Alibaba Group Holding Ltd. (NYSE:BABA) shares fell Wednesday after the e-commerce and cloud-computing company reported mixed fiscal fourth-quarter 2026 results, as strong revenue growth and accelerating AI momentum were overshadowed by a sharp decline in adjusted earnings.

The company reported quarterly revenue of $35.28 billion, up 3% from a year earlier and slightly ahead of analyst estimates of $35.23 billion. Excluding the divested Sun Art and Intime businesses, revenue increased 11% on a like-for-like basis.

Adjusted earnings per American Depositary Share came in at 9 cents, missing analyst expectations of $1.12. Adjusted net income fell nearly 100% to $12 million, while adjusted EBITA declined 84% to $740 million as Alibaba increased investments in AI initiatives, Taobao Instant Commerce and user experience improvements.

Net income rose 96% year over year, helped by gains from equity investments and the absence of prior-year disposal losses tied to Sun Art and Intime.

China Commerce And AI Expansion

Alibaba's China E-commerce Group revenue rose 6% to $17.72 billion as the company expanded AI-powered shopping tools and improved profitability in its quick-commerce operations.

The company integrated Taobao and Tmall services into its Qwen app and ...