---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/43524093.md"
description: "Here are incremental takeaways from Alibaba's post-earnings small-group meeting. Highlights below.1) Most importantly, cloud revenue growth is guided to re-accelerate to ~50% next quarter, with further acceleration thereafter. This alleviates concerns around ROI.2) Losses at AI Lab should narrow. But they will likely remain around RMB 10bn per quarter.3) ARR from AI-related revenue was RMB 49.5bn this quarter (quarterly revenue × 4). The Sep quarter ARR could exceed $10bn.4) Excluding the impact of consolidating T-Head (Pingtouge), cloud margins would be higher, and the path to a 20% long-term OPM would be faster. This underscores improving profitability in core cloud.5) On revenue sharing for open-source models, payouts to model developers are minimal. Aside from small splits on models like K3, revenue in most cases accrues 100% to Alibaba.6) Management roughly expects FCF to turn positive by FY29. This implies better cash conversion ahead.7) The Intl commerce business was profitable this quarter. This marks a notable milestone.Other items broadly in line with prior expectations include the following. Details as follows.1) The MaaS annualized revenue target remains RMB 30bn by year-end and could be achieved earlier. It is currently around RMB 16bn.2) Unit economics (UE) in the flash-sales biz. will keep improving. Management maintains the expectation of achieving profitability by FY29.3) E-commerce CMR and EBITDA growth will improve next quarter. No specific magnitude was provided.Overall, the tone in the small-group session was more upbeat and explicit than in the main meeting. Core messages: cloud growth and margins should keep moving higher, while broader commerce growth and profitability should bottom and begin to improve, likely modestly.Dolphin Research's expected combo of e-commerce stabilization plus an AI offensive was effectively confirmed by the company. That strengthens the bullish case."
datetime: "2026-08-21T01:50:45.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/43524093.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/43524093.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/43524093.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# Here are incremental takeaways from Alibaba's post…


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## Comments (1)

- **Fattycat · 2026-08-21T02:32:24.000Z**: Agreed and thanks for sharing 😉


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**