BABA(HK:09988) Sou Hu Cai Jing·2025-11-25 18:11Core Viewpoint - Alibaba's Q2 FY2026 results show a revenue increase of 5% year-on-year, driven by significant growth in cloud services and AI-related products, despite a notable decline in net profit due to heavy investments in these areas [1][4][10]. Financial Performance - Total revenue for the quarter reached 247.8 billion RMB, with a 5% year-on-year growth. Excluding disposed businesses, the revenue growth was 15% [1][2]. - Net profit decreased by 53% year-on-year to 20.61 billion RMB, while adjusted EBITA fell by 78% [2][4]. - Operating cash flow was 10.1 billion RMB, down 68% from the previous year, indicating significant cash outflow due to investments [8][9]. Business Segments - Cloud Intelligence Group revenue grew by 34% year-on-year to 39.82 billion RMB, primarily driven by public cloud services [7]. - Instant retail business revenue surged by 60% year-on-year to 22.91 billion RMB, attributed to the launch of "Taobao Flash Purchase" [6][10]. - Customer management revenue increased by 10% to 78.93 billion RMB, supported by improved take rates [5][6]. Investment Strategy - Alibaba's CFO indicated that the company is focusing on long-term growth by investing heavily in AI and cloud infrastructure, with approximately 120 billion RMB spent over the past four quarters [4][10]. - The company plans to maintain high investment levels in AI and cloud services, with a potential increase in the previously announced 380 billion RMB investment over three years [10][11]. AI and Future Outlook - Alibaba is pursuing both AI to B and AI to C strategies, aiming to become a leading full-stack AI service provider [11][14]. - The integration of AI into Alibaba's ecosystem is expected to enhance operational efficiency and drive future growth, although current monetization of AI remains limited [14][15]. - The company is committed to leveraging AI to improve customer engagement and operational capabilities across its platforms [14][16].