Loading...
01/09 22:53
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with a 7% revenue increase and a 36% rise in adjusted EBITDA. AI and cloud investments show promising growth, with triple-digit AI revenue growth and an 18% increase in cloud revenue. Shareholder returns are robust, with substantial dividends and share repurchases. Despite some concerns about profit margins due to infrastructure investments, the overall sentiment is positive, especially with optimistic guidance on AI and e-commerce. The Q&A highlights confidence in future growth, supporting a positive stock price outlook.
Total Revenue RMB236.5 billion, an increase of 7% year-over-year, with revenue excluding Sun Art and Intime growing 10% year-over-year.
Adjusted EBITDA RMB32.6 billion, an increase of 36% year-over-year, primarily attributable to revenue growth and improved operating efficiency.
Non-GAAP Net Income RMB29.8 billion, an increase of 22% year-over-year.
GAAP Net Income RMB12 billion, an increase of RMB11.1 billion year-over-year, primarily due to market-to-market changes from equity investments.
Operating Cash Flow RMB27.5 billion, an increase of 18% year-over-year.
Free Cash Flow RMB3.7 billion, a decrease of 76% year-over-year, mainly attributed to increased cloud infrastructure expenditure.
Cash Dividends $2 per ADS, representing a total of $4.6 billion, with a 5% increase year-over-year.
Share Repurchases $11.9 billion returned to shareholders this fiscal year.
Revenue from Taobao and Tmall Group RMB101.4 billion, an increase of 9% year-over-year.
Customer Management Revenue (CMR) Increased by 12% year-over-year, primarily driven by the improvement of take rate.
AIDC Revenue RMB33.6 billion, an increase of 22% year-over-year, primarily driven by strong performance in cross-border businesses.
Cloud Revenue Growth 18% year-over-year, with overall revenue excluding Alibaba consolidated subsidiaries increasing by 17%.
AI-related Product Revenue Growth Maintained triple-digit year-over-year growth for the seventh consecutive quarter.
Adjusted EBITDA Margin Decreased quarter-over-quarter by 1.9 percentage points due to increased investments in technology and product development.
Revenue from Digital Media and Entertainment Group RMB5.6 billion, an increase of 12% year-over-year, primarily driven by strong performance in the movie and entertainment businesses.
Adjusted EBITDA of Digital Media and Entertainment Group Turned positive, primarily driven by Youku's profitability.
Revenue from Local Service Groups Grew 10%, driven by combined order growth of both AMAP and Ele.me.
Revenue from All Other Segments Increased by 5%, primarily due to revenue increases from Freshippo and Alibaba Health.
Qwen3 Model Release: In April, we released our next generation Qwen3 model as open source, ranking amongst the top performers globally on multiple authoritative benchmarks.
AI Product Revenue Growth: Revenue from AI related products has maintained triple digit year-over-year growth for the seventh consecutive quarter.
Qwen3 Series Launch: In April, we launched Qwen3 series, a new generation of hybrid reasoning models that combine fast responses and deeper reasoning.
E-commerce User Growth: Taobao and Tmall Group saw stronger momentum in user growth with 88VIP members surpassing 50 million.
AIDC Revenue Growth: Fueled by strong momentum in its cross-border businesses, AIDC achieved year-over-year revenue growth of 22% this quarter.
Adjusted EBITDA Growth: Adjusted EBITDA increased 36% year-over-year, primarily due to revenue growth and improved operating efficiency.
Cash Dividends: The board approved an annual dividend of $1.05 per ADS, representing a 5% increase year-over-year.
Focus on Core Businesses: We continue to optimize our business portfolio by exiting non-core assets, expecting to generate $2.6 billion from the sale of Sun Art and Intime.
Investment in AI and Cloud: We are actively exploring diversified solutions to meet rising customer demand and investing in AI infrastructure.
Supply Chain Challenges: Uncertainties persist in the global AI supply chain, which could impact Alibaba's operations despite strong customer demand.
Regulatory Issues: Potential uncertainties in global trade regulations may affect Alibaba's international e-commerce business.
Economic Factors: Dynamic macro and geopolitical environment poses risks to Alibaba's business operations and growth strategies.
Competitive Pressures: Increased investments in technology and product development are necessary to maintain competitive edge in the rapidly evolving AI and cloud markets.
Investment Risks: Higher depreciation and amortization expenses due to ramped-up infrastructure investments may weigh on profit margins.
AI + Cloud Strategy: Alibaba is focusing on a user-first AI-driven strategy, investing in AI infrastructure and advanced technologies to strengthen its global leadership.
AI Product Growth: AI-related product revenue has maintained triple-digit year-over-year growth for the seventh consecutive quarter.
E-commerce User Growth: Taobao and Tmall Group saw stronger momentum in user growth, with 88VIP members surpassing 50 million.
AIDC Growth: AIDC achieved year-over-year revenue growth of 22%, driven by strong performance in cross-border businesses.
Divestment of Non-Core Assets: Alibaba is optimizing its business portfolio by exiting non-core assets, expecting to generate $2.6 billion from the sale of Sun Art and Intime.
Revenue Growth Expectations: For fiscal year 2026, Alibaba expects to continue focusing on driving growth in core businesses of e-commerce and AI + Cloud.
Cash Dividends: The board approved an annual dividend of $1.05 per ADS, a 5% increase year-over-year, and a special dividend of $0.95 per ADS.
Investment in AI and Cloud: Alibaba maintains a strong net cash position of $50.5 billion, allowing for increased investment in Cloud and AI infrastructure.
Profitability in International E-commerce: Alibaba remains on track to achieve overall quarterly profitability in its international e-commerce business in the coming fiscal year.
Adjusted EBITDA Growth: Adjusted EBITDA increased by 36% year-over-year, reflecting improved operating efficiency and revenue growth.
Annual Dividend: $1.05 per ADS, representing a 5% increase year-over-year.
Special Dividend: $0.95 per ADS, higher than last year's $0.66 per ADS.
Total Cash Dividends: $2 per ADS, amounting to $4.6 billion.
Share Repurchase Program: $11.9 billion in share repurchases, resulting in a 5.1% net reduction in share count.
Total Return to Shareholders: $16.5 billion for the fiscal year.
Despite strong cloud revenue growth and strategic AI investments, Alibaba faces significant challenges, including supply chain constraints, substantial financial losses in quick commerce, and regulatory risks. The 78% decrease in adjusted EBITA and 53% drop in GAAP net income highlight financial strain. Uncertainties in AI ROI and intense competition further exacerbate risks, overshadowing positive developments. These factors suggest a likely negative stock price movement.
The earnings call highlights strong growth in AI and cloud segments, with triple-digit growth in AI products and a 26% increase in cloud revenue. The company is investing significantly in quick commerce and AI, which are seen as historic opportunities. Despite management's avoidance of specific ROI details, the overall sentiment is positive due to strong financial performance, strategic investments, and a 5% dividend increase. The Q&A further supports this with optimistic guidance on quick commerce and AI, likely leading to a positive stock price movement.
The earnings call reveals strong financial performance with increased EPS, revenue, and adjusted EBITDA, alongside optimistic AI-driven growth and cloud monetization. Shareholder returns are substantial, with significant share repurchases and dividends. Despite some unclear responses in the Q&A, the positive trends in AI and cloud, along with stable e-commerce monetization, outweigh concerns. The sentiment is positive, likely resulting in a 2%-8% stock price increase over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
