Alibaba-W (09988) opened sharply higher, gaining nearly 8%. As of writing, the stock is up 7.76% to HK$143.1, with a turnover of HK$12.8 billion.
The latest financial results from Alibaba show that for the fourth quarter of fiscal year 2026, revenue reached 243.38 billion yuan, a year-on-year increase of 3%. Net profit was 25.476 billion yuan, a year-on-year increase of 106%.
For the quarter ended March 31, 2026, revenue from the Cloud Intelligence Group was 41.626 billion yuan, a year-on-year increase of 38%. The growth rate of external commercialized revenue accelerated to 40% year-on-year.
This quarter, revenue from AI-related products reached 8.971 billion yuan, marking the 11th consecutive quarter of triple-digit year-on-year growth. For the first time, it accounted for over 30% of external revenue.
During the earnings conference call, Alibaba executives stated they expect AI-related product revenue to exceed 50% within the next year, becoming the primary engine for Alibaba Cloud's revenue growth.
Wu Yongming revealed that currently, almost no server within Alibaba is without a GPU card. He forecasts that the annualized recurring revenue (ARR) for AI model and application services, including the Bailian MaaS platform, will exceed 10 billion yuan in the June quarter and surpass 30 billion yuan by the end of the year.
Furthermore, to meet substantial AI demand, Alibaba announced that future capital expenditure will exceed the originally planned 380 billion yuan.
