Alibaba’s (BABA) Latest Results Highlight Powerful Cloud Momentum and Solid E-Commerce Gains

Core Insights - Alibaba Group Holding Limited (NYSE:BABA) is recognized as a significant player in the AI stock market, with Benchmark reiterating a Buy rating and a price target of $195.00 following its fiscal Q2 2026 results [1] Financial Performance - Alibaba reported a revenue of RMB 248 billion for the second quarter of fiscal 2026, reflecting a year-over-year growth of 5%, surpassing estimates by approximately RMB 3 billion [2][4] - The adjusted EBITDA was RMB 17 billion, which fell short of the consensus expectation of RMB 19 billion, primarily due to ongoing investments in quick commerce [3][4] Segment Performance - The Alibaba China E-commerce Group experienced a robust growth of 16% year-over-year, exceeding expectations [3][4] - The Cloud segment accelerated significantly, achieving a year-over-year growth of 34%, also above market expectations [3][4] - International Digital Commerce grew by 10% year-over-year, while other segments saw a decline of 25% [4]