BABA-W (09988) released its third-quarter results, with a net profit attributable to shareholders of 16.322 billion yuan, a year-on-year decrease of 67%. Revenue from Alibaba Cloud saw strong growth of 36%.

BABA-W (09988) released its third quarter performance for the three months ending on December 31, 2025. The revenue was 2848.43 billion yuan (same unit below), an increase of 2% year-on-year; operating profit was 10.645 billion yuan, a decrease of 74% year-on-year; net profit attributable to ordinary shareholders was 16.322 billion yuan, a decrease of 67% year-on-year; diluted earnings per American depositary share were 5.93 yuan. Alibaba Group CEO Wu Yongming said, "This quarter, Alibaba continued to invest in AI and consumer core areas. AI is one of our main growth engines. Alibaba Cloud revenue grew strongly by 36%, with AI-related product revenue achieving triple-digit growth for the tenth consecutive quarter. At the same time, our MaaS platform business also showed high-speed growth, creating a new engine for cloud growth. On the other hand, the integration of the Q&A app and various applications in the Alibaba consumer ecosystem is accelerating, significantly driving new user engagement. The MAU of Q&A has exceeded 300 million, entering the era of AI intelligent management. In the future, relying on the full-stack AI capabilities of 'large models + cloud + chips,' as well as the comprehensive integration with the Alibaba business ecosystem, we will continue to focus on both AI to B and to C directions." Alibaba Group CFO Xu Hong said, "The rapid growth of AI+ cloud in the past few quarters has given us more confidence to increase investment and consolidate our full-stack AI technological advantage. In terms of consumer business, while expanding the scale of instant retailing, UE continues to improve. The group's strong financial reserves and robust cash generation capabilities will provide solid support for our continued strategic investments." Consumer Business This quarter, we continued to advance our strategic layout, further expand the scale of instant retailing business, enhance user experience, optimize operational efficiency, and increase the expansion of high-unit-price catering and non-food categories. This quarter, thanks to the improvement in fulfilment logistics efficiency, order structure improvement, and high customer retention rate, the unit economic benefits and unit price of instant retailing business continued to improve month-on-month. This quarter, we re-branded the "Ele.me" brand to "Taobao Flash Purchase," closely aligning it with the Taobao app and strengthening our brand image. In addition, Taobao Flash Purchase was integrated into the Q&A app on January 15, 2026, to further expand its consumer base and better meet users' diversified needs. This quarter, customer management revenue increased by 1% year-on-year to 102.664 billion yuan (14.681 billion US dollars), with growth slowing mainly due to a slowdown in transactions and the decline in basic software service fees. This quarter, user brand awareness of instant retailing business continued to rise, with scale continuing to grow, driving a double-digit year-on-year increase in monthly active consumers on the Taobao app. 88VIP members are our highest-spending consumer group, with their number continuing to grow by double digits year-on-year, surpassing 59 million. For our most important customers, we will continue to focus on improving the retention of 88VIP members by enhancing their value proposition. As of the quarter ending on December 31, 2025, Alibaba International Digital Commerce Group (AIDC) narrowed its losses year-on-year, mainly due to the improvement in logistics optimization and investment efficiency. The unit economic benefits of the AliExpress Choice business continued to improve month-on-month. AI+ Cloud Business As of the quarter ending on December 31, 2025, revenue of Alibaba Cloud Intelligence Group was 43.284 billion yuan (6.19 billion US dollars). Total revenue and revenue excluding Alibaba's consolidation business accelerated year-on-year growth to 36% and 35% respectively. This growth momentum was mainly driven by the growth in public cloud revenue, including the increase in AI-related product adoption. AI-related product revenue maintained strong momentum, achieving triple-digit year-on-year growth for the tenth consecutive quarter. Alibaba Cloud continues to lead the market, attracting more customers to adopt our comprehensive AI+ cloud products and services, including high-performance networking, distributed storage, cloud operating systems, and model training and inference services. In Gartner's "2025 Magic Quadrant for Cloud Database Management Systems," Alibaba Cloud was rated a leader for the sixth consecutive year. In Gartner's "Emerging Markets Quadrant for Generative AI Technologies" report, Alibaba Cloud was once again rated as an emerging leader in all four assessment categories, making it the only cloud service provider in the Asia-Pacific region to receive this accolade. Our enterprise-level large model portfolio, the Q&A model family, continues to drive rapid AI deployment in important verticals such as intelligent manufacturing, financial services, consumer retail, and cloud-native development, achieving quantifiable productivity gains through its full-stack, multimodal capabilities. With top-tier AI base models, large-scale real-world deployment, and clear technological leadership advantages, our Q&A models are rapidly expanding in both technological innovation and application popularity. With the state-of-the-art QWen3.5 base model, our C-end flagship AI application, the Q&A app, has become an important milestone in our AI strategy: translating the leading capabilities of self-developed models into real-world applications that can be scaled up. On January 15, 2026, we announced a major upgrade to the Q&A app, achieving deep integration with Alibaba's ecosystem businesses such as Taobao Tmall, Taobao Flash Purchase, Gaode, Fliggy, and Alipay. The Q&A app can provide cross-platform intelligent scheduling services, becoming China's first AI assistant with the ability to execute complex tasks on a large scale in the real world. This marks a new stage in AI industry from chat-based interaction to task execution. This ecosystem-level integration further expands user reach, enhances user stickiness across various Alibaba platforms, and solidifies our leading edge in applying AI. Since the start of the Spring Festival promotion on February 6, the activity of Q&A app users has significantly increased. By the end of February, nearly 140 million users had experienced AI shopping through the Q&A app's intelligent body function for the first time, covering multiple areas such as catering, daily necessities, ticketing services, and travel bookings. In February, the monthly active users of Q&A C-end applications exceeded 300 million.