M Stanley's 1FQ26 Earnings Projections for BABA-W (Table)

Total Revenue Overview: Alibaba's total revenue for 1FQ26 reached RMB 248.404 billion, showing a year-over-year increase of 2.1% and a quarter-over-quarter increase of 5.1%.

Segment Performance: The Taobao Tmall Group led with a revenue of RMB 123.481 billion (+8.9% YoY), followed by the Cloud Intelligence Group at RMB 32.39 billion (+22% YoY) and Local Services Group at RMB 18.663 billion (+15% YoY).

Adjusted EBITA Insights: Adjusted EBITA decreased by 10.9% to RMB 37.691 billion, with notable declines in the Digital Media and Entertainment Group and AIDC, while Local Services Group saw a significant increase of 1,350.5%.

Profit Margins: The adjusted EBITA margin fell to 15.2%, down 3.3 percentage points year-over-year, with the TTG experiencing a decrease of 7.1 percentage points in its margin.