**Alibaba Group Reports Disappointing Q3 Fiscal 2026 Earnings**
Alibaba Group (BABA) reported non-GAAP diluted earnings of $1.01 per ADS for the third quarter of fiscal 2026, missing estimates by 47.12%. Revenues for the quarter totaled $40.7 billion (RMB 284.8 billion), falling short of consensus expectations by 1.95%, although showing a 2% increase year over year when excluding disposed businesses.
The company’s revenue growth was primarily driven by its Cloud Intelligence Group and quick commerce business. However, aggressive investments in user experience and technology impacted margins, resulting in a 45% year-over-year decline in adjusted EBITDA to RMB 34.1 billion ($4.9 billion). The quick commerce segment alone reported a revenue growth of 56% year over year, totaling RMB 20.8 billion ($3 billion). Additionally, the company has expanded its highest-spending consumer group, the 88VIP members, to over 59 million.
