Alibaba Group recently released its financial results for the first quarter of fiscal year 2026 (ending June 2025). The report showed net profit reaching 42.382 billion yuan, a significant 76% year-on-year increase. While total revenue of 247.65 billion yuan only grew by 2% year-on-year, excluding the impact of divested businesses, comparable revenue actually increased by 10%, driven by strong performance from its core businesses. This achievement was primarily driven by the deepening of its AI + Cloud strategy and synergies in the consumer sector. Alibaba Cloud's revenue growth reached a three-year high, and Taobao's monthly active users surged by 25% due to flash sales.
Financial data showed that the China E-commerce Group (including Taobao, Tmall, etc.) achieved revenue of 140.072 billion yuan, a year-on-year increase of 10%, with the number of 88VIP members exceeding 53 million. The International Digital Commerce Group's revenue grew by 19% to 34.741 billion yuan, approaching break-even. The Cloud Intelligence Group was a bright spot, with revenue of 33.398 billion yuan, a year-on-year increase of 26%, and AI-related product revenue achieving triple-digit growth for eight consecutive quarters. Notably, Alibaba's capital expenditure in the AI + Cloud sector reached 38.6 billion yuan this quarter, with eight new data centers commissioned, driving the full AI integration of businesses like AutoNavi and DingTalk.
Alibaba CEO Wu Yongming emphasized that strategic focus has yielded results. On the consumer side, instant retail drove record daily orders on Taobao; on the technology side, the proportion of AI in external cloud service revenue has significantly increased. The group also disclosed that it repurchased 56 million shares of common stock for $815 million this quarter, with a remaining $19.3 billion in repurchase quotas outstanding. This financial activity aligns with business growth and reflects management's confidence in long-term development. With the accelerated commercialization of AI and the continued optimization of the consumer ecosystem, Alibaba is seizing new opportunities in the digital economy through a dual-engine strategy.
