Alibaba Group Holding Limited (BABA) reported its first-quarter fiscal 2027 results on [date not specified], revealing mixed outcomes. Non-GAAP earnings per ADS were $1.26, falling short of the Zacks Consensus Estimate of $1.94, while revenues reached $39.64 billion, exceeding expectations of $38.63 billion. The company achieved a 9% year-over-year revenue growth.
Alibaba Cloud’s external revenues surged by 45% year-over-year, with AI-related product revenues at RMB 12.376 billion, now constituting 35% of external cloud revenues. Chief Financial Officer Toby Xu highlighted a quarterly capital expenditure of RMB 67.678 billion, part of a planned RMB 380 billion three-year investment strategy, aimed at enhancing AI infrastructure and cloud profitability.
Quick commerce revenues grew by 45% to RMB 53.3 billion, with expectations for overall profitability in fiscal 2029. However, the company recorded an adjusted EBITA loss of RMB 13.9 billion in AI Labs and Applications due to high investment costs. Free cash flow was an outflow of RMB 44.670 billion, primarily linked to increased cloud spending.
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