Alibaba Group Holding Limited (BABA) reported Q1 fiscal 2026 non-GAAP earnings of $2.06 per ADS, falling short of the Zacks Consensus Estimate by 3.29%. Year-over-year, earnings in domestic currency declined 10% to RMB 14.75. Revenue reached $34.6 billion, exceeding the consensus estimate by 0.9%, with a revenue increase of 2% year-over-year in RMB to 247.7 billion; excluding disposed businesses, revenues increased 10% on a like-for-like basis.
Key revenue drivers included strong performance in the Cloud Intelligence Group and domestic e-commerce expansion. Notably, the Alibaba China E-commerce Group generated RMB 140.1 billion ($19.6 billion), a 10% increase year-over-year, while the Cloud Intelligence Group saw revenues rise 26% to RMB 33.4 billion ($4.7 billion). Following the earnings report, BABA shares rose 6.76% in pre-market trading, reflecting a 59.2% increase year-to-date, compared to the Zacks Retail and Wholesale sector’s 10.4% return.
As of June 30, 2025, Alibaba’s cash and cash equivalents were RMB 183.1 billion ($25.6 billion), an increase from RMB 145.5 billion ($20.3 billion) at the end of the previous quarter. The company generated RMB 20.7 billion ($2.9 billion) in cash from operations, down from RMB 33.6 billion ($4.7 billion) in the prior quarter, largely due to increased investments in cloud infrastructure and quick commerce operations.
