   Deferred tax liabilities 48,454   46,060   6,678   Non-current bank borrowings 49,909   47,450   6,879   Non-current unsecured senior notes 122,398   117,485   17,032   Non-current convertible unsecured senior notes 35,834   55,861   8,098   Non-current exchangeable bonds –   10,976   1,591   Other liabilities 17,644   24,185   3,506   Total liabilities 714,121   783,300   113,555           Commitments and contingencies               Mezzanine equity 11,713   7,845   1,137           Shareholders’ equity:       Ordinary shares 1   1   –   Additional paid-in capital 381,379   385,086   55,826   Treasury shares at cost (36,329 ) (36,141 ) (5,239 ) Statutory reserves 15,936   16,628   2,410   Accumulated other comprehensive income (loss) 3,393   (13,070 ) (1,895 ) Retained earnings 645,478   708,382   102,694           Total shareholders’ equity 1,009,858   1,060,886   153,796   Noncontrolling interests 68,535   57,539   8,342           Total equity 1,078,393   1,118,425   162,138           Total liabilities, mezzanine equity and equity 1,804,227   1,909,570   276,830     ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     Three months ended March 31, Year ended March 31,   2025 2026 2025 2026   RMB RMB US$ RMB RMB US$   (in millions) (in millions) Net cash provided by operating activities 27,520   9,410   1,364   163,509   76,213   11,049   Net cash (used in) provided by investing activities (39,547 ) 9,704   1,407   (185,415 ) (67,336 ) (9,762 ) Net cash used in financing activities (4,102 ) (15,002 ) (2,175 ) (76,215 ) (20,573 ) (2,983 ) Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables (569 ) (1,063 ) (154 ) 965   (4,004 ) (580 )               (Decrease) Increase in cash and cash equivalents, restricted cash and escrow receivables (16,698 ) 3,049   442   (97,156 ) (15,700 ) (2,276 ) Cash and cash equivalents, restricted cash and escrow receivables at beginning of period 205,966   170,519   24,720   286,424   189,268   27,438                 Cash and cash equivalents, restricted cash and escrow receivables at end of period 189,268   173,568   25,162   189,268   173,568   25,162     ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES   The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:     Three months ended March 31,   Year ended March 31,   2025   2026   2025   2026   RMB   RMB   US$   RMB   RMB   US$   (in millions)   (in millions) Net income 11,973   23,502   3,407   125,976   102,127   14,805   Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA:             Interest and investment income, net 7,516   (33,823 ) (4,903 ) (20,759 ) (87,512 ) (12,687 ) Interest expense 2,496   2,241   325   9,596   9,793   1,420   Other income, net (20 ) (623 ) (91 ) (3,387 ) (1,518 ) (220 ) Income tax expenses 6,854   7,170   1,040   35,445   30,045   4,356   Share of results of equity method investees (354 ) 685   99   (5,966 ) (2,785 ) (404 ) Income (Loss) from operations 28,465   (848 ) (123 ) 140,905   50,150   7,270   Non-cash share-based compensation expense 2,781   2,708   393   13,970   11,180   1,621   Amortization and impairment of intangible assets 833   2,605   378   6,336   5,079   736   Impairment of goodwill, and others 537   637   92   11,854   10,007   1,451   Adjusted EBITA 32,616   5,102   740   173,065   76,416   11,078   Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights 9,167   11,333   1,643   29,260   37,067   5,374   Adjusted EBITDA 41,783   16,435   2,383   202,325   113,483   16,452     ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)   The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated:     Three months ended March 31, Year ended March 31,   2025 2026 2025 2026   RMB RMB US$ RMB RMB US$   (in millions) (in millions) Net income 11,973   23,502   3,407   125,976   102,127   14,805   Adjustments to reconcile net income to non-GAAP net income:             Non-cash share-based compensation expense 2,781   2,708   393   13,970   11,180   1,621   Amortization and impairment of intangible assets 833   2,605   378   6,336   5,079   736   Loss (Gain) on deemed disposals/disposals/revaluation of investments 12,306   (30,827 ) (4,469 ) (8,764 ) (74,416 ) (10,788 ) Impairment of goodwill and investments, and others 897   2,161   313   22,435   17,746   2,573   Tax effects(1) 1,057   (63 ) (10 ) (1,831 ) (1,058 ) (153 )               Non-GAAP net income 29,847   86   12   158,122   60,658   8,794   ____________________ (1) Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others. ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)   The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:     Three months ended March 31,   Year ended March 31,   2025   2026   2025   2026   RMB   RMB   US$   RMB   RMB   US$   (in millions, except per share data)   (in millions, except per share data) Net income attributable to ordinary shareholders – basic 12,382   25,476   3,693   129,470   105,904   15,353   Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries (82 ) (86 ) (12 ) (300 ) (410 ) (59 ) Adjustments for interest expense attributable to convertible unsecured senior notes 70   82   12   235   309   45   Dilution effect on earnings arising from assumed exchange of exchangeable bonds –   (453 ) (66 ) –   –   –   Net income attributable to ordinary shareholders – diluted 12,370   25,019   3,627   129,405   105,803   15,339   Non-GAAP adjustments to net income attributable to ordinary shareholders(1) 17,610   (23,513 ) (3,409 ) 28,535   (41,365 ) (5,997 )               Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS 29,980   1,506   218   157,940   64,438   9,342                 Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2) 19,153   19,319     19,318   19,235                   Diluted earnings per share(2)(3) 0.65   1.30   0.19   6.70   5.50   0.80                 Non-GAAP diluted earnings per share(2)(4) 1.57   0.08   0.01   8.18   3.35   0.49                 Diluted earnings per ADS(2)(3) 5.17   10.36   1.50   53.59   44.00   6.38                 Non-GAAP diluted earnings per ADS(2)(4) 12.52   0.62   0.09   65.41   26.80   3.89   ____________________ (1) Non-GAAP adjustments exclude the attributions to the noncontrolling interests for computing non-GAAP diluted earnings per share/ADS. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before taking into account the dilutive impact and excluding the attributions to the noncontrolling interests). (2) Each ADS represents eight ordinary shares. (3) Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. (4) Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, in each case for computing non-GAAP diluted earnings per share. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)   The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated:     Three months ended March 31, Year ended March 31,   2025 2026 2025 2026   RMB RMB US$ RMB RMB US$   (in millions) (in millions) Net cash provided by operating activities 27,520   9,410   1,364   163,509   76,213   11,049   Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) (23,993 ) (26,588 ) (3,854 ) (84,278 ) (122,021 ) (17,689 ) Less: Purchase of intangible assets (excluding those acquired through acquisitions) –   (874 ) (127 ) –   (874 ) (127 ) Less: Changes in the buyer protection fund deposits 216   752   109   (5,361 ) 73   10                 Free cash flow 3,743   (17,300 ) (2,508 ) 73,870   (46,609 ) (6,757 )   View source version on businesswire.com: https://www.businesswire.com/news/home/20260512841182/en/ Investor Relations Contact
Lydia Liu
Head of Investor Relations
Alibaba Group Holding Limited
investor@alibaba-inc.com Media Contacts
Cathy Yan
cathy.yan@alibaba-inc.com Ivy Ke
ivy.ke@alibaba-inc.com Original: Alibaba Group Announces March Quarter 2026 and Fiscal Year 2026 Results

BABA, rebounding

Alibaba Group Will Announce March Quarter 2026 and Full Fiscal Year 2026 Results on May 13, 2026April 29, 2026 5:18 AM
Business Wire
Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced that it will report its unaudited financial results for the quarter and fiscal year ended March 31, 2026 before the U.S. market opens on Wednesday, May 13, 2026, and will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong Time) the same day.


All participants must pre-register to join this conference call using the Participant Registration link below:

English: https://s1.c-conf.com/diamondpass/10054382-np98b5.html

Chinese: https://s1.c-conf.com/diamondpass/10054384-cn23b5.html


Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference.


A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en/ir/earnings. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10054382; Chinese conference PIN 10054384).


Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en/ir/home on May 13, 2026 to view the earnings release and accompanying slides prior to the conference call.


About Alibaba Group


Alibaba Group is a global technology company focused on eCommerce and Cloud Computing. We enable merchants, brands and retailers to market, sell and engage with consumers by providing digital and logistics infrastructure, efficiency tools and vast marketing reach. We empower enterprises with our leading cloud infrastructure, services and work collaboration capabilities to facilitate their digital transformation and grow their businesses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429224196/en/
Investor Contact


Lydia Liu

Investor Relations

Alibaba Group Holding Limited

investor@alibaba-inc.com


Original: Alibaba Group Will Announce March Quarter 2026 and Full Fiscal Year 2026 Results on May 13, 2026

As of April 2026, the administration has warned that a 50% tariff on China is on the table following reports of Chinese arms shipments to Iran. It’s the latest turn in an already turbulent trade landscape. Earlier in the year, the Supreme Court struck down several existing tariffs, triggering a wave of shifting and sometimes unpredictable trade moves — including a 10% global tariff on imports and a series of proposed sector-specific increases that later stalled. $BABA

BABA, down but not out

BABA, nice bounce

I agree. Solid company even before AI, and chart looks good. I have been buying down here.

BABA, is this the bottom

Alibaba Reveals It Developed Top-Ranked AI Video Model HappyHorseApril 10, 2026 8:32 AM
IH Market News
Alibaba (NYSE:BABA) has confirmed that it is the developer behind HappyHorse-1.0, an AI video model that recently climbed to the top of global benchmark rankings despite initially launching without attribution.The model first appeared earlier this week on the Artificial Analysis benchmarking platform without identifying its creator and quickly secured the number one position in blind evaluations for both text-to-video and image-to-video generation.On Friday, developers disclosed via a newly created account on X that HappyHorse is part of Alibaba’s ATH AI Innovation Unit and is still in development. Alibaba later confirmed to CNBC that the announcement was authentic.The anonymous debut had fueled speculation over whether the model was built by a major tech company such as Tencent or Alibaba, or by an independent team.Shares of Alibaba listed in Hong Kong closed 2.12% higher on Friday following the news, while its U.S.-listed shares rose about 0.7% in premarket trading.Although Alibaba has previously released AI models with video generation features, none have attracted the same level of attention or achieved comparable rankings to HappyHorse in recent days.The confirmation comes at a time when rivals are encountering challenges in the video AI space. OpenAI recently shut down its Sora video generation platform, citing a strategic pivot toward coding tools, enterprise clients, and broader AGI development, partly due to high computational costs.Alibaba Group Holdings stock price

Original: Alibaba Reveals It Developed Top-Ranked AI Video Model HappyHorse

Alibaba $BABA — The structural decline in China’s consumer economy keeps crushing any hope of a turnaround. Regulatory overhang hasn’t gone away, margins are deteriorating, and global investors have simply lost patience with Chinese tech. Every rally gets sold because nobody believes the growth story anymore.

BABA, where is the bottom

Alibaba unveils new AI chip aimed at reducing reliance on external suppliersMarch 24, 2026 9:53 AM
IH Market News
Alibaba (NYSE:BABA) has introduced a next-generation artificial intelligence processor, the XuanTie C950, built using 5-nanometer technology and based on the open-source RISC-V chip architecture.The company said the new chip delivers more than three times the performance of its predecessor and is designed to natively support large AI models, including Qwen3 and DeepSeek V3.Morgan Stanley noted that developing chips internally helps reduce dependence on third-party suppliers while allowing companies to design processors tailored to specific applications. The bank added that proprietary chips also allow faster expansion of computing capacity during periods of strong demand and can improve efficiency by lowering the cost per token.The investment bank also said in-house chip development helps limit geopolitical risks associated with U.S. export controls and reduces regulatory exposure by aligning with government-backed technology initiatives.Alibaba Group Holdings stock price

Original: Alibaba unveils new AI chip aimed at reducing reliance on external suppliers

BABA, big gap down

Alibaba shares drop after quarterly earnings and revenue miss forecastsMarch 19, 2026 7:04 AM
IH Market News
Shares of Alibaba (NYSE:BABA) declined about 4% in premarket trading on Thursday after the Chinese technology group reported fourth-quarter results that came in below market expectations.The e-commerce and cloud computing company posted adjusted earnings of RMB7.09 per American Depositary Share, falling short of the analyst consensus of RMB10.94 by RMB3.85.Quarterly revenue totaled RMB284.84 billion, missing the RMB289.73 billion forecast and marking a 2% year-over-year increase. Excluding divested operations Sun Art and Intime, revenue would have risen 9% compared with the same period last year.Adjusted EBITA dropped 57% year on year to RMB23.40 billion, mainly reflecting heavier spending on quick commerce initiatives, improvements to user experience and additional technology investments.Alibaba’s Cloud Intelligence Group delivered strong growth, with revenue rising 36%. Sales tied to AI-related products posted triple-digit growth for the tenth straight quarter.“The rapid growth of AI + Cloud businesses in recent quarters gives us confidence to scale investments, further strengthening our full-stack AI capabilities,” said Toby Xu, Chief Financial Officer of Alibaba Group.During the quarter, the company’s Qwen AI consumer interface exceeded 300 million monthly active users. Free cash flow fell 71% year on year to RMB11.35 billion, largely due to increased spending on quick commerce operations.Separately, Bloomberg News reported on Wednesday that Alibaba plans to increase prices for several AI computing and storage services. T-Head AI computing chips are expected to rise between 5% and 34%, while Cloud Parallel File Storage will see a price increase of about 30%.Alibaba Group Holdings stock price

Original: Alibaba shares drop after quarterly earnings and revenue miss forecasts

Alibaba Group Announces December Quarter 2025 ResultsMarch 19, 2026 5:30 AM
Business Wire
Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended December 31, 2025.


“This quarter, Alibaba maintained strong investments across our core pillars of AI and consumption. AI is and will continue to be one of our primary growth engines. Our Cloud Intelligence Group’s revenue is up 36% with AI-related product revenue delivering triple-digit growth for the tenth consecutive quarter. Our Model-as-a-Service (MaaS) platform is showing strong growth, emerging as a new engine driving cloud business growth. On the consumer side, we have integrated use cases across our consumer ecosystem into Qwen app, which generated significant new users and transactions. Qwen’s consumer interface surpassed 300 million monthly active users, as AI agents perform real-world task execution at scale. Looking ahead, we are well-positioned to drive growth on both enterprise AI and consumer AI fronts, powered by our full-stack AI capabilities spanning foundation models, cloud infrastructure, and proprietary chips, alongside deep integration with our broader ecosystem,” said Eddie Wu, Chief Executive Officer of Alibaba Group.


“The rapid growth of AI + Cloud businesses in recent quarters gives us confidence to scale investments, further strengthening our full-stack AI capabilities. In consumption, our quick commerce business continues to scale while unit economics improved steadily. Our strong liquidity position and resilient cash generation provide a solid foundation to support sustained strategic investment,” said Toby Xu, Chief Financial Officer of Alibaba Group.


BUSINESS HIGHLIGHTS


In the quarter ended December 31, 2025:



Revenue was RMB284,843 million (US$40,732 million), an increase of 2% year-over-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 9% year-over-year.



Income from operations was RMB10,645 million (US$1,522 million), a decrease of 74% year-over-year, primarily due to the decrease in adjusted EBITA. Adjusted EBITA, a non-GAAP measurement, decreased 57% year-over-year to RMB23,397 million (US$3,346 million), primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses.



Net income attributable to ordinary shareholders was RMB16,322 million (US$2,334 million). Net income was RMB15,631 million (US$2,235 million), a decrease of 66% year-over-year, primarily attributable to the decrease in income from operations. Non-GAAP net income in the quarter ended December 31, 2025 was RMB16,710 million (US$2,389 million), a decrease of 67% compared to RMB51,066 million in the same quarter of 2024.



Diluted earnings per ADS was RMB5.93 (US$0.85). Diluted earnings per share was RMB0.74 (US$0.11 or HK$0.82). Non-GAAP diluted earnings per ADS was RMB7.09 (US$1.01), a decrease of 67% year-over-year. Non-GAAP diluted earnings per share was RMB0.89 (US$0.13 or HK$0.98), a decrease of 67% year-over-year.



Net cash provided by operating activities was RMB36,032 million (US$5,152 million), a decrease of 49% compared to RMB70,915 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was RMB11,346 million (US$1,622 million), a decrease of 71% compared to RMB39,020 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the investment in quick commerce. As of December 31, 2025, our cash and other liquid investments(1) were RMB560,175 million (US$80,104 million).



Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.



____________



(1)







Cash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use.







BUSINESS AND STRATEGIC UPDATES


Consumption Businesses


Alibaba China E-commerce Group


During the quarter, we executed our plan to further grow the scale of our quick commerce business, improve user experience and enhance operating efficiency, with increasing efforts in high-value food orders and non-food categories. The quick commerce business continued to improve unit economics and increase average order value month-over-month during the quarter, driven by fulfillment logistics efficiency enhancement, order mix optimization, and strong customer retention.


We rebranded “Ele.me” to “Taobao Instant Commerce” during the quarter, to closely align it with the Taobao app and strengthen our branding. In addition, Taobao Instant Commerce service was integrated into Qwen app on January 15, 2026, which further expands its customer reach and better meets diverse user needs.


Customer management revenue grew 1% year-over-year to RMB102,664 million (US$14,681 million) during the quarter. The slow-down in revenue growth was primarily due to weaker transaction activities and phase-out of the impact of software service fee implementation. The Taobao app achieved a double-digit year-over-year increase in monthly active consumers during the quarter, driven by the growing mindshare and increasing scale of our quick commerce business.


The number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 59 million. We will continue to focus on improving the retention of 88VIP membership through enhanced value proposition to our most valued customers.


Alibaba International Digital Commerce Group (“AIDC”)


For the quarter ended December 31, 2025, AIDC narrowed loss significantly year-over-year, driven by a combination of logistics optimization and investment efficiency enhancement. The unit economics of the AliExpress’ Choice business also improved on a sequential basis.


AIDC continued to diversify and enrich product offerings by leveraging the supply chain advantage of the Alibaba ecosystem. For example, further to the joint venture that we formed with Shinsegae in South Korea, we have broadened our collaboration to sell high-quality South Korean products on other platforms of AIDC, mainly Lazada. In addition, AliExpress’ “Brand+” program, which provides go-to-market solutions to brands going overseas, accelerated the onboarding of brands during the quarter and achieved substantial sales growth quarter-over-quarter.


AI + Cloud Businesses


Cloud Intelligence Group


For the quarter ended December 31, 2025, revenue from Cloud Intelligence Group was RMB43,284 million (US$6,190 million). The year-over-year growth of total revenue, and revenue excluding Alibaba consolidated subsidiaries, accelerated to 36% and 35% respectively. This momentum was primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products. AI-related product revenue continued to show strong momentum, delivering the tenth consecutive quarter of triple-digit year-over-year growth.


Alibaba Cloud continues to lead the market, attracting more customers to onboard our comprehensive AI + cloud products and services, including high-performance networking, distributed storage, cloud operating system, and services for model training and inference. In the 2025 Gartner® Magic Quadrant™ for Cloud Database Management Systems, Alibaba Cloud has been named a Leader for the sixth consecutive year. In the Gartner® Emerging Market Quadrants for Generative AI Technologies report, Alibaba Cloud has been recognized again as an Emerging Leader across all four quadrants evaluated for Generative AI, the only cloud service provider in Asia Pacific to earn this distinction.


We have maintained our position as the overall leader in China’s financial cloud market for six consecutive years since 2019H1, according to IDC’s China Semiannual Financial Cloud Tracker, 2025H1 report. Backed by our full-stack AI cloud capabilities, Alibaba Cloud led the public cloud infrastructure market for financial services with a record high of 43% market share. Meanwhile, according to IDC’s 2024 China Hybrid Cloud Market Share report published in November 2025, Alibaba Cloud retained our position as the leader in China’s hybrid cloud PaaS and services market.


We also launched the new Alibaba Cloud Linux, a next-generation AI infrastructure operating system built for cloud-based AI workloads, capable of supporting the training of trillion-parameter models while significantly improving efficiency across both training and inference.


With international markets as a key strategic priority, we have continued to expand our global footprints. Alibaba Cloud operated 92 availability zones across 29 regions worldwide as of December 31, 2025, making us China’s number one and a leading global cloud service provider.


Qwen Model Family


Qwen model family, our enterprise-grade large model suite, continues to drive rapid AI adoption across key verticals, including intelligent manufacturing, financial services, consumer retail, and cloud-native development, delivering measurable productivity gains through its full-stack, multimodal capabilities. Underpinned by cutting-edge AI foundation models, extensive real-world deployment, and clear technological leadership, our Qwen models are scaling rapidly in both technology innovation and adoption.


In February, we launched Qwen3.5, marking another important step in advancing our model capabilities. This new launch further strengthens our leadership in multimodal AI with strong performance across reasoning, coding, agentic tasks and multimodal understanding, while delivering higher inference efficiency and broader global accessibility.


Qwen models, the world’s most widely used open-source model family, surpassed 1 billion cumulative downloads on Hugging Face as of January 21, 2026.


Chip Design – T-Head


T-Head Semiconductor Co., Ltd. (“T-Head”), our chip design subsidiary, has brought its proprietary GPU into production at scale, supporting end-to-end AI workloads from training and fine-tuning to inference. Compatible with mainstream AI frameworks, T-Head enhances our long-term computing supply capacity. By combining its capabilities with our Qwen models and cloud computing, it delivers highly cost-effective AI services to external customers. This business has scaled rapidly and now contributes meaningfully to our cloud infrastructure supply.


Qwen App


Powered by our most advanced Qwen3.5 foundation model, Qwen app, our flagship consumer-facing AI application, represents an important milestone in our AI strategy: transforming proprietary model leadership into scalable, real-world applications.


On January 15, 2026, we announced a significant upgrade to Qwen app, enabling deep integration with core services across our ecosystem, including Taobao and Tmall, Taobao Instant Commerce, Amap, Fliggy, and Alipay. Qwen app intelligently coordinates services across multiple platforms, becoming the first AI assistant capable of executing large-scale, real-world complex tasks in China. This marks an important shift in the AI industry from chat-based interactions to a new era of task-oriented execution. This ecosystem-wide integration further expands our user reach, strengthens engagement across Alibaba’s platforms, and reinforces our leadership in applied AI.


Since launching its Chinese New Year campaign on February 6, Qwen app has seen tremendous user engagement. By the end of February, approximately 140 million users have had their first AI-driven shopping experience through Qwen app’s agentic features from ordering food and groceries to ticketing and travel bookings. In February, consumer-facing Qwen has surpassed 300 million monthly active users across all platforms.


DECEMBER QUARTER SUMMARY FINANCIAL RESULTS




 







Three months ended December 31,







 








 







2024







2025







 








 







RMB







RMB







US$







YoY %

Change








 







(in millions, except percentages and per share amounts)








 







 







 







 







 








Revenue







280,154







284,843







40,732







2%








 







 







 







 







 








Income from operations







41,205







10,645







1,522







(74)%(2)








Operating margin







15%







4%







 







 








Adjusted EBITDA(1)







62,054







34,057







4,870







(45)%(2)








Adjusted EBITDA margin(1)







22%







12%







 







 








Adjusted EBITA(1)







54,853







23,397







3,346







(57)%(2)








Adjusted EBITA margin(1)







20%







8%







 







 








 







 







 







 







 








Net income







46,434







15,631







2,235







(66)%(2)








Net income attributable to ordinary shareholders







48,945







16,322







2,334







(67)%(2)








Non-GAAP net income(1)







51,066







16,710







2,389







(67)%(2)








 







 







 







 







 








Diluted earnings per share(3)







2.55







0.74







0.11







(71)%(2)(4)








Diluted earnings per ADS(3)







20.39







5.93







0.85







(71)%(2)(4)








Non-GAAP diluted earnings per share(1)(3)







2.67







0.89







0.13







(67)%(2)(4)








Non-GAAP diluted earnings per ADS(1)(3)







21.39







7.09







1.01







(67)%(2)(4)








____________



(1)







See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.








(2)







The year-over-year decreases were primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses.








(3)







Each ADS represents eight ordinary shares.








(4)







The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.







DECEMBER QUARTER SEGMENT RESULTS


Revenue for the quarter ended December 31, 2025 was RMB284,843 million (US$40,732 million), an increase of 2% year-over-year compared to RMB280,154 million in the same quarter of 2024. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 9% year-over-year.


The following table sets forth a breakdown of our revenue by segment for the periods indicated:




 







Three months ended December 31,







 








 







2024







2025







 








 







RMB







RMB







US$







YoY %

Change








 







(in millions, except percentages)








Alibaba China E-commerce Group:







 







 







 







 








E-commerce







 







 







 







 








- Customer management







101,834







102,664







14,681







1%








- Direct sales, logistics and others(2)







28,824







28,919







4,135







0%








 







130,658







131,583







18,816







1%








Quick commerce(3)







13,356







20,842







2,980







56%








China commerce wholesale







6,575







6,922







990







5%








Total Alibaba China E-commerce Group







150,589







159,347







22,786







6%








 







 







 







 







 








Alibaba International Digital Commerce Group:







 







 







 







 








International commerce retail







31,553







32,351







4,626







3%








International commerce wholesale







6,203







6,850







980







10%








Total Alibaba International Digital Commerce Group







37,756







39,201







5,606







4%








 







 







 







 







 








Cloud Intelligence Group







31,742







43,284







6,190







36%








All others(4)







89,234







67,340







9,629







(25)%








Unallocated







590







603







86







 








Inter-segment elimination







(29,757)







(24,932)







(3,565)







 








Consolidated revenue







280,154







284,843







40,732







2%









____________








(1)






 






To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.








(2)






 






Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services.








(3)






 






Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue.








(4)






 






All others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Alibaba Health.







The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:




 







Three months ended December 31,







 








 







2024







2025







 








 







RMB







RMB







US$







YoY %

Change(3)








 







(in millions, except percentages)








Alibaba China E-commerce Group







60,401







34,613







4,949







(43)%








Alibaba International Digital Commerce Group







(4,952)







(2,016)







(288)







59%








Cloud Intelligence Group







3,138







3,911







559







25%








All others







(3,176)







(9,792)







(1,400)







(208)%








Unallocated(2)







(165)







(2,722)







(389)







 








Inter-segment elimination







(393)







(597)







(85)







 








Consolidated adjusted EBITA







54,853







23,397







3,346







(57)%








Less: Non-cash share-based compensation expense







(3,414)







(2,396)







(343)







 








Less: Amortization and impairment of intangible assets







(2,062)







(841)







(120)







 








Less: Impairment of goodwill, and others







(8,172)







(9,515)







(1,361)







 








Income from operations







41,205







10,645







1,522







(74)%








____________



(1)







To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.








(2)







Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.








(3)







For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate.







Alibaba China E-commerce Group


(i) Segment revenue



E-commerce Business



Revenue from our E-commerce business in the quarter ended December 31, 2025 was RMB131,583 million (US$18,816 million), an increase of 1% compared to RMB130,658 million in the same quarter of 2024.


Customer management revenue increased by 1% year-over-year, primarily due to the improvement of take rate.


Direct sales, logistics and others revenue under E-commerce business in the quarter ended December 31, 2025 was RMB28,919 million (US$4,135 million), remained stable as compared to RMB28,824 million in the same quarter of 2024, primarily driven by the increase in revenue from logistics services and value-added services, partly offset by the decrease in revenue from certain direct sales businesses.



Quick Commerce Business



Revenue from our Quick commerce business in the quarter ended December 31, 2025 was RMB20,842 million (US$2,980 million), an increase of 56% compared to RMB13,356 million in the same quarter of 2024, mainly due to order growth as a result of the rollout of “Taobao Instant Commerce” at the end of April 2025.



China Commerce Wholesale Business



Revenue from our China commerce wholesale business in the quarter ended December 31, 2025 was RMB6,922 million (US$990 million), an increase of 5% compared to RMB6,575 million in the same quarter of 2024, primarily due to an increase in revenue from value-added services provided to paying members.


(ii) Segment adjusted EBITA


Alibaba China E-commerce Group adjusted EBITA decreased by 43% to RMB34,613 million (US$4,949 million) in the quarter ended December 31, 2025, compared to RMB60,401 million in the same quarter of 2024, primarily due to the investment in quick commerce, user experiences, and technology.


Alibaba International Digital Commerce Group


(i) Segment revenue



International Commerce Retail Business



Revenue from our International commerce retail business in the quarter ended December 31, 2025 was RMB32,351 million (US$4,626 million), an increase of 3% compared to RMB31,553 million in the same quarter of 2024, primarily driven by the increase in revenue contributed by AliExpress and other international businesses, and partly offset by the decrease in revenue of Lazada. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations.



International Commerce Wholesale Business



Revenue from our International commerce wholesale business in the quarter ended December 31, 2025 was RMB6,850 million (US$980 million), an increase of 10% compared to RMB6,203 million in the same quarter of 2024, primarily due to an increase in revenue generated by cross-border related value-added services.


(ii) Segment adjusted EBITA


Alibaba International Digital Commerce Group adjusted EBITA was a loss of RMB2,016 million (US$288 million) in the quarter ended December 31, 2025, compared to a loss of RMB4,952 million in the same quarter of 2024, primarily due to significant improvement in AliExpress’ operating efficiency, and enhanced efficiencies across various businesses.


Cloud Intelligence Group


(i) Segment revenue


Revenue from Cloud Intelligence Group was RMB43,284 million (US$6,190 million) in the quarter ended December 31, 2025, an increase of 36% compared to RMB31,742 million in the same quarter of 2024. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 35% year-over-year, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.


(ii) Segment adjusted EBITA


Cloud Intelligence Group adjusted EBITA increased by 25% to RMB3,911 million (US$559 million) in the quarter ended December 31, 2025, compared to RMB3,138 million in the same quarter of 2024, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.


All Others


(i) Segment revenue


Revenue from All others segment was RMB67,340 million (US$9,629 million) in the quarter ended December 31, 2025, a decrease of 25% compared to RMB89,234 million in the same quarter of 2024, primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo and Alibaba Health.


(ii) Segment adjusted EBITA


Adjusted EBITA from All others segment in the quarter ended December 31, 2025 was a loss of RMB9,792 million (US$1,400 million), compared to a loss of RMB3,176 million in the same quarter of 2024, primarily due to the increased investment in technology businesses, partly offset by the improved results of Cainiao, Hujing Digital Media and Entertainment Group and other businesses.


DECEMBER QUARTER OTHER FINANCIAL RESULTS


Costs and Expenses


The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:




 







Three months ended December 31,







% of

Revenue

YoY

change








 







2024







2025









 







RMB







% of

Revenue







RMB







US$







% of

Revenue









 







(in millions, except percentages)








Costs and expenses:







 







 







 







 







 







 








Cost of revenue







162,524







58.0%







169,534







24,243







59.5%







1.5%








Product development expenses







14,662







5.2%







15,480







2,214







5.4%







0.2%








Sales and marketing expenses







42,675







15.2%







71,934







10,286







25.3%







10.1%








General and administrative expenses







10,851







3.9%







8,355







1,195







2.9%







(1.0)%








Amortization and impairment of intangible assets







2,062







0.7%







841







120







0.3%







(0.4)%








Impairment of goodwill







6,171







2.2%







9,515







1,361







3.3%







1.1%








Total costs and expenses







238,945







 







275,659







39,419







 







 








 







 







 







 







 







 







 








Share-based compensation expense:







 







 







 







 







 







 








Cost of revenue







540







0.2%







623







89







0.2%







0.0%








Product development expenses







1,602







0.6%







1,907







273







0.7%







0.1%








Sales and marketing expenses







535







0.2%







1,011







145







0.4%







0.2%








General and administrative expenses







1,188







0.4%







1,318







188







0.5%







0.1%








Total share-based compensation expense(1)







3,865







 







4,859







695







 







 








 







 







 







 







 







 







 








Costs and expenses excluding share-based compensation expense:







 







 







 







 







 







 








Cost of revenue







161,984







57.8%







168,911







24,154







59.3%







1.5%








Product development expenses







13,060







4.7%







13,573







1,941







4.8%







0.1%








Sales and marketing expenses







42,140







15.0%







70,923







10,141







24.9%







9.9%








General and administrative expenses







9,663







3.4%







7,037







1,007







2.5%







(0.9)%








Amortization and impairment of intangible assets







2,062







0.7%







841







120







0.3%







(0.4)%








Impairment of goodwill







6,171







2.2%







9,515







1,361







3.3%







1.1%








Total costs and expenses excluding share-based compensation expense







235,080







 







270,800







38,724







 







 








____________



(1)







This includes both cash and non-cash share-based compensation expenses.







Cost of revenue – Cost of revenue in the quarter ended December 31, 2025 was RMB169,534 million (US$24,243 million), or 59.5% of revenue, compared to RMB162,524 million, or 58.0% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 57.8% in the quarter ended December 31, 2024 to 59.3% in the quarter ended December 31, 2025, primarily due to higher logistics cost and increased bandwidth and co-location fees reflecting the growth in our quick commerce and cloud businesses respectively, partly offset by the disposal of Sun Art and Intime businesses.


Product development expenses – Product development expenses in the quarter ended December 31, 2025 were RMB15,480 million (US$2,214 million), or 5.4% of revenue, compared to RMB14,662 million, or 5.2% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 4.7% in the quarter ended December 31, 2024 to 4.8% in the quarter ended December 31, 2025.


Sales and marketing expenses – Sales and marketing expenses in the quarter ended December 31, 2025 were RMB71,934 million (US$10,286 million), or 25.3% of revenue, compared to RMB42,675 million, or 15.2% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 15.0% in the quarter ended December 31, 2024 to 24.9% in the quarter ended December 31, 2025, primarily attributable to the investment in user experiences of Alibaba China E-commerce Group.


General and administrative expenses – General and administrative expenses in the quarter ended December 31, 2025 were RMB8,355 million (US$1,195 million), or 2.9% of revenue, compared to RMB10,851 million, or 3.9% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 3.4% in the quarter ended December 31, 2024 to 2.5% in the quarter ended December 31, 2025.


Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended December 31, 2025 was RMB4,859 million (US$695 million), compared to RMB3,865 million in the same quarter of 2024.


The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:




 







Three months ended December 31,







 








 







2024







2025







 








 







RMB







RMB







US$







YoY %

Change








 







(in millions, except percentages)








By type of awards:







 







 







 







 








Alibaba Group share-based awards(1)







2,532







2,185







313







(14)%








Others(2)







1,333







2,674







382







101%








Total share-based compensation expense(3)







3,865







4,859







695







26%








____________



(1)







This represents Alibaba Group share-based awards granted to our employees.








(2)







This represents share-based awards of our subsidiaries and Ant Group granted to our employees.








(3)







This includes both cash and non-cash share-based compensation expenses.







Share-based compensation expense increased in the quarter ended December 31, 2025 compared to the same quarter of 2024. The year-over-year increase was primarily driven by our recent strategic initiative to rebrand “Ele.me” to “Taobao Instant Commerce” during the quarter, which reflected cost associated with talent retention incentive from the replacement awards plan of Ele.me. This was partly offset by the decrease in the number of Alibaba Group share-based awards granted as we have increased the proportion of long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market.


We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.


Amortization and impairment of intangible assets – Amortization and impairment of intangible assets in the quarter ended December 31, 2025 was RMB841 million (US$120 million), a decrease of 59% from RMB2,062 million in the same quarter of 2024, primarily due to the impairment of intangible assets relating to our businesses within All others segment recorded last year, as well as the full amortization of certain intangible assets.


Impairment of goodwill – Impairment of goodwill in the quarter ended December 31, 2025 was RMB9,515 million (US$1,361 million), an increase of 54% from RMB6,171 million in the same quarter of 2024, both of which are related to All others segment.


Income from operations and operating margin


Income from operations in the quarter ended December 31, 2025 was RMB10,645 million (US$1,522 million), or 4% of revenue, a decrease of 74% compared to RMB41,205 million, or 15% of revenue, in the same quarter of 2024, primarily due to the decrease in adjusted EBITA.


Adjusted EBITDA and Adjusted EBITA


Adjusted EBITDA decreased 45% year-over-year to RMB34,057 million (US$4,870 million) in the quarter ended December 31, 2025, compared to RMB62,054 million in the same quarter of 2024. Adjusted EBITA decreased 57% year-over-year to RMB23,397 million (US$3,346 million) in the quarter ended December 31, 2025, compared to RMB54,853 million in the same quarter of 2024, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.


Adjusted EBITA by segment


Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “December Quarter Segment Results” above.


Interest and investment income, net


Interest and investment income, net in the quarter ended December 31, 2025 was RMB16,221 million (US$2,320 million), an increase of 46% compared to RMB11,146 million in the same quarter of 2024, primarily due to mark-to-market changes and the decrease in impairment of our investments.


The above-mentioned investment gains and losses were excluded from our non-GAAP net income.


Other income (expense), net


Other income (expense), net in the quarter ended December 31, 2025 was an expense of RMB434 million (US$62 million), compared to income of RMB4,588 million in the same quarter of 2024, primarily due to the net exchange loss in this quarter compared to the net exchange gain in the same quarter last year, arising from the exchange rate fluctuation between Renminbi and U.S. dollar.


Income tax expenses


Income tax expenses in the quarter ended December 31, 2025 were RMB8,460 million (US$1,210 million), compared to RMB11,149 million in the same quarter of 2024.


Share of results of equity method investees


Share of results of equity method investees in the quarter ended December 31, 2025 was RMB216 million (US$31 million), a decrease of 93% compared to RMB3,129 million in the same quarter of 2024. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:




 







Three months ended December 31,








 







2024







2025








 







RMB







RMB







US$








 







(in millions)








Share of profit of equity method investees







 







 







 








- Ant Group







4,490







393







56








- Others







39







696







100








Impairment loss







(523)







(1)







–








Others(1)







(877)







(872)







(125)








Total







3,129







216







31








____________



(1)







“Others” mainly include basis differences arising from equity method investees, share-based compensation expense related to share-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed disposal of the equity method investees.







We record our share of results of all equity method investees one quarter in arrears. The year-over-year decrease in share of profit of Ant Group was mainly attributable to the decrease in fair value of certain investments and investments in new growth initiatives, including user growth, and technologies.


Net income and Non-GAAP net income


Our net income in the quarter ended December 31, 2025 was RMB15,631 million (US$2,235 million), compared to RMB46,434 million in the same quarter of 2024, primarily attributable to the decrease in income from operations.


Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the quarter ended December 31, 2025 was RMB16,710 million (US$2,389 million), a decrease of 67% compared to RMB51,066 million in the same quarter of 2024, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to non-GAAP net income is included at the end of this results announcement.


Net income attributable to ordinary shareholders


Net income attributable to ordinary shareholders in the quarter ended December 31, 2025 was RMB16,322 million (US$2,334 million), compared to RMB48,945 million in the same quarter of 2024, primarily attributable to the decrease in income from operations.


Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share


Diluted earnings per ADS in the quarter ended December 31, 2025 was RMB5.93 (US$0.85), compared to RMB20.39 in the same quarter of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in the quarter ended December 31, 2025 was RMB7.09 (US$1.01), a decrease of 67% compared to RMB21.39 in the same quarter of 2024.


Diluted earnings per share in the quarter ended December 31, 2025 was RMB0.74 (US$0.11 or HK$0.82), compared to RMB2.55 in the same quarter of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in the quarter ended December 31, 2025 was RMB0.89 (US$0.13 or HK$0.98), a decrease of 67% compared to RMB2.67 in the same quarter of 2024.


A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares.


Cash and cash equivalents, short-term investments and other treasury investments


As of December 31, 2025, cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use, were RMB560,175 million (US$80,104 million), compared to RMB597,132 million as of March 31, 2025. Other treasury investments consist of fixed deposits, certificate of deposits and marketable debt securities with original maturities over one year for treasury purposes. The decrease in cash and cash equivalents, short-term investments and other treasury investments of RMB36,957 million during the nine months ended December 31, 2025, was primarily due to (i) free cash flow outflow of RMB29,309 million (US$4,191 million), (ii) dividend payment of RMB33,690 million (US$4,818 million), (iii) cash used in repurchase of ordinary shares of RMB7,638 million (US$1,092 million), partly offset by (iv) the net proceeds from issuance of convertible unsecured senior notes and the payments for capped call transactions of RMB20,967 million (US$2,998 million), and (v) the net proceeds from issuance of exchangeable bonds of RMB10,986 million (US$1,571 million).


Net cash provided by operating activities and free cash flow


During the quarter ended December 31, 2025, net cash provided by operating activities was RMB36,032 million (US$5,152 million), a decrease of 49% compared to RMB70,915 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was RMB11,346 million (US$1,622 million), a decrease of 71% compared to RMB39,020 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the investment in quick commerce. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.


Net cash used in investing activities


During the quarter ended December 31, 2025, net cash used in investing activities of RMB25,716 million (US$3,677 million) primarily reflected capital expenditures of RMB28,999 million (US$4,147 million), and net cash outflow of RMB6,959 million (US$995 million) for investment and acquisition activities, partly offset by net decrease in short-term investments and other treasury investments by RMB9,917 million (US$1,418 million).


Net cash used in financing activities


During the quarter ended December 31, 2025, net cash used in financing activities of RMB13,742 million (US$1,965 million) primarily reflected cash used in net repayment of bank borrowings of RMB11,969 million (US$1,712 million).


Employees


As of December 31, 2025, we had a total of 128,197 employees, compared to 126,661 as of September 30, 2025.


WEBCAST AND CONFERENCE CALL INFORMATION


Alibaba Group’s management will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong Time) on Thursday, March 19, 2026.


All participants must pre-register to join this conference call using the Participant Registration link below:

English: https://s1.c-conf.com/diamondpass/10052713-hndm7s.html

Chinese: https://s1.c-conf.com/diamondpass/10052714-wh6tua.html


Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference.


A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en/ir/earnings. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10052713; Chinese conference PIN 10052714).


Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en/ir/home on March 19, 2026 to view the earnings release and accompanying slides prior to the conference call.


ABOUT ALIBABA GROUP


Alibaba Group is a global technology company focused on e-commerce and cloud computing. We enable merchants, brands and retailers to market, sell and engage with consumers by providing digital and logistics infrastructure, efficiency tools and vast marketing reach. We empower enterprises with our leading cloud infrastructure, services and work collaboration capabilities to facilitate their digital transformation and grow their businesses.


EXCHANGE RATE INFORMATION


This results announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong dollars (“HK$”) for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB6.9931 to US$1.00, the exchange rate on December 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into HK$ were made at RMB0.90322 to HK$1.00, the middle rate on December 31, 2025 as published by the People’s Bank of China. The percentages stated in this announcement are calculated based on the RMB amounts and there may be minor differences due to rounding.


SAFE HARBOR STATEMENTS


This results announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,” “intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to” and similar statements. In addition, statements that are not historical facts, including statements about Alibaba’s strategies and business and operational plans, Alibaba’s beliefs, expectations and guidance regarding the growth of its business, its operating and financial results, return on investments, strategic investments and dispositions and share repurchases, and the business outlook and quotations from management in this results announcement, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: Alibaba’s ability to compete, innovate and maintain or grow its business; risks associated with sustained investments in Alibaba’s businesses; risks related to strategic transactions; fluctuations in general economic and business conditions in China and globally; uncertainties arising from competition among countries and geopolitical tensions, including national trade, investment, protectionist or other policies and export control, economic or trade sanctions; changes to our shareholder return initiatives; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Alibaba’s filings with the U.S. Securities and Exchange Commission and announcements on the website of The Stock Exchange of Hong Kong Limited. All information provided in this results announcement is as of the date of this results announcement and are based on assumptions that we believe to be reasonable as of this date, and Alibaba does not undertake any obligation to update any forward-looking statement, except as required under applicable law.


NON-GAAP FINANCIAL MEASURES


To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement.


We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.


We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet.


Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data.


Adjusted EBITDA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.


Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.


Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects.


Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares, in each case for computing non-GAAP diluted earnings per share. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.


Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants.


The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures.


ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONSOLIDATED INCOME STATEMENTS




 







Three months ended December 31,







Nine months ended December 31,








 







2024







2025







2024







2025








 







RMB







RMB







US$







RMB







RMB







US$








 







(in millions, except per share data)







(in millions, except per share data)








Revenue







280,154







284,843







40,732







759,893







780,290







111,580








Cost of revenue







(162,524)







(169,534)







(24,243)







(452,659)







(456,744)







(65,313)








Product development expenses







(14,662)







(15,480)







(2,214)







(42,217)







(47,576)







(6,803)








Sales and marketing expenses







(42,675)







(71,934)







(10,286)







(107,842)







(191,608)







(27,399)








General and administrative expenses







(10,851)







(8,355)







(1,195)







(33,908)







(23,133)







(3,308)








Amortization and impairment of intangible assets







(2,062)







(841)







(120)







(5,503)







(2,474)







(354)








Impairment of goodwill







(6,171)







(9,515)







(1,361)







(6,171)







(9,515)







(1,361)








Other (losses) gains, net







(4)







1,461







209







847







1,758







251








 







 







 







 







 







 







 








Income from operations







41,205







10,645







1,522







112,440







50,998







7,293








Interest and investment income, net







11,146







16,221







2,320







28,275







53,689







7,677








Interest expense







(2,485)







(2,557)







(366)







(7,100)







(7,552)







(1,080)








Other income (expense), net







4,588







(434)







(62)







3,367







895







128








 







 







 







 







 







 







 








Income before income tax and share of results of equity method investees







54,454







23,875







3,414







136,982







98,030







14,018








Income tax expenses







(11,149)







(8,460)







(1,210)







(28,591)







(22,875)







(3,271)








Share of results of equity method investees







3,129







216







31







5,612







3,470







496








 







 







 







 







 







 







 








Net income







46,434







15,631







2,235







114,003







78,625







11,243








Net loss (income) attributable to noncontrolling interests







2,693







752







108







3,547







(574)







(82)








 







 







 







 







 







 







 








Net income attributable to Alibaba Group Holding Limited







49,127







16,383







2,343







117,550







78,051







11,161








 







 







 







 







 







 







 








(Accretion) Reversal of accretion of mezzanine equity







(182)







(61)







(9)







(462)







2,377







340








 







 







 







 







 







 







 








Net income attributable to ordinary shareholders







48,945







16,322







2,334







117,088







80,428







11,501








 







 







 







 







 







 







 








Earnings per share attributable to ordinary shareholders(1)







 







 







 







 







 







 








Basic







2.63







0.88







0.13







6.20







4.33







0.62








Diluted







2.55







0.74







0.11







6.04







4.18







0.60








 







 







 







 







 







 







 








Earnings per ADS attributable to ordinary shareholders(1)







 







 







 







 







 







 








Basic







21.07







7.03







1.01







49.58







34.66







4.96








Diluted







20.39







5.93







0.85







48.33







33.46







4.78








 







 







 







 







 







 







 








Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1)







 







 







 







 







 







 








Basic







18,586







18,568







 







18,892







18,564







 








Diluted







19,200







19,310







 







19,372







19,207







 








____________



(1)







Each ADS represents eight ordinary shares.







ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS




 







As of March 31,







As of December 31,








 







2025







2025








 







RMB







RMB







US$








 







(in millions)








Assets







 







 







 








Current assets:







 







 







 








Cash and cash equivalents







145,487







128,174







18,329








Short-term investments







228,826







179,955







25,733








Restricted cash and escrow receivables







43,781







42,345







6,055








Equity securities and other investments







53,780







29,981







4,287








Prepayments, receivables and other assets







202,175







231,761







33,142








Total current assets







674,049







612,216







87,546








 







 







 







 








Equity securities and other investments







356,818







440,384







62,974








Prepayments, receivables and other assets







83,431







98,329







14,061








Investment in equity method investees







210,169







208,832







29,862








Property and equipment, net







203,348







254,478







36,390








Intangible assets, net







20,911







18,607







2,661








Goodwill







255,501







245,453







35,099








Total assets







1,804,227







1,878,299







268,593








 







 







 







 








Liabilities, Mezzanine Equity and Shareholders’ Equity







 







 







 








Current liabilities:







 







 







 








Current bank borrowings







22,562







24,655







3,526








Income tax payable







11,638







11,235







1,607








Accrued expenses, accounts payable and other liabilities







332,537







351,293







50,234








Merchant deposits







274







246







35








Deferred revenue and customer advances







68,335







72,382







10,350








Total current liabilities







435,346







459,811







65,752







ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)




 







As of March 31,







As of December 31,








 







2025







2025








 







RMB







RMB







US$








 







(in millions)








Deferred revenue







4,536







4,454







637








Deferred tax liabilities







48,454







46,232







6,611








Non-current bank borrowings







49,909







51,423







7,353








Non-current unsecured senior notes







122,398







118,637







16,965








Non-current convertible unsecured senior notes







35,834







56,473







8,076








Non-current exchangeable bonds







–







11,552







1,652








Other liabilities







17,644







23,789







3,402








Total liabilities







714,121







772,371







110,448








 







 







 







 








Commitments and contingencies







 







 







 








 







 







 







 








Mezzanine equity







11,713







7,751







1,108








 







 







 







 








Shareholders’ equity:







 







 







 








Ordinary shares







1







1







–








Additional paid-in capital







381,379







382,770







54,735








Treasury shares at cost







(36,329)







(36,143)







(5,168)








Statutory reserves







15,936







16,628







2,378








Accumulated other comprehensive income (loss)







3,393







(6,431)







(920)








Retained earnings







645,478







682,830







97,644








 







 







 







 








Total shareholders’ equity







1,009,858







1,039,655







148,669








Noncontrolling interests







68,535







58,522







8,368








 







 







 







 








Total equity







1,078,393







1,098,177







157,037








 







 







 







 








Total liabilities, mezzanine equity and equity







1,804,227







1,878,299







268,593







ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




 







Three months ended December 31,







Nine months ended December 31,








 







2024







2025







2024







2025








 







RMB







RMB







US$







RMB







RMB







US$








 







(in millions)







(in millions)








Net cash provided by operating activities







70,915







36,032







5,152







135,989







66,803







9,553








Net cash used in investing activities







(111,003)







(25,716)







(3,677)







(145,868)







(77,040)







(11,017)








Net cash provided by (used in) financing activities







14,251







(13,742)







(1,965)







(72,113)







(5,571)







(797)








Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables







3,331







(1,498)







(214)







1,534







(2,941)







(420)








 







 







 







 







 







 







 








Decrease in cash and cash equivalents, restricted cash and escrow receivables







(22,506)







(4,924)







(704)







(80,458)







(18,749)







(2,681)








Cash and cash equivalents, restricted cash and escrow receivables at beginning of period







228,472







175,443







25,088







286,424







189,268







27,065








 







 







 







 







 







 







 








Cash and cash equivalents, restricted cash and escrow receivables at end of period







205,966







170,519







24,384







205,966







170,519







24,384







ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES


The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:




 







Three months ended December 31,







Nine months ended December 31,








 







2024







2025







2024







2025








 







RMB







RMB







US$







RMB







RMB







US$








 







(in millions)







(in millions)








Net income







46,434







15,631







2,235







114,003







78,625







11,243








Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA:







 







 







 







 







 







 








Interest and investment income, net







(11,146)







(16,221)







(2,320)







(28,275)







(53,689)







(7,677)








Interest expense







2,485







2,557







366







7,100







7,552







1,080








Other (income) expense, net







(4,588)







434







62







(3,367)







(895)







(128)








Income tax expenses







11,149







8,460







1,210







28,591







22,875







3,271








Share of results of equity method investees







(3,129)







(216)







(31)







(5,612)







(3,470)







(496)








Income from operations







41,205







10,645







1,522







112,440







50,998







7,293








Non-cash share-based compensation expense







3,414







2,396







343







11,189







8,472







1,211








Amortization and impairment of intangible assets







2,062







841







120







5,503







2,474







354








Impairment of goodwill, and others







8,172







9,515







1,361







11,317







9,370







1,340








Adjusted EBITA







54,853







23,397







3,346







140,449







71,314







10,198








Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights







7,201







10,660







1,524







20,093







25,734







3,680








Adjusted EBITDA







62,054







34,057







4,870







160,542







97,048







13,878







ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)


The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated:




 







Three months ended December 31,







Nine months ended December 31,








 







2024







2025







2024







2025








 







RMB







RMB







US$







RMB







RMB







US$








 







(in millions)







(in millions)








Net income







46,434







15,631







2,235







114,003







78,625







11,243








Adjustments to reconcile net income to non-GAAP net income:







 







 







 







 







 







 








Non-cash share-based compensation expense







3,414







2,396







343







11,189







8,472







1,211








Amortization and impairment of intangible assets







2,062







841







120







5,503







2,474







354








Gain on deemed disposals/disposals/revaluation of investments







(12,954)







(14,269)







(2,041)







(21,070)







(43,589)







(6,233)








Impairment of goodwill and investments, and others







13,326







13,130







1,878







21,538







15,585







2,229








Tax effects(1)







(1,216)







(1,019)







(146)







(2,888)







(995)







(142)








 







 







 







 







 







 







 








Non-GAAP net income







51,066







16,710







2,389







128,275







60,572







8,662








____________



(1)







Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others.







ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)


The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:




 







Three months ended December 31,







Nine months ended December 31,








 







2024







2025







2024







2025








 







RMB







RMB







US$







RMB







RMB







US$








 







(in millions, except per share data)







(in millions, except per share data)








Net income attributable to ordinary shareholders – basic







48,945







16,322







2,334







117,088







80,428







11,501








Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries







(87)







(66)







(10)







(218)







(324)







(46)








Adjustments for interest expense attributable to convertible unsecured senior notes







70







84







12







165







227







32








Dilution effect on earnings arising from assumed exchange of exchangeable bonds







–







(2,030)







(290)







–







–







–








Net income attributable to ordinary shareholders – diluted







48,928







14,310







2,046







117,035







80,331







11,487








Non-GAAP adjustments to net income attributable to ordinary shareholders(1)







2,404







2,802







401







10,925







(17,430)







(2,492)








 







 







 







 







 







 







 








Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS







51,332







17,112







2,447







127,960







62,901







8,995








 







 







 







 







 







 







 








Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2)







19,200







19,310







 







19,372







19,207







 








 







 







 







 







 







 







 








Diluted earnings per share(2)(3)







2.55







0.74







0.11







6.04







4.18







0.60








 







 







 







 







 







 







 








Non-GAAP diluted earnings per share(2)(4)







2.67







0.89







0.13







6.61







3.27







0.47








 







 







 







 







 







 







 








Diluted earnings per ADS(2)(3)







20.39







5.93







0.85







48.33







33.46







4.78








 







 







 







 







 







 







 








Non-GAAP diluted earnings per ADS(2)(4)







21.39







7.09







1.01







52.84







26.20







3.75








____________



(1)







Non-GAAP adjustments exclude the attributions to the noncontrolling interests for computing non-GAAP diluted earnings per share/ADS. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before taking into account the dilutive impact and excluding the attributions to the noncontrolling interests).








(2)







Each ADS represents eight ordinary shares.








(3)







Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.








(4)







Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, in each case for computing non-GAAP diluted earnings per share. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.







ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)


The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated:




 







Three months ended December 31,







Nine months ended December 31,








 







2024







2025







2024







2025








 







RMB







RMB







US$







RMB







RMB







US$








 







(in millions)







(in millions)








Net cash provided by operating activities







70,915







36,032







5,152







135,989







66,803







9,553








Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses)







(31,369)







(25,376)







(3,629)







(60,285)







(95,433)







(13,647)








Less: Changes in the buyer protection fund deposits







(526)







690







99







(5,577)







(679)







(97)








 







 







 







 







 







 







 








Free cash flow







39,020







11,346







1,622







70,127







(29,309)







(4,191)







ALIBABA GROUP HOLDING LIMITED

REVENUE


The following table sets forth a breakdown of our revenue by segment for the periods indicated:




 







Nine months ended December 31,







 








 







2024







2025







 








 







RMB







RMB







US$







YoY %

Change








 







(in millions, except percentages)








Alibaba China E-commerce Group:







 







 







 







 








E-commerce







 







 







 







 








- Customer management







254,589







270,843







38,730







6%








- Direct sales, logistics and others(2)







79,057







82,250







11,762







4%








 







333,646







353,093







50,492







6%








Quick commerce(3)







40,873







58,532







8,370







43%








China commerce wholesale







18,513







20,372







2,913







10%








Total Alibaba China E-commerce Group







393,032







431,997







61,775







10%








 







 







 







 







 








Alibaba International Digital Commerce Group:







 







 







 







 








International commerce retail







80,862







88,814







12,700







10%








International commerce wholesale







17,859







19,927







2,850







12%








Total Alibaba International Digital Commerce Group







98,721







108,741







15,550







10%








 







 







 







 







 








Cloud Intelligence Group







87,901







116,506







16,660







33%








All others(4)







255,071







188,908







27,013







(26)%








Unallocated







1,478







1,699







243







 








Inter-segment elimination







(76,310)







(67,561)







(9,661)







 








Consolidated revenue







759,893







780,290







111,580







3%








____________



(1)







To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.








(2)







Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services.








(3)







Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue.








(4)







All others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Qwen Consumer Business Group, Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap.







ALIBABA GROUP HOLDING LIMITED

INFORMATION ABOUT SEGMENTS


The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:




 







Nine months ended December 31,







 








 







2024







2025







 








 







RMB







RMB







US$







YoY %

Change(3)








 







(in millions, except percentages)








Alibaba China E-commerce Group







153,481







83,499







11,940







(46)%








Alibaba International Digital Commerce Group







(11,563)







(1,913)







(273)







83%








Cloud Intelligence Group







8,136







10,469







1,497







29%








All others







(6,086)







(14,577)







(2,084)







(140)%








Unallocated(2)







(2,307)







(4,362)







(624)







 








Inter-segment elimination







(1,212)







(1,802)







(258)







 








Consolidated adjusted EBITA







140,449







71,314







10,198







(49)%








Less: Non-cash share-based compensation expense







(11,189)







(8,472)







(1,211)







 








Less: Amortization and impairment of intangible assets







(5,503)







(2,474)







(354)







 








Less: Impairment of goodwill, and others







(11,317)







(9,370)







(1,340)







 








Income from operations







112,440







50,998







7,293







(55)%








____________



(1)







To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.








(2)







Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.








(3)







For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260318501558/en/
Investor Relations Contact

Lydia Liu

Head of Investor Relations

Alibaba Group Holding Limited

investor@alibaba-inc.com


Media Contacts

Cathy Yan

cathy.yan@alibaba-inc.com

Ivy Ke

ivy.ke@alibaba-inc.com


Original: Alibaba Group Announces December Quarter 2025 Results