BABA(HK:09988) Mei Ri Jing Ji Xin Wen·2025-11-26 14:17Core Insights - Alibaba reported a revenue of 247.795 billion yuan for Q2 of FY2026, marking a 5% year-on-year increase, with a 15% increase when excluding disposed businesses [2] - Alibaba Cloud revenue grew by 34% year-on-year, while AI-related product revenue has seen triple-digit growth for nine consecutive quarters [2][4] - The company’s net profit for the quarter was 20.612 billion yuan, a 53% decline year-on-year, primarily due to significant investments in AI and instant retail [3] Revenue and Growth - Total revenue for Q2 FY2026 was 247.795 billion yuan, with a 5% year-on-year growth; on a same-store basis, revenue grew by 15% [2] - Instant retail revenue reached 22.906 billion yuan, a 60% increase compared to the same period in 2024, driven by the launch of "Taobao Flash Purchase" [4] - Customer management revenue increased by 10% to 78.927 billion yuan, attributed to improved take rates [3][4] Profitability and Investments - Net profit decreased by 53% to 20.612 billion yuan, while adjusted EBITA fell by 78% due to investments in instant retail and technology [3] - Free cash flow showed a net outflow of 21.840 billion yuan, compared to a net inflow of 13.735 billion yuan in the same quarter last year [6] - The company has invested approximately 120 billion yuan in AI and cloud infrastructure over the past four quarters [3][8] Strategic Focus - Alibaba is focusing on building AI technology and infrastructure, with a planned investment of 380 billion yuan over the next three years [8][9] - The company aims to enhance its AI capabilities in both B2B and B2C sectors, leveraging its ecosystem for greater synergy [10][11] - The management indicated that the current quarter represents a peak in investment for Taobao Flash Purchase, with expectations of reduced spending in the following quarters [7] Future Outlook - Alibaba's future strategy is deeply intertwined with AI, with expectations of increasing demand for AI capabilities over the next three years [12] - The company is also integrating various business units to enhance collaboration and market share in the consumer sector [12] - The management emphasizes that the current investment strategy is about securing long-term competitive advantages rather than immediate profitability [12]