Ge Long Hui·2025-11-26 06:33Core Viewpoint - Nomura's report indicates that Alibaba's revenue for the second quarter of the fiscal year 2026, ending September, increased by 5% year-on-year, surpassing market consensus by 1% [1] - The adjusted earnings before interest, taxes, and amortization (EBITA) reached 9.1 billion yuan, exceeding Nomura's expectations by 35% [1] - Management highlighted strong ongoing demand for AI cloud services across various industries, contributing to rapid growth in cloud contract backlog [1] Summary by Relevant Sections - Financial Performance - Alibaba's revenue growth of 5% year-on-year for Q2 FY2026 is above market expectations [1] - Adjusted EBITA of 9.1 billion yuan is 35% higher than Nomura's forecast [1] - Market Demand and Outlook - Management observed sustained strong demand for AI cloud services, which supports the rapid growth of cloud contract backlog [1] - Alibaba noted that investment in China's AI sector is struggling to meet strong demand, predicting this supply-demand imbalance may persist for the next three years [1] - Management does not believe there is an investment bubble in China's AI industry [1] - Investment Rating - Based on the optimistic outlook from Alibaba's management, Nomura maintains a "Buy" rating for Alibaba's U.S. stock with a target price of $215 [1]