Alibaba Group (BABA) reported first-quarter fiscal 2027 non-GAAP adjusted earnings of $1.26 per ADS on August 15, 2023, missing the Zacks Consensus Estimate by 35.05%. In domestic currency, earnings were RMB 8.52, down 42% year-over-year. The company’s revenues for the same period reached $39.64 billion, exceeding the consensus estimate by 2.61%, with a year-over-year increase of 9% in domestic currency to RMB 268.95 billion.
The performance was bolstered by growth in AI Cloud and Compute Services, as well as the expansion of the China Quick Commerce business. However, increased investments in AI infrastructure pressured profit margins, with adjusted EBITDA falling 14% to RMB 39.1 billion ($5.8 billion). Capital expenditures rose 75% year-over-year to RMB 67.7 billion ($10 billion), driven by investment in AI technology.
As of June 30, 2026, Alibaba’s cash and liquid investments totaled RMB 474.5 billion ($69.9 billion). The company generated RMB 22.9 billion ($3.4 billion) from operations, an 11% increase compared to the previous year, but reported a free cash flow outflow of RMB 44.7 billion ($6.6 billion), attributed to capital expenditures for cloud infrastructure.
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