Alibaba’s Financial Performance and Growth Plans
Alibaba Group (NYSE: BABA) has seen a 46% increase in its stock over the past year, supported by its cash-generating e-commerce business, which accounted for $62 billion in revenue in fiscal 2025—making up 45% of the company’s total $137 billion. The company’s adjusted EBITA reached $23.8 billion, largely driven by its Taobao and Tmall platforms.
The company is set to report its first quarter results for fiscal 2026 next week, with analysts projecting continued single-digit revenue growth for its international e-commerce business, which constitutes only 13% of its overall revenue. Alibaba trades at 14 times this fiscal year’s earnings and less than 11 times next year’s projections, supporting its potential for market outperformance despite recent challenges.
Management plans to invest $7 billion in its food delivery business and has conducted share buybacks for eight consecutive quarters. Additionally, Alibaba is pivoting by spinning off its autonomous-driving technology, suggesting a strategic focus on its most profitable segments while still exploring new opportunities.
