Alibaba's Non-GAAP EPADS of $2.02 falls short by $0.14, with revenue of $34.57B missing expectations by $910M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Should l Buy BABA?
Source: SeekingAlpha
Alibaba Q1 Financial Results
- Earnings Performance: Alibaba reported a non-GAAP earnings per ADS of $2.02 for Q1, which fell short of expectations by $0.14.
- Revenue Figures: The company generated revenue of $34.57 billion, reflecting a 2% year-over-year increase, but this also missed analyst estimates by $910 million.
Revenue Insights
- Adjusted Revenue Growth: When excluding revenue from disposed businesses such as Sun Art and Intime, Alibaba's revenue would have shown a more robust growth of 10% year-over-year.
- Currency Conversion: The reported revenue in RMB was 247,652 million, equivalent to approximately $34,571 million.
Market Context and Future Outlook
- Monetary Policy Impact: Analysts suggest that China's easing monetary policy could serve as a bullish catalyst for Alibaba's growth.
- Valuation Perspective: Alibaba is viewed as a $277 billion tech conglomerate currently trading at a discount, indicating potential investment opportunities.
- Cloud Business Potential: The cloud segment is anticipated to be a key revenue driver in future quarters, as highlighted in the Q1 preview.
- Debt Refinancing Plans: The company is reportedly seeking to refinance a $6.5 billion bank loan that is due next year, indicating ongoing financial management efforts.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 158.730
Low
180.00
Averages
203.09
High
230.00
Current: 158.730
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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