The chart below shows how BABA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BABA sees a -5.42% change in stock price 10 days leading up to the earnings, and a -0.94% change 10 days following the report. On the earnings day itself, the stock moves by +1.59%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Beat: Alibaba Group Holding Limited reported an EPS of $2.93, exceeding expectations of $2.67, indicating strong financial performance.
Revenue Growth Excluding Subsidiaries: Overall revenue, excluding Alibaba consolidated subsidiaries, grew 11% year-over-year, showcasing solid growth across the company.
Sustained Triple-Digit AI Growth: AI-related product revenue maintained triple-digit year-over-year growth for the sixth consecutive quarter, reflecting the success of their AI strategy.
Cloud Revenue Growth: The Cloud Intelligence Group's revenue grew 13%, driven by strong demand for public cloud products, highlighting the momentum in their cloud business.
Customer Management Revenue Growth: Taobao and Tmall saw a 9% year-over-year growth in customer management revenue, driven by increased online GMV and improved monetization strategies.
User Growth and Engagement: The number of 88VIP members reached 49 million, demonstrating strong user growth and engagement within their core consumer group.
First Quarter Profitability: AIDC is expected to achieve its first quarter of profitability in the next fiscal year, indicating positive future performance.
First Quarter Profitability: AMAP achieved profitability for the first time this quarter, showcasing improved operational efficiency.
Strategic Asset Divestment: Alibaba's strategic divestment of non-core assets and share buybacks reflect a focus on enhancing operational efficiency and shareholder value.
Strong Net Cash Position: The company maintains a strong net cash position of RMB 378.5 billion ($51.9 billion), providing confidence for future investments in cloud and AI infrastructure.
Negative
Free Cash Flow Decline: Free cash flow decreased 31% to RMB 39 billion, attributed to increased expenditure on cloud infrastructure investments.
Logistics Segment Challenges: Revenue from Cainiao decreased by 1% and its adjusted EBITDA decreased by 76%, indicating challenges in the logistics segment.
Adjusted EBITDA Loss: AIDC's adjusted EBITDA was a loss of RMB 5 billion, worsening from a loss of RMB 3.1 billion in the same quarter last year, highlighting ongoing financial struggles in this area.
Profitability Pressure from Investments: Despite overall revenue growth, the increase in investments in e-commerce businesses has put pressure on profitability, with adjusted EBITDA growth only at 4%.
Profitability Challenges in Retail: The company is facing challenges in maintaining profitability in its international commerce retail business, despite a revenue increase of 36%.
Logistics Network Restructuring: The ongoing restructuring of Cainiao and its focus on building a global smart logistics network may lead to short-term operational inefficiencies.
Alibaba Group Holding Limited (NYSE:BABA) Q3 2025 Earnings Call Transcript
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