3 6 Ke·2025-11-26 00:22Core Insights - Alibaba's Q2 FY26 results show a mixed performance with significant losses in the food delivery segment and strong growth in cloud services, particularly driven by AI [1][2][10] Group 1: E-commerce Performance - The core metric CMR for Alibaba's e-commerce business grew by 10.1% year-on-year, indicating stable performance despite a challenging environment [1][26] - The food delivery segment incurred losses of approximately 360 billion, aligning with the company's prior guidance, but still significantly impacting overall profitability [1][30] - The company has communicated a strategy to improve unit economics in the food delivery segment, with recent data showing a reduction in losses [2][10] Group 2: Cloud Business - Alibaba Cloud's revenue grew by 34.5%, exceeding market expectations and reflecting a significant acceleration compared to previous quarters [2][31] - The profit margin for Alibaba Cloud remained stable at 9%, indicating that the increase in AI-related business did not negatively impact profitability [2][31] - The company is expected to continue investing heavily in cloud infrastructure, with capital expenditures reaching 314 billion this quarter [2][31] Group 3: International E-commerce - The international e-commerce segment achieved a turnaround, reporting a positive adj. EBITA of 1.6 billion, despite a slowdown in revenue growth to around 10% [3][35] - The focus remains on profitability over scale, with a shift towards more refined operations in response to external challenges [3][35] Group 4: Other Business Segments - Other business segments, including logistics and entertainment, saw a significant revenue decline of 25% year-on-year, primarily due to the divestment of certain retail operations [3][38] - Losses in these segments increased to nearly 34 billion, reflecting ongoing investments in new initiatives [3][38] Group 5: Overall Financial Performance - Total revenue for the quarter was approximately 247.8 billion, representing a 5% year-on-year increase, or 15% when excluding divested operations [3][39] - Adjusted EBITA decreased by about 77% to 9.4 billion, although this was better than market expectations [3][42] - Marketing expenses rose significantly to 66 billion, driven by increased promotional activities and delivery costs [3][42]