Ge Long Hui·2025-11-27 19:44Core Viewpoint - Alibaba's 2QFY26 total revenue reached 247.8 billion yuan, a year-on-year increase of 4.8%, surpassing both consensus expectations and Huatai's forecast of 2.2% to 2.9% growth, primarily driven by better-than-expected growth in cloud business [1] Group 1: Financial Performance - Adjusted EBITA for Alibaba was 9.1 billion yuan, a year-on-year decline of 77.6%, with an adjusted EBITA margin of 3.7%, which was below the consensus expectation of 5.3% but better than Huatai's forecast of 3.2% [1] - The Chinese e-commerce group's revenue for 2QFY26 increased by 15.5% to 132.6 billion yuan, with CMR growing by 10.1%, mainly due to improved monetization rates [2] - Adjusted EBITA for the Chinese e-commerce group was 10.5 billion yuan, a year-on-year decline of 76.3%, aligning closely with Huatai's expectation of 10.8 billion yuan [2] Group 2: Business Developments - Management indicated ongoing investments in full-stack AI capabilities, with AI and Alibaba's ecosystem creating greater development space, and deepening collaboration across various business lines in the consumer sector [1] - The management noted that since October, the average loss per order in the flash purchase business has halved compared to July-August, with stable order share and improved GMV share due to increased average transaction value [2] - AI-related revenue for Alibaba Cloud grew by 34.5% year-on-year, continuing a trend of acceleration, outperforming the consensus expectation of 28% [2][3] Group 3: Future Outlook - Management expressed confidence in the growth of AI demand, with AI-related revenue accounting for over 20% of external commercial revenue, and AI-related capital expenditures for 2QFY26 were 31.5 billion yuan [3] - The company aims to become a leading full-stack AI service provider in the AI to B sector and is focused on developing AI native applications for consumers in the AI to C sector [3] - Future profit forecasts for Alibaba have been adjusted, with FY26 net profit estimate raised by 10.1% to 105.8 billion yuan, while FY27 and FY28 estimates were lowered due to high base effects in the e-commerce business [3]