Alibaba Reports Q2 FY2026 Revenue of 247.795 Billion Yuan

Deep News11-25

Alibaba Group announced its financial results for the second quarter of fiscal year 2026, reporting revenue of 247.795 billion yuan, surpassing market expectations. Excluding the impact of divested businesses, revenue grew 15% year-over-year.

CEO Daniel Zhang stated, "We are in an investment phase, building AI technology and infrastructure platforms, as well as integrating lifestyle services with e-commerce to create long-term strategic value. This quarter, we intensified strategic investments in these areas, with AI+Cloud and consumer services maintaining strong growth."

The company highlighted robust AI-driven demand, accelerating Alibaba Cloud’s revenue growth by 34% year-over-year. AI-related product revenue has now achieved triple-digit growth for nine consecutive quarters.

Alibaba Cloud continues to enhance its full-stack AI capabilities. During the recent Yunqi Conference, the company unveiled upgrades spanning foundational AI models, high-performance infrastructure, and development frameworks. Its flagship model, Qwen3-Max, ranks among global leaders in coding-based problem-solving and agent tool utilization.

Beyond enterprise growth, Alibaba launched its consumer-facing AI app, Qwen, which surpassed 10 million downloads within a week of public testing. The app will integrate with e-commerce, mapping, and local services across Alibaba’s ecosystem.

E-commerce customer management revenue (CMR) rose 10% year-over-year, while instant retail revenue surged 60%. Improved unit economics since September, higher user retention, and increased average order value contributed to Taobao App’s rapid growth in monthly active consumers.

Over 3,500 Tmall brands have connected offline stores to instant retail. During Double 11, Taobao saw double-digit consumer growth, with nearly 600 brands exceeding 100 million yuan in GMV. Tmall’s instant retail daily orders jumped 198% month-over-month.

Alibaba’s mapping app, Amap, introduced a "Street Scan Ranking" in September, establishing a new offline service credit system. On October 1, Amap’s daily active users (DAU) hit a record 360 million.

Alongside core business growth, Alibaba improved operational efficiency across multiple segments, including digital media, Amap, Freshippo, and AliHealth, which all posted year-over-year revenue increases.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment