HANGZHOU, 29 August 2025 – Alibaba Group Holding reported a stunning 78% surge in quarterly net profit, reaching ¥43.1 billion (~US$6 billion) for the three months ending 30 June 2025, surpassing analysts’ expectations of ¥30.2 billion. The outsized gain was largely driven by mark-to-market gains from equity investments and proceeds from the disposal of its local Trendyol consumer services business.
However, the company’s total revenue rose only 2% year-on-year to ¥247.7 billion (~US$34.6 billion), falling short of estimates. On a like-for-like basis—excluding Sun Art and Intime disposals—revenue growth was significantly healthier at 10%.
Cloud & Instant Commerce Gain Traction
Alibaba’s Cloud Intelligence Group saw robust uptake in AI-related services, resulting in a 26% revenue increase to ¥33.4 billion (~US$4.66 billion). The company highlighted “robust AI demand” as a key driver behind this performance.
Meanwhile, its instant commerce unit, Taobao Shangou, reached 120 million daily orders and expanded its user base to 300 million monthly active users, showcasing strong consumer engagement in rapid fulfillment services.
Strategic Priorities Amid Margin Pressures
Despite the profit surge, Alibaba faced margin contraction. Adjusted EBITA declined due to heavy investment in Taobao Instant Commerce, user acquisition, and technology enhancements. Non-GAAP net income dipped 18% year-on-year, highlighting ongoing margin pressures from strategic investments.
Alibaba’s CEO, Eddie Wu, emphasized the company’s dual strategic pillars—consumption and AI + Cloud, as key levers for sustained growth.
