Alibaba Group (BABA) investor relations material

Executive summary

• Revenue for the March quarter 2026 rose 3% year-over-year to RMB243.4 billion, with like-for-like growth of 11% excluding disposed businesses.

• Net income for the quarter was RMB23.5 billion, up 96% year-over-year, driven by mark-to-market gains on equity investments and disposal losses in the prior year.

• Cloud Intelligence Group revenue surged 38% year-over-year, with external revenue up 40% and AI-related product revenue achieving triple-digit growth for the eleventh consecutive quarter.

• Adjusted EBITA for the quarter dropped 84% year-over-year to RMB5,102 million, reflecting increased investments in technology, quick commerce, and user experience.

• Quick commerce revenue increased 57% year-over-year, with significant unit economics improvement and order volume up 2.7x.

Financial highlights

• Total revenue for the twelve months ended March 31, 2026, was RMB1,023,670 million, up 3% year-over-year, with like-for-like growth of 11%.

• Fiscal year net income was RMB102,127 million, down 19% year-over-year; non-GAAP net income dropped 62% to RMB60,658 million.

• Adjusted EBITA for the twelve months declined 56% to RMB76,416 million; adjusted EBITDA dropped 44% to RMB113,483 million.

• Free cash flow for the twelve months was an outflow of RMB46,609 million, down from RMB116,900 million the prior year.

• Cash and liquid investments as of March 31, 2026, stood at RMB520,824 million.

Outlook and guidance

• AI-related product revenue is expected to exceed 50% of Cloud Intelligence Group's external revenue within a year.

• Model and application services ARR projected to surpass RMB10 billion in the June quarter and RMB30 billion by year-end.

• Quick commerce business expected to achieve positive unit economics by end of fiscal year 2027.

• Management remains committed to significant AI and consumption investments for long-term growth.

• Forward-looking statements emphasize risks from competition, economic conditions, and strategic investments.