BABA-W (09988) announced its financial results for the three months ended June 30, 2025, reporting revenue of RMB 247.652 billion (USD 34.571 billion), representing a 2% year-over-year increase. Operating profit reached RMB 34.988 billion (USD 4.884 billion), down 3% year-over-year. Net income attributable to ordinary shareholders was RMB 43.116 billion (USD 6.019 billion), up 78% year-over-year. Diluted earnings per American Depositary Share were RMB 17.98 (USD 2.51).
The company stated that the decrease in operating profit was primarily due to a reduction in adjusted EBITA, partially offset by decreases in intangible asset amortization and non-cash share-based compensation expenses, as well as one-time provisions recorded in the prior year period. The net income growth was mainly attributable to mark-to-market changes on the group's equity investments and gains from the disposal of Trendyol's local services business, partially offset by the decline in operating profit.
For the quarter ended June 30, 2025, AIDC revenue increased 19% year-over-year to RMB 34.741 billion (USD 4.850 billion), driven primarily by strong performance in cross-border business. AIDC has strategically focused on key regions and continued to emphasize operational efficiency, resulting in significant year-over-year and sequential narrowing of losses. AliExpress Choice's unit economics continued to improve significantly, mainly due to logistics optimization and enhanced input efficiency. Trendyol's international business also showed sequential improvement in unit economics.
For the quarter ended June 30, 2025, Cloud Intelligence Group revenue was RMB 33.398 billion (USD 4.662 billion), up 26% year-over-year. This quarter, overall revenue (excluding revenue from consolidated Alibaba businesses) also accelerated to 26% year-over-year growth. This growth momentum was primarily driven by public cloud business revenue growth, including increased adoption of AI-related products. AI-related product revenue achieved triple-digit year-over-year growth for the eighth consecutive quarter. Alongside the rapid growth in AI demand, the company also observed continued growth in demand for computing, storage, and other public cloud services to support AI applications. The company will continue to invest in customer growth and technological innovation, including AI products and services, to enhance cloud adoption in the AI sector and maintain market leadership.
Alibaba Group CEO Eddie Wu stated: "This quarter, we focused on our consumer and AI+cloud strategy, achieving strong growth. We invested heavily in instant retail business, quickly achieved milestone results, and won consumer mindshare. Through integrating consumer platforms, we generated significant synergies, driving monthly active consumers and daily order volumes to record highs. Driven by sustained strong AI demand, Cloud Intelligence Group revenue accelerated, with AI revenue representing a significant portion of cloud external commercial revenue. Looking ahead, we will continue to invest firmly around our two strategic pillars of mass consumption and AI+cloud, seizing historical opportunities to achieve long-term growth."
Alibaba Group CFO Toby Xu commented: "Our core businesses achieved strong revenue growth. Customer management revenue grew 10% year-over-year, and Cloud Intelligence Group revenue increased 26% year-over-year, with AI-related product revenue achieving triple-digit growth for the eighth consecutive quarter. The strength of our core businesses further reinforces the group's confidence and provides resources to support our significant investments in instant retail and AI. We demonstrated excellence in our commitment to improving operational efficiency, with AIDC significantly reducing losses year-over-year this quarter, approaching breakeven."
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