Alibaba Doubles Net Income as AI and Cloud Push Hits Profitability and Cash Flow

The latest update is out from Alibaba Group Holding Ltd. ( (HK:9988) ).

Alibaba reported results for the March quarter and fiscal year 2026 that underscore its strategic pivot toward artificial intelligence and cloud computing. Management highlighted that full-stack AI investments have moved from incubation to large-scale commercialization, with the Cloud Intelligence Group’s external revenue rising 40% and AI-related products now contributing 30% of that segment’s revenue.

The group’s like-for-like revenue grew 11% year-on-year once disposals are excluded, and China e-commerce customer management revenue rose 8% on a comparable basis, but heavy spending on technology, quick commerce and user experience drove a swing to a small operating loss and an 84% drop in adjusted EBITA. Net income nearly doubled, largely due to mark-to-market gains on equity investments and the absence of prior-year disposal losses, even as non-GAAP net income and free cash flow deteriorated sharply, highlighting the financial trade-off of Alibaba’s aggressive AI + cloud investment strategy for shareholders and other stakeholders.

The most recent analyst rating on (HK:9988) stock is a Buy with a HK$176.00 price target. To see the full list of analyst forecasts on Alibaba Group Holding Ltd. stock, see the HK:9988 Stock Forecast page.

More about Alibaba Group Holding Ltd.

Alibaba Group Holding Ltd. is a China-based technology conglomerate operating primarily in e-commerce, cloud computing, and digital services. The company runs large online marketplaces, a fast-growing cloud infrastructure and AI platform, and related consumer and enterprise services, with listings in both Hong Kong and New York.

Average Trading Volume: 85,716,392

Technical Sentiment Signal: Buy

Current Market Cap: HK$2558.3B

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