Q2 2026 Alibaba Group Holding Ltd Earnings Call Transcript
Key Points
- Alibaba Group Holding Ltd (BABA) reported a 15% year-over-year increase in total revenue, excluding Sun Art and Intime.
- Cloud Intelligence revenue rose by 34%, driven by strong demand for AI and public cloud usage.
- AI-related products posted triple-digit year-over-year growth for the ninth consecutive quarter.
- The Quick Commerce business saw a 60% increase in revenue, with significant improvements in unit economics.
- Alibaba Cloud is gaining market share across multiple segments, including hybrid cloud and financial cloud, and is the leader in China's AI cloud market.
- Total adjusted EBITDA decreased by 78%, primarily due to strategic investments in the Quick Commerce business.
- GAAP net income decreased by 53%, attributed to a decrease in income from operations.
- Operating cash flow decreased by RMB21.3 billion compared to the same quarter last year.
- Free cash flow was an outflow of RMB21.8 billion, reflecting significant investments in Quick Commerce and AI plus Cloud infrastructure.
- The All Other segment revenue decreased by 25%, mainly due to the disposal of Sun Art and Intime businesses.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's September quarter 2025 results conference call. (Operator Instructions)
I would now like to turn the call over to Lydia Lu, Head of Investor Relations of Alibaba Group. Please go ahead.
Thank you. Good day, everyone. Welcome to our September quarter 2025 earnings conference call. With me today from Alibaba are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; Toby Xu, Chief Financial Officer; Jiang Fan, Chief Executive Officer of Alibaba E-commerce Business Group.
I would like to remind you that this call is also being webcast on our copy website. A replay of the call will be available on our website later today. Just a few forward-looking statements before we begin today. Today's discussions may contain forward-looking statements, particularly statements about our business and financial results that are subject to risks and uncertainties, which could cause actual results to differ
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