Bei Jing Shang Bao·2025-11-25 16:40Core Insights - Alibaba's Q2 FY2026 financial report highlights significant growth in its instant retail and cloud businesses, with instant retail revenue increasing by 60% year-on-year, marking a pivotal shift in the company's growth strategy [1][3] - The company's overall revenue reached 2,477.95 billion yuan, reflecting a 5% year-on-year increase, and a 15% increase when excluding divested businesses [4] Instant Retail Business - Instant retail has emerged as Alibaba's most aggressive growth area, with revenue reaching 22.9 billion yuan in Q2 FY2026, surpassing the growth rate of international e-commerce for the first time [3] - The growth in instant retail is attributed to the launch of Taobao Flash Purchase in April, which significantly boosted order volume [3] - Customer management revenue grew by 10% to 78.93 billion yuan, while wholesale business revenue increased by 13%, contributing to a 16% overall growth in domestic e-commerce revenue [3] International E-commerce Performance - International e-commerce growth has slowed, with revenue growth dropping from 19% in the previous quarter to 10%, totaling 34.8 billion yuan [3] - Despite the revenue fluctuations, international business achieved adjusted EBITA profitability for the first time, turning a loss of 2.9 billion yuan from the previous year into a profit of 1.62 million yuan [3] Cloud Business Stability - Alibaba Cloud revenue grew by 34% to 39.82 billion yuan, driven by strong demand for AI and public cloud services, with AI-related product revenue achieving triple-digit year-on-year growth for nine consecutive quarters [3] Profitability and Investment - The company's operating profit fell by 85% to 5.365 billion yuan due to substantial investments in instant retail and user experience [5] - Sales and marketing expenses increased significantly, rising from 13.7% to 26.8% of total revenue, amounting to 66.5 billion yuan [5] - Cash flow from operating activities decreased by 68% to 10.1 billion yuan [5] Competitive Landscape - The competition among Alibaba, JD.com, and Meituan in the instant retail market has intensified, with all players investing heavily, leading to a general decline in profitability [7] - The focus is shifting from price wars to operational efficiency and ecosystem collaboration, with Alibaba integrating various services to enhance customer experience [7] Long-term Strategy - Experts suggest that despite short-term profit pressures, Alibaba's investments in instant retail and AI technology are strategically aimed at long-term value creation [8] - The integration of instant retail and traditional e-commerce is expected to solidify Alibaba's market leadership, with significant potential for future growth in customer lifetime value [8]