**Alibaba Group Holding’s Struggles in Q3 Fiscal 2026**
Alibaba Group Holding (BABA) reported total revenues of RMB 284.8 billion ($40.7 billion) for the third-quarter fiscal 2026, representing a mere 2% year-over-year increase. This follows a significant decline from 15% growth in the previous quarter. Key metrics indicate a worrying trend, particularly in Customer Management Revenue (CMR), which grew only 1% year over year, down from 9-10% growth the previous quarter, highlighting decreased transaction activity and advertiser confidence.
The company’s profitability took a hit as GAAP net income fell 66% year over year, and adjusted EBITDA dropped 57%, partly due to heavy investments in quick commerce and AI infrastructure. Free cash flow also plunged 71%, raising concerns over the viability of its business model. In contrast, rivals such as PDD Holdings and Amazon continued to report better revenue growth, with PDD seeing a 12% increase and Amazon achieving 14%. Over the past six months, BABA’s stock has declined by 31.1%, underperforming the broader retail sector.
