BABA-W (09988) announced its second-quarter results for the three months ended September 30, 2025. The group reported total revenue of RMB247.795 billion, marking a 5% year-on-year increase. Net profit attributable to ordinary shareholders was RMB20.99 billion, down 52% YoY, with basic earnings per share at RMB1.13.
For the first half of 2025, the group's total revenue reached RMB495.447 billion, up 3.27% YoY, while net profit attributable to ordinary shareholders declined 5.92% YoY to RMB64.106 billion, with basic EPS at RMB3.45.
Excluding non-cash share-based compensation, investment gains/losses, goodwill and intangible asset impairments, and other items, non-GAAP net profit for Q2 was RMB10.352 billion—a 72% drop from RMB36.518 billion in the same period last year. This was primarily due to investments in instant retail, user experience, and technology, partially offset by double-digit revenue growth in Alibaba's China e-commerce segment, sustained cloud business expansion, and improved operational efficiency across multiple businesses.
CEO Daniel Wu stated, "We are in an investment phase, building AI and infrastructure platforms alongside a consumer-centric ecosystem integrating lifestyle services and e-commerce to create long-term strategic value. This quarter, we intensified strategic investments in these areas, with AI-cloud and consumer services maintaining robust growth. Surging AI demand accelerated Cloud Intelligence Group revenue by 34% YoY, while AI-related products saw triple-digit growth for the ninth consecutive quarter. In consumer services, instant retail scale-up and unit economics drove rapid MAU growth on Taobao."
CFO Toby Xu noted, "Core revenue grew strongly, with AI contributing more to external cloud commercialization and customer management revenue rising 10% YoY. We are directing profits and free cash flow toward future initiatives, expecting short-term earnings volatility. Over the past four quarters, we invested ~RMB120 billion in AI-cloud infrastructure."
The company expanded its instant retail strategy, enhancing scale, user experience, and operational efficiency. Since September, improved logistics, high customer retention, and higher order values significantly boosted unit economics. Over 3,500 Tmall brands integrated offline stores into instant retail by October 31, 2025, enriching supply.
Customer management revenue grew 10% YoY to RMB78.927 billion, driven by higher take rates from "Full-Funnel Promotion" adoption and a new software service fee. Taobao's MAU surged, further supporting this growth.
AIDC posted adjusted EBITA of RMB162 million, benefiting from logistics optimization. AliExpress Choice's unit economics improved steadily, with AIDC revenue up 10% YoY to RMB34.799 billion. Cross-border retail expanded local merchant partnerships, while the Brand+ program enriched supply for Chinese brands going global.
Cloud Intelligence Group revenue hit RMB39.824 billion, with total and ex-Alibaba revenue growth accelerating to 34% and 29% YoY, respectively. Public cloud growth, particularly AI product adoption, fueled this momentum. AI-related revenue sustained triple-digit YoY growth, with enterprises increasingly adopting value-added applications like code assistants. The company continues investing in customer growth and AI innovation to strengthen its cloud infrastructure leadership.
