BABA(US:BABA) Sou Hu Cai Jing·2025-08-30 11:01Core Insights - Alibaba Group reported a robust performance for the quarter ending June 30, 2025, with a 10% year-over-year revenue growth when excluding specific divested businesses, and a significant 76% increase in net profit, surpassing market expectations [1][2] Financial Performance - Total revenue for the quarter was RMB 247.65 billion (approximately USD 34.57 billion), with a 10% year-over-year growth when excluding disposed businesses [1] - Net income rose to RMB 42.38 billion, reflecting a 76% increase compared to the previous year [2] - Diluted earnings per share increased by 82% to RMB 2.25 [2] - Operating income decreased by 3% to RMB 34.99 billion, primarily due to a reduction in adjusted EBITA [2] Business Segment Performance - Alibaba Cloud showed remarkable growth with a 26% year-over-year revenue increase, marking a three-year high [1] - AI-related product revenue has seen triple-digit year-over-year growth for eight consecutive quarters [1] - The instant retail business contributed to a 25% year-over-year increase in monthly active consumers on the Taobao app during the first three weeks of August [1] Cash Flow and Investments - Net cash flow from operating activities decreased by 39% to RMB 20.67 billion compared to the same quarter last year [3] - Free cash flow experienced a net outflow of RMB 18.81 billion, contrasting with a net inflow of RMB 17.37 billion in the previous year [3] - Total cash and other liquid investments amounted to RMB 585.66 billion as of June 30, 2025 [3] Strategic Focus - The CEO emphasized the focus on consumer and AI + cloud strategies, which have driven strong growth [3] - The CFO highlighted the double-digit revenue growth in core businesses and significant reductions in losses for the AIDC segment, nearing breakeven [3]