Key Points
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Alibaba reported mixed results in its fiscal third-quarter earnings for 2025, with rising expenses affecting profitability.
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Revenue for cloud computing grew 36% to $6.1 billion, while overall revenue rose 2% to $40.7 billion.
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Shares fell nearly 15% year-to-date following the earnings report.
Alibaba Group (NYSE: BABA) announced its fiscal third-quarter results for the period ending December 31, 2025, revealing a 2% increase in overall revenue to $40.7 billion. However, adjusted EBITDA plummeted 45% to $4.9 billion, and adjusted earnings per American depositary share fell 67% to $1.01. The company’s cloud computing segment reported strong growth, notably a 36% increase in revenue driven by AI products, but e-commerce operations faced challenges amidst a competitive landscape.
As Alibaba invests in AI infrastructure and quick commerce, its e-commerce revenue saw a modest 6% rise to $22.8 billion, driven by a 56% jump in quick-commerce revenue. Despite these gains, the company’s stock has experienced a decline of nearly 15% year-to-date, highlighting the struggles in its larger e-commerce business against a demanding market environment.
