Alibaba revenue misses estimates in December quarter as net income drops 66%
chinese language tech large Alibaba on Thursday reported net income had dropped 66% year-over-year, as it missed analyst revenue expectations.
Here’s how Alibaba carried out its fiscal quarter, ending Dec. 31, 2025:
- Revenue: 284.8 billion Chinese yuan ($41.4 billion), in comparison with the 290.7 billion Chinese yuan anticipated by analysts, in line with knowledge compiled by LSEG.
- Net income: 15.6 billion Chinese yuan in comparison with 46.4 billion Chinese yuan in the identical interval a yr in the past.
Alibaba’s US-listed shares dropped 4% in premarket buying and selling on Thursday.
The tech large famous that the net income lower was primarily because of the 74% year-on-year drop in operational income which was impacted by investments in fast commerce, consumer experiences and know-how.
Alibaba is one among a number of Chinese AI companies which have been rushing to catch up to US companies in the AI race.
“This quarter, Alibaba maintained strong investments across our core pillars of AI and consumption,” Alibaba CEO Eddie Wu, stated in an announcement.
“AI is and will continue to be one of our primary growth engines. Our Cloud Intelligence Group’s revenue is up 36% with AI-related product revenue delivering triple-digit growth for the tenth consecutive quarter.”
Revenue from Alibaba’s cloud enterprise was 43.3 billion Chinese yuan. “This momentum was primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products,” the corporate stated.
It’s pledged tens of billions of dollars in investments in AI and cloud infrastructure, as it appears to transition from being simply an e-commerce large to an AI chief.
In January, the tech large introduced a new AI model seriesand has additionally been investing in ‘agent commerce’ as it appears to show chatbots into full-service buying and fee instruments.
