DBT Bureau
Pune, 26 Nov 2025
Alibaba Group Holding Limited announced its results for the quarter and six months ended September 30, 2025.
Alibaba Group CEO Wu Yongming stated, “We are currently in an investment phase, building AI technology and infrastructure platforms , as well as a large-scale consumer platform , to create long-term strategic value. This quarter, we made significant strategic investments in these areas, with our two core businesses, AI+ Cloud and Large-Scale Consumer, maintaining strong growth. Strong AI demand further accelerated the growth of Cloud Intelligence Group’s revenue, with quarterly revenue increasing by 34% year-on-year , including triple-digit growth in AI -related product revenue for the ninth consecutive quarter. In the consumer sector, the expansion of instant retail scale and significant improvement in unit economics drove rapid growth in monthly active consumers on the Taobao app .”
Alibaba Group CFO Xu Hong stated, “Our core business revenue maintained strong growth, AI revenue accounted for an increased proportion of external cloud commercialization revenue, and customer management revenue increased by 10% year-on-year. We are investing profits and free cash flow into future developments, and short-term profitability is expected to fluctuate. Over the past four quarters, our capital expenditure on AI+ cloud infrastructure has been approximately RMB 120 billion.”
Performance Summary
For the quarter ended September 30 , 2025 :
- Revenue was RMB 247.795 billion ( US$ 34.808 billion), representing a year-on-year increase of 5% . Excluding revenue from the disposed businesses of Sun Art Retail and Intime, revenue growth on a comparable basis would have been 15% .
- Operating profit was RMB 5.365 billion ( US$ 754 million), a decrease of 85% year-over-year , primarily due to a decrease in adjusted EBITA . Adjusted EBITA (a non-GAAP financial metric) decreased by 78% year-over-year to RMB 9.073 billion ( US$ 1.274 billion), mainly attributable to investments in instant retail, user experience, and technology, partially offset by improved operating performance resulting from double-digit revenue growth of Alibaba China e-commerce group, continued growth in cloud business, and improved operational efficiency across multiple business segments.
- Net income attributable to ordinary shareholders was RMB20.99 billion ( US$ 2.948 billion). Net income was RMB20.612 billion ( US$ 2.895 billion), a decrease of 53% year – over-year , primarily due to a decrease in operating profit. For the quarter ended September 30 , 2025 , non-GAAP net income was RMB10.352 billion ( US$ 1.454 billion), a decrease of 72% compared to RMB36.518 billion in the same period of 2024 .
- Diluted earnings per ADS were RMB8.75 ( US$ 1.23 ) and diluted earnings per share were RMB1.09 ( US$ 0.15 or HK$ 1.19 ). Non-GAAP diluted earnings per ADS were RMB4.36 ( US$ 0.61 ), a decrease of 71% year-over-year, and non-GAAP diluted earnings per share were RMB0.55 ( US$ 0.08 or HK$ 0.60 ), a decrease of 71% year-over-year .
- Net cash flow from operating activities was RMB10.099 billion ( US$ 1.419 billion), a decrease of 68% compared to RMB31.438 billion in the same period of 2024. Free cash flow (a non-GAAP financial liquidity metric) was a net outflow of RMB21.840 billion ( US$ 3.068 billion), a decrease compared to a net inflow of RMB13.735 billion in the same period of 2024. The decrease in free cash flow was primarily attributable to investments in instant retail and increased spending on our cloud infrastructure. As of September 30 , 2025 , our cash and other current investments (1) were RMB573.889 billion ( US$ 80.614 billion).
For the six months ended September 30 , 2025 :
- Revenue was RMB 495.447 billion ( US$ 69.595 billion), representing a year-on-year increase of 3% . Excluding revenue from the disposed businesses of Sun Art Retail and Intime, revenue growth on a comparable basis would have been 12% .
- Operating profit was RMB40.353 billion ( US$ 5.668 billion), a decrease of 43% year-on-year , primarily due to a decrease in adjusted EBITA , partially offset by a one-off provision (2) made in the same period last year. Adjusted EBITA (a non-GAAP financial metric) decreased by 44% year-on-year to RMB47.917 billion ( US$ 6.731 billion), mainly attributable to investments in instant retail, user experience, and technology, partially offset by improved operating performance resulting from double-digit revenue growth of Alibaba China e-commerce group, continued growth of cloud business, and improved operational efficiency across multiple business segments.
- Net income attributable to ordinary shareholders was RMB64.106 billion ( US$ 9.005 billion). Net income was RMB62.994 billion ( US$ 8.849 billion), a decrease of 7% year-on-year , mainly due to a decrease in operating profit, partially offset by changes in the market value of our equity investments, gains from the disposal of Trendyol’s local services business, and subsequent decreases in our investment impairment and net foreign exchange losses. For the six months ended September 30 , 2025 , non-GAAP net income was RMB43.862 billion ( US$ 6.161 billion), a decrease of 43% compared to RMB77.209 billion in the same period of 2024 .
- Diluted earnings per ADS were RMB26.73 ( US$ 3.75 ) and diluted earnings per share were RMB3.34 ( US $ 0.47 or HK$ 3.66 ). Non-GAAP diluted earnings per ADS were RMB19.10 ( US$ 2.68 ), a decrease of 39% year-over-year, and non-GAAP diluted earnings per share were RMB2.39 ( US$ 0.34 or HK$ 2.62 ), a decrease of 39% year-over-year .
- Net cash flow from operating activities was RMB30.771 billion ( US$ 4.322 billion), a 53% decrease compared to RMB65.074 billion in the same period of 2024. Free cash flow (a non-GAAP financial liquidity metric) was a net outflow of RMB40.655 billion ( US$ 5.711 billion), compared to a net inflow of RMB31.107 billion in the same period of 2024. The decrease in free cash flow was primarily attributable to increased spending on our cloud infrastructure and investments in instant retail. As of September 30 , 2025 , our cash and other current investments were RMB573.889 billion ( US$ 80.614 billion).
