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August 29, 2025
BABA Stock Earnings: Alibaba delivered earnings that topped expectations in the June quarter. The boost came from faster growth in its cloud division and a steady recovery in online retail.
Even so, revenue missed Wall Street’s targets. After an early dip, the company’s U.S. premarket shares rose by more than 1%.
Alibaba’s fiscal first-quarter results for June showed mixed performance against LSEG estimates. Revenue came in at 247.65 billion yuan ($34.6 billion), falling short of the expected 252.9 billion yuan.
Net income, however, surged to 43.11 billion yuan, far above the forecast of 28.5 billion yuan. Every year, revenue edged up 2%, while profit soared 78%.
The sharp increase in earnings was driven by investment gains and the sale of Turkish e-commerce platform Trendyol. A drop in operating income partly weighed on the results.
Cloud Business Picks Up Pace
Alibaba announced that its cloud division brought in 33.4 billion yuan in revenue, a 26% jump from a year earlier. The pace was much faster than the 18% growth recorded in the previous quarter.
The cloud arm is seen as a key driver in turning artificial intelligence into profit, much like Microsoft and Google have done.
“AI demand has been a major growth engine for our Cloud Intelligence Group,” CEO Eddie Wu said. “Revenue from AI products now represents a meaningful share of sales to external clients.”
Alibaba’s growing push into artificial intelligence has caught investors’ attention, with the company now standing as a significant global player.
It has introduced a range of AI models and delivers many of its services through the cloud division. Much of its focus has been on open-source AI, giving developers free access to use and expand on its technology.
Alongside this, Alibaba also earns revenue by offering paid AI services through its cloud platform.
Alibaba reported that revenue from AI-related products grew at triple-digit levels for the eighth straight quarter. Adjusted EBITA, a key measure of profitability, rose 26% year over year in the cloud division.
Alibaba’s New York–listed shares have jumped over 40% so far this year. The rebound has been fueled by stronger growth in its core e-commerce business in China and faster gains in its cloud arm.
Even so, the company continues to navigate a cooling Chinese economy, which lost steam in July. Earlier in the year, Beijing rolled out policies to encourage more consumer spending.
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