Alibaba Group Holding Limited announced its financial results for the quarter and six months ended September 30, 2025, highlighting strong growth in its core AI and cloud businesses, while reporting a significant decline in profitability due to strategic investments. Revenue for the quarter ended September 30, 2025, reached RMB247.8 billion (US$34.8 billion), a 5% year-over-year increase. Excluding the impact of disposed businesses like Sun Art and Intime, like-for-like revenue grew by 15%. The Cloud Intelligence Group recorded a 34% year-over-year revenue increase, driven by robust demand for AI-related products, which saw triple-digit growth for the ninth consecutive quarter. Customer management revenue in the Alibaba China E-commerce Group rose 10% year-over-year, supported by improved take rates and the expansion of the Quanzhantui service. Despite strong top-line growth, income from operations declined by 85% year-over-year to RMB5.4 billion (US$754 million), primarily due to heavy investments in quick commerce, user experience enhancements, and technology development. Adjusted EBITA fell 78% to RMB9.1 billion (US$1.27 billion). Net income attributable to ordinary shareholders was RMB21.0 billion (US$2.95 billion), down 52% from the same quarter last year. Non-GAAP net income dropped 72% to RMB10.4 billion (US$1.45 billion), reflecting the same investment pressures. For the six months ended September 30, 2025, revenue totaled RMB495.4 billion (US$69.6 billion), a 3% year-over-year increase, with like-for-like growth of 12% excluding divested businesses. Income from operations decreased 43% to RMB40.4 billion (US$5.67 billion). Net income attributable to ordinary shareholders was RMB64.1 billion (US$9.01 billion), down 6% year-over-year, supported by gains from equity investments and the disposal of the Trendyol local consumer service business. Alibaba’s quick commerce business showed strong progress, with significant improvements in unit economics, higher fulfillment efficiency, and increasing average order value. The company onboarded around 3,500 Tmall brands to its quick commerce platform by October 31, 2025. The 11.11 Global Shopping Festival delivered double-digit consumer growth on the Taobao app, driven by user-friendly promotions and merchant support. The Cloud Intelligence Group continued to lead China’s AI cloud market, capturing a 35.8% share according to Omdia. Alibaba Cloud unveiled major upgrades to its full-stack AI capabilities at the Apsara Conference, including advanced foundation models, high-performance infrastructure, and AI services. The Qwen family of models on Hugging Face had over 180,000 derivative models, more than double the second-place model. Alibaba repurchased 17 million ordinary shares (about 2 million ADSs) for US$253 million during the quarter. The remaining authorization for its share repurchase program stood at US$19.1 billion as of September 30, 2025. Cash and liquid investments totaled RMB573.9 billion (US$80.6 billion) as of September 30, 2025. Net cash from operating activities declined 68% year-over-year to RMB10.1 billion (US$1.42 billion), while free cash flow turned negative at RMB21.8 billion (US$3.07 billion), compared to a positive RMB13.7 billion in the same quarter last year, due to increased capital spending on AI and cloud infrastructure. Alibaba reaffirmed its commitment to reinvesting profits and free cash flow into long-term strategic initiatives in AI, cloud computing, and a consumption platform integrating e-commerce and daily life services. The company emphasized that near-term profitability may fluctuate, but long-term value creation remains its priority. A conference call to discuss the results will be held on November 25, 2025, at 7:30 a.m. U.S. Eastern Time (8:30 p.m. Hong Kong Time). Investors can access the live webcast and replay via Alibaba’s Investor Relations website.