The company posted quarterly revenue of $40.73 billion, up 2% year-over-year, missing the analyst consensus estimate of $41.26 billion.
On a like-for-like basis, excluding revenue from the divested Sun Art and Intime businesses, Alibaba’s revenue would have grown 9% Y/Y.
The adjusted earnings per American Depositary Share (ADS) came in at $1.01, missing the analyst consensus estimate of $1.73.
Adjusted net income declined 67% to $2.39 billion, while adjusted EBITA slipped 57% Y/Y to $3.35 billion, reflecting investments in Taobao Instant Commerce and enhancements to user experiences and technology.
Net income, however, fell 66% Y/Y, primarily attributable to the decrease in income from operations.
Segment Performance
Alibaba’s China E-commerce Group revenue rose 6% to $22.79 billion.
The company expanded its quick commerce business during the quarter, improving user experience and efficiency while focusing more on higher-value food orders and non-food categories. It increased average order value and improved unit economics by improving logistics, optimizing the order mix, and strengthening customer retention.
It rebranded Ele.me to Taobao Instant Commerce to align it more closely with the Taobao app and integrated the service into the Qwen app in January 2026 to reach more users.
Customer management revenue rose 1% Y/Y, as weaker transactions and the phase-out of software service fee ...
