Chinese e-commerce giant Alibaba (BABA) is set to announce its Q2 FY26 earnings on Tuesday, November 25, and the options market is expecting a volatile reaction. Based on options pricing, traders are expecting a 7.21% move in either direction, following the results. This is slightly lower than Alibaba’s average post-earnings move (in absolute terms) of 7.69% over the past four quarters.
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This quarter investors will be more focused on whether Alibaba can show credible progress in its cloud, AI services, and emerging consumer-AI products. Meanwhile, its main e-commerce business continues to feel pressure from soft consumer spending, pricing cuts, and rising competition in China’s online retail space.
With these challenges in play, investors will be watching to see if growth in cloud and AI can start to offset the slowdown in its core business.
What Is Wall Street Expecting from BABA’ Q2 Earnings?
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%.
Notably, the company has missed earnings estimates thrice out of the previous nine quarters.
Ahead of Alibaba’s Q2 results, analysts remain upbeat about the company’s AI plans. Wei Fang of Mizuho Securities recently raised his price target on the stock to $195 from $159, which suggests about 27% upside from current levels. Fang kept a Buy rating and pointed to steady progress in cloud, improving trends in commerce, and better overall execution.
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.
