Alibaba (child – Free report) reported earnings without GAAP in the amount of USD 1.73 for advertising in the fourth quarter of the 2025 tax year, which overcame Zacks’s respect by 16.89%. In the national currency, the company reported earnings of 12.52 RMB, which is an escalate of 23% year on year.
The company published revenues from the tax year in the fourth quarter of $ 32.6 billion. The upper line did not miss the estimation of Zacks consensus by 1.49%. In the national currency, revenues of 236.5 billion RMB increased by 7% year on year.
The highest growth was caused by the sturdy results of the main national e-commerce segment, Taobao and Tmall Group. In addition, a significant contribution resulted from the further expansion of the cloud intelligence group and solid growth in international digital trade, which played a key role in increasing general revenues up.
After releasing, Baby shares increased by 1.65% in trade in front of the brand. Until now, Baby’s actions have jumped by 46.2%, significantly exceeding the retail and wholesale Zacks 2.4% in the same period.
Alibaba Group with a constrained price, consensus and EPS surprise
Baby’s earnings beat Zacks consensus twice and missed the other two, the surprise was on average 2.47%. (See the calendar of Zacks earnings to overtake messages on the market.)
SEGMENTS revenues
Taobao and Tmall Group (42.9% of total revenues): Alibaba generated 101.37 billion RMB (USD 14.0 billion) of the segment revenues, which increased by 9% compared to the quarter of last year. Customer management revenues increased by 12% year on year to 71.08 billion RMB (USD 9.8 billion), driven primarily from a better rate. This improvement was supported by introducing fees for software services and the growing party of Quanzhanta, a comprehensive Alibaba marketing solution, which helped escalate the efficiency of monetization all over the platform.
The number of 88 VIP members, the preferably taking place Baby consumer group, continued to escalate from year to year in double digits to 50 million in this quarter. The company will continue to develop a subscription to 88 VIP membership, providing attractive benefits and premium services.
China Commerce retail (94.3% of Taobao and TMALL revenues): Business Vertical revenues amounted to USD 95.6 billion (USD 13.2 billion), which reflects an escalate in 8% compared to the quarter of the year. The escalate was assigned to customer management revenues, which increased by 12% year on year to 71.08 billion RMB (USD 9.9 billion), powered by an improvement in the acceptance rate for year on year, partly compensated by a decrease in direct revenues from sales as a result of a planned company by some direct sellers.
Chinese wholesale trade (5.7% of Taobao and TMALL revenues): The company generated revenues of 5.8 billion RMB (USD 798 million), which increased by 17% during the year. This escalate was attributed to the growing revenues from services with added value.
Alibaba International Digital Commerce Group (14.2% of total revenues): The segment includes Lazada, Alixpress, Trendyol and other companies operating on international retail and wholesale markets. Baba generated 33.6 billion RMB ($ 4.63 billion) from the segment, which increased by 22% compared to the quarter of the year, primarily driven by sturdy results of cross -border companies.
International retail trade (82.2% of international revenues): revenues amounted to 27.6 billion RMB ($ 3.80 billion), which is an escalate of 24% compared to the quarter of the year, driven by an escalate in revenues brought by the selection and trend of Aliexpress.
Wholesale international trade (17.8% of international revenues): Business generated revenues of 6 billion RMB (USD 823 million), which increased by 16% per year a year due to an escalate in revenues generated by services with a value added by cross -border related to values.
Local Services Group (6.8% of total revenues): revenues from the segment earned 16.1 billion RMB (USD 2.22 billion), which is an escalate of 10% compared to the quarter of the year. The growth was caused by a sturdy escalate in order in ELE.ME and AMAP companies, as well as higher revenues from marketing services.
Cainiao Smart Logistics Network (9.1% of total revenues): revenues amounted to USD 21.6 billion (USD 2.97 billion), which is a 12% decrease compared to the quarter of the year. This decrease was primarily attributed to reduced revenues from domestic logistics services, as a result of the fact that e-commerce companies adopted a logistics platform.
Cloud Intelligence Group (12.7% of total revenues): the segment generated revenues of 30.1 billion RMB (USD 4.15 billion), which is an escalate of 18% compared to the quarter of the year. In the quarter, general revenues, with the exception of subsidiaries from Alibaba, achieved a double -digit escalate by 17%year -on -year. The shoot was primarily an accelerated escalate in public cloud revenues, including the growing reception of products and services related to AI.
In April, Alibaba introduced hybrid models of Qwen3-hybrid reasoning of recent generation, which combine quick answers with advanced options for thoughts. The composition contains two models of expert mix (MOE) and six dense models. All QWEN3 models have been fully open on platforms such as Modryscope and Hulging Face to promote wide adoption and innovation.
Digital Media and Entertainment Group (2.3% of total revenues): revenues amounted to 5.6 billion RMB (USD 765 million), which is an escalate of 12% compared to the quarter of the year. The growth was mainly caused by the sturdy performance of the Alicaba Pictures film and entertainment segment.
All others (22.8% of total revenues): The income from the segment amounted to RMB 54 billion (USD 7.44 billion), which reflects the escalate of 5% year on year. This rally was driven primarily with contributions by higher revenues from Freshippo and Alibaba Health, partly compensated by the decrease in revenues from Sun Art after its sale and deconsolidation in February 2025.
Operating details
In the fourth tax quarter, expenses for sale and marketing amounted to 36.2 billion RMB (USD 4.99 billion), which is an escalate of 25.5% compared to the quarter of the year. As a percentage of total revenues, this number extended 230 base points (BPS) to 15.3%.
General and administrative costs amounted to USD 10.3 billion (USD 1.42 billion), which is a decrease of 26.3% compared to the quarter of the year. As a percentage of total revenues, this number included 190 BPS year on year to 4.4%.
Product development costs amounted to 14.9 billion RMB (USD 2.06 billion), which is an escalate of 6% year on year. As a percentage of total revenues, this number remained flat year on year.
The operating income was 28.5 billion RMB (USD 3.92 billion), which is an escalate of 92.8% year -on -year due to an escalate in theoretical assets and an adjusted EBITA growth. The operational margin increased 540 BPS to 12%.
The corrected EBITDA increased by 36% from last year to 32.6 billion RMB (USD 4.5 billion). The corrected EBITDA margin has increased 300 BPS to 14%.
Balance and cash flow
As at March 31, 2025, Equivivalents of cash and cash amounted to $ 20 billion (145.49 billion RMB), compared to USD 22.3.3 billion (USD 162.78 billion) as at December 31, 2024.
Short -term investments amounted to $ 31.5 billion (228.83 billion RMB) at the end of the fourth quarter of the 2025 tax year, compared to USD 32.5 billion (USD 236.95 billion) in the previous quarter.
Alibaba generated USD 3.8 billion (27.52 billion RMB) in cash from operations, compared to USD 9.7 billion (70.92 billion RMB) in the previous quarter.
Baby’s free cash flows amounted to $ 516 million ($ 3.74 billion).
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