<div id="readability-page-1"><div> By Tracy Qu <pre></pre> Alibaba Group's profitability remained under pressure in the fiscal fourth quarter as the Chinese tech giant continues to invest heavily in artificial intelligence and fend off intense competition in the food-delivery space. The Hangzhou-based company eked out adjusted net profit of 86 million yuan, equivalent to $12.7 million, in the three months ended March, down sharply from 29.85 billion yuan a year earlier. The metric, which excludes share-based compensation, investment gains and losses and other items, is closely watched by analysts, as it reflects core business operation profitability. Alibaba's net profit doubled to 25.48 billion yuan, equivalent to $3.75 billion, which it attributed to mark-to-market changes on equity investments and a low base last year, when it booked losses on the disposals of hypermarket operator Sun Art and department-store operator Intime. Analysts had expected net profit of 11.16 billion yuan for the quarter, according to a FactSet-compiled estimate. Revenue came in at 243.38 billion yuan, representing a 3% increase from last year, worse than an estimate of 246.475 billion yuan. Alibaba's profit has been hit hard in recent quarters as it battles Meituan and JD.com for supremacy in China's fiercely competitive food-delivery industry. The company's Hong Kong-listed shares have declined 7% this year, roughly in line with the Hang Seng Tech Index's performance amid volatility in technology stocks. <pre></pre> Write to Tracy Qu at tracy.qu@wsj.com <pre></pre> (END) Dow Jones Newswires May 13, 2026 06:31 ET (10:31 GMT)Copyright (c) 2026 Dow Jones &amp; Company, Inc.</div></div>

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Alibaba Group's profitability faced challenges in the fiscal fourth quarter, with an adjusted net profit of 86 million yuan ($12.7 million), down from 29.85 billion yuan a year prior. The company's net profit rose to 25.48 billion yuan ($3.75 billion) due to equity investment changes. Revenue increased by 3% to 243.38 billion yuan, below expectations. The company continues to compete fiercely in the food-delivery market against Meituan and JD.com, with its Hong Kong shares down 7% this year, reflecting broader tech stock volatility.

Alibaba's Quarterly Profitability Still Under Pressure