Businesswire·2026-03-19 09:30Core Insights - Alibaba Group reported its financial results for the quarter ended December 31, 2025, highlighting a significant decrease in net income and cash flow, primarily due to investments in quick commerce and technology [1][4][81]. Financial Performance - Revenue for the quarter was RMB 284,843 million (US$ 40,732 million), a 2% increase year-over-year, with a like-for-like growth of 9% excluding disposed businesses [5][30]. - Net income attributable to ordinary shareholders was RMB 16,322 million (US$ 2,334 million), a decrease of 67% compared to RMB 48,945 million in the same quarter of 2024 [4][77]. - Free cash flow decreased by 71% to RMB 11,346 million (US$ 1,622 million) from RMB 39,020 million in the same quarter of 2024, mainly due to investments in quick commerce [4][81]. Segment Performance Alibaba China E-commerce Group - Revenue from the e-commerce business was RMB 131,583 million (US$ 18,816 million), a 1% increase year-over-year [42]. - Quick commerce revenue surged by 56% to RMB 20,842 million (US$ 2,980 million), driven by order growth from the rollout of "Taobao Instant Commerce" [45]. Alibaba International Digital Commerce Group - Revenue from international commerce retail was RMB 32,351 million (US$ 4,626 million), a 3% increase year-over-year [46]. - The international commerce wholesale business revenue increased by 10% to RMB 6,850 million (US$ 980 million) [46]. Cloud Intelligence Group - Revenue from the Cloud Intelligence Group reached RMB 43,284 million (US$ 6,190 million), marking a 36% year-over-year growth [13][48]. - AI-related product revenue continued to show strong momentum, achieving triple-digit growth for the tenth consecutive quarter [2][13]. Strategic Initiatives - The company is focusing on enhancing its AI capabilities and integrating them into its consumer ecosystem, with the Qwen app surpassing 300 million monthly active users [2][24]. - Alibaba rebranded "Ele.me" to "Taobao Instant Commerce" to align with its broader e-commerce strategy and improve user experience [8][10]. Investment and Cash Flow - As of December 31, 2025, cash and liquid investments totaled RMB 560,175 million (US$ 80,104 million), a decrease from RMB 597,132 million as of March 31, 2025 [80]. - Net cash used in investing activities was RMB 25,716 million (US$ 3,677 million), primarily reflecting capital expenditures [82]. Employee Metrics - The total number of employees as of December 31, 2025, was 128,197, an increase from 126,661 as of September 30, 2025 [84].