Alibaba Group’s Outlook for 2026
Alibaba Group (NYSE: BABA) reports modest growth in its e-commerce sector, with a 6% year-over-year revenue increase for the quarter ending December 31, 2025, primarily driven by quick commerce. Despite recent stabilization, Alibaba anticipates continued margin pressure due to fierce competition from platforms like Pinduoduo and Douyin, projecting mid-to-high-single-digit growth for its core platforms.
Conversely, Alibaba Cloud is experiencing significant growth from AI demand, reporting a remarkable 36% revenue increase in the same quarter and triple-digit growth in AI-related workloads over the past ten quarters. The company holds over 35% of China’s cloud market share and is focused on enhancing its infrastructure by expanding data center capacity and developing proprietary AI models.
