Alibaba Group (BABA) Q4 2025 earnings summary

Executive summary

• Total revenue for the March quarter was RMB 236.5 billion, up 7% year-over-year, with adjusted EBITDA rising 36% and strong performance across core businesses, especially AI and cloud.

• Net income for the quarter surged to RMB 12 billion, up 1203% year-over-year, and diluted EPS rose 296% to RMB 0.65.

• Alibaba Cloud revenue grew 18% year-over-year, with AI-related product revenue maintaining triple-digit growth for the seventh consecutive quarter.

• E-commerce platforms Taobao and Tmall saw customer management revenue rise 12% year-over-year, with 88 VIP members surpassing 50 million.

• Shareholder returns were enhanced via US$11.9 billion in share repurchases and US$4.6 billion in annual and special dividends.

Financial highlights

• Consolidated revenue was RMB 236.5 billion for the quarter (+7% YoY); annual revenue was RMB 996.3 billion (+6% YoY).

• Adjusted EBITDA for the quarter was RMB 32.6 billion (+36% YoY); annual adjusted EBITDA was RMB 173.1 billion (+5% YoY).

• Non-GAAP net income for the quarter was RMB 29.8 billion (+22% YoY); GAAP net income was RMB 12 billion, up RMB 11.1 billion, mainly due to equity investment mark-to-market changes.

• Operating cash flow for the quarter was RMB 27.5 billion (+18% YoY); free cash flow decreased 76% to RMB 3.7 billion due to increased cloud infrastructure expenditure.

• Net cash position as of March 31, 2025, was RMB 366.4 billion (US$50.5 billion).

Outlook and guidance

• Continued focus on e-commerce and AI plus cloud as core growth drivers, with a second growth curve powered by technology over the medium to long term.

• Strong confidence in sustained Alibaba Cloud revenue growth, driven by AI adoption across industries and ongoing investments in cloud and AI infrastructure.

• Monetization initiatives, including software service fees and QZT, expected to continue driving CMR growth in fiscal 2026.

• Investments in instant commerce and user growth to continue, with short-term EBITDA fluctuations anticipated due to competitive dynamics.

• Continued investment planned in user experience, technology, and global expansion, with emphasis on AI innovation and cloud adoption.