Chinese e-commerce giant Alibaba (BABA) will report Q2 FY26 earnings on Tuesday, November 25. The stock is up more than 93% year-to-date, supported by stronger financials and improving profitability in its core e-commerce business. The company is also seeing growing demand for its AI and cloud services, which continues to lift investor sentiment. Wall Street analysts expect Alibaba to report earnings of $0.85 per share for Q2. Meanwhile, analysts project revenues at $34.30 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of over 4%.
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Analysts’ Views on BABA Ahead of Q2 Results
Ahead of Alibaba’s Q2 results, analysts remain optimistic about the company’s AI potential. One such analyst is Wei Fang of Mizuho Securities who recently raised his price target to $195 from $159, implying a 27% upside from current levels. He maintained a Buy rating on BABA stock, citing improving trends in commerce, steady progress in cloud, and better execution.
Fang said recent checks show improvement in Alibaba’s core business. He noted that order activity and customer spending have picked up, helped by stronger engagement in food delivery and in-store services. He also pointed to progress in the cloud unit. He said demand tied to AI use cases is rising, and Alibaba is seeing more interest from banks, developers, and enterprise clients.
Similarly, Citi remains constructive on Alibaba ahead of earnings and sees recent weakness as temporary. The firm reiterated its Buy rating and kept a $218 price target, citing the long-term outlook remains solid. Citi believes the company continues to execute well and expects sentiment to improve as results show progress in core commerce, cloud, and AI initiatives.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.21% move in either direction.
Is BABA a Good Stock to Buy Now?
Analysts remain bullish about Alibaba’s stock trajectory. With 19 Buy ratings and two Hold ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $198.21 implies about 29.61% upside potential from current levels.
