Loading...
01/09 22:51
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
EPS $1.74, an increase from $1.48 year-over-year.
Total Revenue RMB236.5 billion, an increase of 7% year-over-year; excluding Sun Art and Intime, revenue grew 10%.
Adjusted EBITDA RMB32.6 billion, an increase of 36% year-over-year, primarily due 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.
Net Cash Position RMB366.4 billion, or $50.5 billion.
Customer Management Revenue (CMR) Increased by 12% year-over-year, primarily driven by the improvement of take rate.
Revenue from Taobao and Tmall Group RMB101.4 billion, an increase of 9% year-over-year.
Adjusted EBITDA for Taobao and Tmall Group RMB41.7 billion, an increase of 8% year-over-year.
Revenue from AIDC RMB33.6 billion, an increase of 22% year-over-year.
Adjusted EBITDA for AIDC Loss of RMB3.6 billion, improved from a loss of RMB4.1 billion year-over-year.
Revenue from Cloud Intelligence Group Increased by 18% year-over-year.
Adjusted EBITDA for Cloud Intelligence Group Increased by 69% year-over-year.
Revenue from Digital Media and Entertainment Group RMB5.6 billion, an increase of 12% year-over-year.
Adjusted EBITDA for Digital Media and Entertainment Group Turned positive, primarily driven by Youku’s profitability.
Total Cash Dividends $2 per ADS, amounting to $4.6 billion.
Share Repurchases $11.9 billion, contributing to a total of $16.5 billion returned to shareholders.
AI-related product revenue: AI-related product revenue maintained triple-digit year-over-year growth for the seventh consecutive quarter.
Qwen3 model: In April, we released our next generation Qwen3 model as open source, ranking amongst the top performers globally on multiple authoritative benchmarks.
AIDC revenue growth: Fueled by strong momentum in its cross-border businesses, AIDC achieved year-over-year revenue growth of 22% this quarter.
Cloud revenue growth: Driven by robust and growing AI demand, Alibaba Cloud’s revenue growth accelerated to 18% this quarter.
Adjusted EBITDA: Adjusted EBITDA increased 36% year-over-year, primarily attributable 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.
Investment in AI and Cloud: We are actively exploring diversified solutions to meet rising customer demand and continue to invest in AI infrastructure and advanced technologies.
Exit from non-core assets: We expect to generate $2.6 billion in maximum cash proceeds from the sale of Sun Art and Intime.
Global AI Supply Chain Uncertainties: Uncertainties persist in the global AI supply chain, which could impact Alibaba's ability to meet rising customer demand despite strong demand for Cloud and AI.
Regulatory Challenges: Potential uncertainties in global trade regulations may affect Alibaba's operations, particularly in its cross-border businesses.
Investment Risks: Increased investments in e-commerce businesses and technology may impact short-term profitability, as seen with the decrease in free cash flow.
Economic Factors: Dynamic macro and geopolitical environment poses challenges that could affect Alibaba's operational efficiency and growth.
Competition in AI and Cloud: Intensifying competition in the AI and Cloud sectors may impact Alibaba's market leadership and revenue growth.
Profitability of Non-Core Businesses: Several loss-making businesses are on track to turn profitable, but ongoing investments in strategic AI-driven initiatives may delay profitability.
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 in technology.
AI Product Growth: AI-related product revenue has maintained triple-digit year-over-year growth for the seventh consecutive quarter, indicating strong demand and adoption across various industries.
Investment in Core Businesses: The company is optimizing its business portfolio by exiting non-core assets and focusing on core businesses, particularly in e-commerce and AI + Cloud.
Open Source Initiatives: Alibaba has released over 200 models under the Qwen family, making it the world’s largest open source model family, which is expected to drive innovation and new applications.
International E-commerce Profitability: Alibaba is on track to achieve overall quarterly profitability in its international e-commerce business in the coming fiscal year.
Revenue Growth Expectations: For fiscal year 2026, Alibaba expects to continue driving growth in core businesses of e-commerce and AI + Cloud.
Cash Proceeds from Asset Sales: Alibaba expects to generate $2.6 billion in maximum cash proceeds from the sale of Sun Art and Intime.
Dividends: The board approved an annual dividend of $1.05 per ADS and a special dividend of $0.95 per ADS, totaling $2 per ADS in cash dividends this year.
Share Repurchase Program: Alibaba has returned a total of $16.5 billion to shareholders for this fiscal year through share repurchases and dividends.
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.
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 returned to shareholders for this 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.
