Chinese e-commerce giant Alibaba (BABA) is set to report Q2 FY26 earnings on Tuesday, November 25. The stock has jumped over 92% year-to-date, backed by solid financials and improving profitability in its e-commerce division. Also, the company continues to benefit from rising demand for AI and cloud services. Its Q1 FY26 results showed solid momentum, with revenue reaching 247.7 billion yuan ($34.6 billion) and cloud sales climbing 26% year-over-year to 33.4 billion yuan. Given BABA’s solid growth story and strong fundamentals, Wall Street analysts remain positive on the stock ahead of its Q2 results.
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What to Expect from BABA’s Q2 Earnings
Wall Street analysts expect Alibaba to report earnings of $0.85 per share for Q2, down from $2.10 in the same quarter last year. Meanwhile, analysts project Q2 revenues at $34.29 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of over 4%.
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.
AI Analyst Remains Cautious Ahead of Q2 Earnings
Ahead of the print, TipRanks’ AI Analyst Rina Curatex (under the OpenAI-4o model) cut the rating to Neutral from Buy and reduced the price target to $176 from $205. The analysis pointed out both positive and negative factors that may impact the company’s outlook. On the positive side, Alibaba continues to gain from growth in AI and cloud services, which is boosting its position in fast-growing tech areas. Meanwhile, Alibaba’s strategic partnerships, such as its collaboration with SAP, are also expanding its global reach.
However, the analysis also highlighted some challenges. Weak free cash flow, driven by high spending, could limit Alibaba’s flexibility in the near term. The quick-commerce business is still losing money, reflecting strong competition in fast delivery and related services. These issues may keep pressure on margins and slow earnings growth.
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 24.10% upside potential from current levels.
