Alibaba Reports Q2 FY2025: Revenue Up 2%, Net Income Down 66%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Source: Newsfilter
- Revenue Growth: Alibaba's revenue for Q2 FY2025 reached RMB 284.84 billion (approximately USD 40.73 billion), marking a 2% year-over-year increase, and a 9% increase on a like-for-like basis excluding disposed businesses, indicating resilience in core operations.
- Significant Net Income Decline: Net income fell to RMB 15.63 billion (approximately USD 2.24 billion), a 66% decrease year-over-year, primarily due to a 74% drop in operating income, reflecting the pressure from investments in the quick commerce sector.
- Strong Cloud Business Performance: The Cloud Intelligence Group generated revenue of RMB 43.28 billion (approximately USD 6.19 billion), a 36% year-over-year increase, with AI-related product revenue achieving triple-digit growth for the tenth consecutive quarter, showcasing the returns from ongoing investments in cloud and AI.
- Deteriorating Cash Flow: Net cash provided by operating activities was RMB 36.03 billion (approximately USD 5.15 billion), down 49% year-over-year, while free cash flow dropped to RMB 11.35 billion (approximately USD 1.62 billion), a 71% decline, primarily impacted by investments in quick commerce, highlighting challenges in liquidity management.
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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: 125.400
Low
180.00
Averages
203.09
High
230.00
Current: 125.400
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 four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health 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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