Di Yi Cai Jing·2025-08-29 11:44Core Insights - Alibaba Group reported Q1 FY2026 financial results, showing a revenue of 247.65 billion RMB, a 2% year-over-year increase, and a 10% increase when excluding divested businesses [2] - Operating profit decreased by 3% to 34.99 billion RMB, with adjusted EBITA down 14%, primarily due to increased investments in Taobao Flash Sale and user experience [2] - The company restructured its business segments, integrating Ele.me and Fliggy into Alibaba's China e-commerce group, with Taobao Flash Sale and Ele.me moving into the instant retail segment [2] Financial Performance - Free cash flow showed a net outflow of 18.82 billion RMB, contrasting with a net inflow of 17.37 billion RMB in the same period last year, resulting in a 36.19 billion RMB difference [3] - Sales and marketing expenses reached 53.18 billion RMB, accounting for 21.5% of revenue, up from 13.4% in the previous year, driven by investments in Taobao Flash Sale and customer acquisition [4] - Instant retail revenue was 14.78 billion RMB, a 12% year-over-year increase, attributed to the growth in order volume from Taobao Flash Sale [4] Business Segment Highlights - Alibaba Cloud revenue grew by 26%, marking a three-year high, with AI-related revenue experiencing triple-digit growth for eight consecutive quarters [5] - The international digital commerce group saw a 19% revenue increase, with adjusted EBITA losses narrowing significantly to 59 million RMB from a loss of 3.706 billion RMB in the previous year [5] - Employee count decreased to 123,711 as of June 30, 2025, down from 124,320 in the previous quarter [5]