December Quarter 2025 Results March 19, 2026 Disclaimer On AI + Cloud Businesses, Note: (1) Excluding revenue from the disposed businesses of Sun Art and Intime on a like-for-like basis. This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), including but not limited to adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted ...

Financial Performance - Total revenue increased by 5% year-over-year to RMB 247795 million for the quarter ended September 30, 2025[10] - Income from operations decreased significantly by 85% year-over-year to RMB 5365 million[10] - Adjusted EBITA decreased by 78% year-over-year to RMB 9073 million[10] - Net loss from free cash flow was RMB 21840 million, compared to a positive free cash flow of RMB 13735 million in the same quarter of 2024[10] Segment Performance - Alibaba China E-commerce Group revenue increased by 16% year-over-year[7] - Alibaba International Digital Commerce Group (AIDC) revenue increased by 10% year-over-year[7] - Cloud Intelligence Group revenue increased significantly by 34% year-over-year[7] - All Others segment revenue decreased by 25% year-over-year[25] Business Highlights - Quick commerce revenue increased by 60%, driven by order growth from "Taobao Instant Commerce"[31] - Customer management revenue increased by 10% year-over-year, driven by improved take rate[8] - The company repurchased 17 million ordinary shares (equivalent to approximately 2 million ADSs) for a total of US$253 million[14]

Core Insights - Alibaba Group Holding reported quarterly revenue of $34.57 billion, a 2% year-over-year increase, exceeding the consensus estimate of $34.26 billion [1] - On a like-for-like basis, excluding revenue from divested businesses, revenue growth would have been 10% year-over-year [1] - Adjusted earnings per American Depositary Share (ADS) were $2.06, below the analyst consensus of $2.13 [2] - CEO Eddie Wu highlighted strong growth driven by consumption and AI + Cloud initiatives, with milestones in quick commerce and increased platform engagement [2] - Following the earnings announcement, Alibaba shares rose 1.5% to $137.01 [2] Analyst Ratings and Price Targets - B of A Securities analyst Joyce Ju maintained a Buy rating and raised the price target from $135 to $152 [4] - Mizuho analyst Jason Helfstein maintained an Outperform rating and increased the price target from $149 to $159 [4] - Benchmark analyst Fawne Jiang maintained a Buy rating and raised the price target from $176 to $195 [4]

Financial Performance - Total revenue increased by 2% year-over-year to RMB 247,652 million[11], compared to RMB 243,236 million in the same quarter of the previous year[11] - Net income significantly increased by 76% to RMB 42,382 million[11], compared to RMB 24,022 million in the same quarter of the previous year[11] - Adjusted EBITA decreased by 14% year-over-year to RMB 38,844 million[11], compared to RMB 45,035 million in the same quarter of the previous year[11] - Non-GAAP net income decreased by 18% year-over-year to RMB 33,510 million[11], compared to RMB 40,691 million in the same quarter of the previous year[11] - Free cash flow turned negative, reaching RMB -18,815 million[14], compared to RMB 17,372 million in the same quarter of the previous year[14] Segment Performance - Alibaba China E-commerce Group revenue increased by 10% year-over-year[7] - Alibaba International Digital Commerce Group (AIDC) revenue increased by 19% year-over-year[7] - Cloud Intelligence Group revenue increased by 26% year-over-year[7] - Revenue from All others segment decreased by 28% year-over-year[26] Share Repurchase - The company repurchased 56 million ordinary shares (equivalent to 7 million ADSs) for a total of US$815 million during the quarter[17]

Financial Performance - Total revenue reached RMB2365 billion (US$326 billion), a 7% year-over-year increase[6] - Adjusted EBITA grew by 36% year-over-year to RMB326 billion (US$45 billion)[7] - Net cash position stood at RMB3664 billion (US$505 billion) as of March 31, 2025[7] Share Repurchases and Dividends - The company repurchased 1197 million ordinary shares (equivalent to 150 million ADSs) for US$119 billion in fiscal year 2025, resulting in a 51% net reduction in outstanding shares[12] - A two-part dividend totaling US$025 per ordinary share or US$200 per ADS was approved, with an aggregate amount of approximately US$46 billion[14] Segment Performance - Taobao and Tmall Group's customer management revenue (CMR) increased by 12% year-over-year[10, 31] - Cloud revenue growth accelerated to 18% year-over-year, with AI-related product revenue maintaining triple-digit growth for the seventh consecutive quarter[10, 46] - Alibaba International Digital Commerce (AIDC) experienced a 22% year-over-year revenue increase, driven by strong performance in cross-border businesses[10, 40] - Cainiao Smart Logistics Network Limited's revenue decreased by 12% year-over-year, due to the increasing integration of logistics offerings into e-commerce businesses[54, 55] - Local Services Group's revenue grew by 10% year-over-year, driven by order growth from Amap and Eleme, as well as marketing services revenue growth[59, 60] - Digital Media and Entertainment Group's revenue increased by 12% year-over-year, primarily driven by the movie and entertainment businesses and Youku's advertising revenue[64, 65]