Alibaba Group reported FY 2026 revenue of RMB 1,023.67 billion (USD 148.40 billion), up 3.0% year-on-year, or 11% on a like-for-like basis after stripping out divested Sun Art and Intime operations.
Net income attributable to ordinary shareholders declined 18.3% to RMB 105.90 billion (USD 15.35 billion). Operating profit fell 64.4% to RMB 50.15 billion as heavy spending on quick commerce, user experience and AI initiatives drove adjusted EBITA down 56.0% to RMB 76.42 billion. Operating margin narrowed to 5% from 14% a year earlier.
Quarter-to-quarter trends were mixed. March-quarter (4Q FY 2026) revenue rose 2.9% to RMB 243.38 billion, yet adjusted EBITA sank 84.4% to RMB 5.10 billion. Free cash flow swung to an outflow of RMB 17.30 billion, versus a RMB 3.74 billion inflow a year ago, reflecting intensified investment in quick commerce, Qwen app user acquisition and expanded cloud infrastructure.
Segment performance:
• Cloud Intelligence Group delivered FY 2026 revenue of RMB 158.13 billion, up 34.0%. March-quarter external cloud revenue accelerated 40% year-on-year; AI-related products contributed 30% of that external tally and have maintained triple-digit growth for 11 consecutive quarters. Segment adjusted EBITA grew 34.9% to RMB 14.27 billion.
• Alibaba China E-commerce revenue advanced 9.0% to RMB 554.22 billion. Customer-management revenue added 5.2% (7% like-for-like), while quick-commerce sales surged 46.5% to RMB 78.52 billion. Segment adjusted EBITA contracted 44.4% to RMB 107.51 billion due to subsidy-linked contra revenue and higher spending on logistics and user experience.
• Alibaba International Digital Commerce revenue climbed 8.9% to RMB 144.17 billion. Losses narrowed sharply; adjusted EBITA improved to a RMB 2.05 billion loss from RMB 15.14 billion the prior year, led by operational efficiencies at AliExpress.
• The “All Others” category—housing Freshippo, Cainiao, Alibaba Health, Amap, Qwen Consumer, DingTalk and other units—saw revenue drop 24.8% to RMB 254.37 billion after divestitures. Adjusted EBITA loss deepened to RMB 35.74 billion as AI investments ramped.
Cash & balance sheet:
Cash and other liquid investments totaled RMB 520.82 billion (USD 75.50 billion) at fiscal year-end, down RMB 76.31 billion year-on-year. Operating cash flow fell 53.4% to RMB 76.21 billion; capital expenditure rose to RMB 126.06 billion, driving free-cash-flow to a RMB 46.61 billion outflow versus a RMB 73.87 billion inflow in FY 2025. Total debt/adjusted EBITDA increased to 2.29× from 1.14×.
Dividend:
The board declared a regular cash dividend of USD 0.13125 per ordinary share (USD 1.05 per ADS), amounting to approximately USD 2.50 billion, payable in July 2026.
Strategic highlights:
• Full-stack AI rollout advanced from incubation to large-scale commercialization. Qwen LLM achieved leading reasoning and coding benchmarks; new multimodal video-generation and world-model offerings were introduced.
• Model-as-a-Service platform “Model Studio” grew its customer base eight-fold year-on-year, supported by expanded model portfolios and flexible enterprise token plans.
• Chip design subsidiary T-Head’s Zhenwu PPU surpassed 100,000 deployments on Alibaba Cloud, with adoption across 30+ automotive and autonomous-driving partners.
Management reiterated commitment to sustained AI and cloud investments to reinforce competitive advantages despite near-term margin pressure.
