Alibaba’s revenues up and profit down

Hong Kong, 19th March: Last week, the Alibaba Group, the largest e-commerce company in China, released its results for the quarter ended 31st December 2025. The company posted total revenues of US$41 billion in the quarter, up 2% year-on-year.

However, the net income dropped 66% year-on-year, down to US$2.2 billion. The company attributed the decrease to the investment in quick commerce, user experiences, and technology.

In terms of B2B business, revenues from Alibaba’s China commerce wholesale under the Alibaba China E-commerce Group, primarily generated through 1688.com, were US$990 million, a year-on-year increase of 5%. Meanwhile, the International commerce wholesale business under the Alibaba International Digital Commerce Group, primarily operating through Alibaba.com, generated revenues of US$980 million, a 10% increase over the previous year. B2B revenues accounted for only 4.8% of the group’s total revenues in the quarter.

Alibaba also announced its results for the nine months ended 31st December. Revenues in the nine-month period were US$116 billion, an increase of 2.7% year-on-year. Net income decreased by 31% in the period, amounting at US$11 billion. Diluted earnings per share in the first nine months of the financial year were RMB 4.18 (US$0.60).

Eddie Wu, Chief Executive Officer of Alibaba Group, said, “This quarter, Alibaba maintained strong investments across our core pillars of AI and consumption. AI is and will continue to be one of our primary growth engines. Our Cloud Intelligence Group’s revenue is up 36% with AI-related product revenue delivering triple-digit growth for the tenth consecutive quarter. Our Model-as-a-Service (MaaS) platform is showing strong growth, emerging as a new engine driving cloud business growth. On the consumer side, we have integrated use cases across our consumer ecosystem into Qwen app, which generated significant new users and transactions. Qwen’s consumer interface surpassed 300 million monthly active users, as AI agents perform real-world task execution at scale. Looking ahead, we are well-positioned to drive growth on both enterprise AI and consumer AI fronts, powered by our fullstack AI capabilities spanning foundation models, cloud infrastructure, and proprietary chips, alongside deep integration with our broader ecosystem.”