Alibaba’s e-commerce business remains its key strength, generating RMB 93.2 billion ($12.9 billion) in revenue in Q4 FY2025, up 4% year-over-year and representing 47% of total revenues. International commerce, including platforms like AliExpress and Lazada, surged by 45% year-over-year, yielding RMB 27.4 billion ($3.8 billion), highlighting strong demand for cross-border shopping.
As Alibaba enhances its e-commerce offerings, it faces increasing competition from JD.com and PDD Holdings Inc.. JD.com reported a 16.3% increase in Q1 FY2025 revenues, bolstered by its “export to domestic” program, while PDD Holdings achieved a 15% rise in online marketing services revenues during the same period. Alibaba’s stock has gained 34.4% year-to-date, significantly outperforming the Zacks Internet – Commerce industry growth of 5.7%.
The consensus estimate for Alibaba’s first-quarter fiscal 2026 earnings is $2.48 per share, reflecting a 9.73% year-over-year growth, while forecasts indicate a total of $10.47 per share for fiscal 2026, marking a 16.2% increase.
