Alibaba’s latest earnings report gave investors two very different numbers to digest, and the market appeared more interested in the one tied to artificial intelligence.
The Chinese e-commerce and cloud giant reported revenue of RMB243.38 billion, or $35.28 billion, for the quarter ended March 31, 2026, up 3% from a year earlier
Alibaba said revenue would have grown 11% on a like-for-like basis after excluding revenue from the disposed Sun Art and Intime businesses. That top-line growth was hardly the standout figure in the report, especially with profitability under pressure. Alibaba reported a loss from operations of RMB848 million, or $123 million, compared with income from operations of RMB28.47 billion in the year-ago quarter.
Adjusted EBITA fell 84% to RMB5.10 billion, with the company pointing to spending on technology businesses, quick commerce and user experiences. Investors, however, appeared willing to look beyond the near-term earnings hit because Alibaba’s cloud and AI business gave them a cleaner growth story. Alibaba’s AI spending hits profit, but cloud growth accelerates Alibaba has been trying to convince investors that its artificial intelligence push can become a growth engine rather than just another expensive tech investment cycle.