BABA Earnings Prediction
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.
BABA Key Earning Data
BABA Earnings Analysis
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.
BABA FAQs
How does BABA typically perform around its earnings report dates?
BABA's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -5.42% change leading up to the report and a -0.94% change in the 10 days following the release.
Is Alibaba Group Holding Ltd (BABA) Q3 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
BABA Earning Call Sentiment
Alibaba Group Holding Limited (NYSE:BABA) Q3 2025 Earnings Call Transcript
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