Alibaba’s fiscal Q4 2026 revenue rose 3% YoY to $35.28B, driven by AI cloud growth and 300M monthly active users for its Qwen LLM.
Alibaba reported fiscal Q4 2026 revenue of $35.28 billion, up 3% year-over-year, as its Alibaba Cloud segment accelerated 38% to $6.04 billion. AI products now account for 30% of external cloud revenue, with 11 consecutive quarters of triple-digit growth in the segment.
Free cash flow turned negative at $2.51 billion, as the company invested $3.90 billion in capex to scale AI and quick commerce. Alibaba holds a 35.8% share of China’s AI cloud market, with its Qwen large language model reaching 300 million monthly active users and over 100,000 Zhenwu AI chips deployed.
The company is prioritizing long-term cloud and AI dominance over near-term profitability, a strategy analysts describe as strategically sound despite mixed headline numbers. A 24/7 Wall St. price target of $157.86 implies 11.9% upside from the current $141.12.