<div id="readability-page-1"><p><strong>Alibaba Group (BABA)</strong>, the Chinese e-commerce and cloud company, reported weaker-than-expected Q4 FY26 earnings results as aggressive spending on AI, cloud expansion, and quick commerce continued to weigh on profitability. Following the earnings release, Alibaba stock fell over 2% in premarket trading on Wednesday.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>For the quarter ended March 31, 2026, Alibaba reported revenue of 243.38 billion yuan ($35.28 billion), up 3% year-over-year but slightly below analyst expectations of $36.35 billion. Adjusted diluted earnings per ADS came in at $0.09, down 95% from the prior year and well below the consensus estimate of $0.90 per share.</p> <p>Looking ahead, Alibaba said it will continue investing aggressively in AI and cloud infrastructure. Management reaffirmed the company's 380 billion yuan ($53 billion) AI spending plan through 2027 as it aims to expand its position in China's growing AI market.</p> <h2><strong>AI and Cloud Remain the Bright Spot</strong></h2> <p>The company's cloud and AI business remained a bright spot during the quarter. Revenue from Cloud Intelligence Group rose 38% year-over-year to 41.63 billion yuan, while revenue from external customers accelerated to 40% growth.</p> <p>Alibaba said AI-related product revenue delivered triple-digit growth for the 11th consecutive quarter, with AI products now contributing roughly 30% of cloud revenue.</p> <p>CEO Eddie Wu said Alibaba's AI strategy is moving from &#34;incubation to commercialization at scale&#34; as the company pushes deeper into enterprise AI services and consumer applications built around its Qwen platform.</p> <h2><strong>Spending Pressures Hurt Margins</strong></h2> <p>However, the strong cloud momentum was offset by a sharp decline in profitability as Alibaba continued increasing investments across several businesses. Adjusted EBITA fell 84% year-over-year to 5.1 billion yuan as the company spent heavily on AI infrastructure, quick commerce, and user acquisition.</p> <p>At the same time, sales and marketing expenses surged to 53.4 billion yuan from 36.2 billion yuan a year ago, driven largely by subsidies in its e-commerce business and spending tied to the Qwen AI app. </p> <p>The company's free cash flow also turned negative during the period, with an outflow of 46.61 billion yuan ($6.76 billion), compared with an inflow of 73.87 billion yuan in fiscal year 2025. Meanwhile, net cash provided by operating activities declined 53% year-over-year to 76.21 billion yuan ($11.05 billion).</p> <h2><strong>Is Alibaba Stock a Buy Now?</strong>  </h2> <p>Wall Street remains constructive on the stock. Alibaba carries a Strong Buy consensus rating based on 14 Buy ratings and two Holds over the past three months. The average BABA price target stands at $184.07, suggesting roughly 36.57% upside from current levels.</p> <p>However, it's worth noting that estimates will likely change following today's earnings report.</p></div>

Alibaba FY2026 Q4: Revenue of 243.38 billion RMB fell short of expectations, yet net profit doubled year-over-year to 25.476 billion RMB; AI-related products saw triple-digit revenue growth, and AI chips achieved large-scale commercial deployment. Does this earnings report represent a turnaround—or a stumble?

<p>Alibaba FY2026 Q4: Revenue of 243.38 billion RMB fell short of expectations, yet net profit doubled year-over-year to 25.476 billion RMB; AI-related products saw triple-digit revenue growth, and AI chips achieved large-scale commercial deployment. Does this earnings report represent a turnaround—or a stumble?</p>

Revenue Misses Expectations: Can Alibaba Turn the Tide with AI?

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<p>Alibaba Group (BABA) reported disappointing Q4 FY26 earnings, with revenue of 243.38 billion yuan ($35.28 billion), below expectations. Adjusted earnings per ADS fell 95% to $0.09, significantly missing the consensus estimate. Despite strong growth in its AI and cloud sectors, profitability declined due to heavy investments, leading to a 2% drop in stock price. The company plans to continue its aggressive AI spending, reaffirming a 380 billion yuan ($53 billion) budget through 2027. Wall Street maintains a Strong Buy consensus on the stock, with an average price target of $184.07, indicating potential upside.</p>

- Alibaba Group (BABA) reported weaker-than-expected Q4 FY26 earnings, driven by significant spending on AI and cloud expansion, resulting in a 2% drop in stock price.  
- Revenue of 243.38 billion yuan ($35.28 billion) represented a 3% increase year-over-year but fell short of analyst expectations, while adjusted earnings per ADS declined 95% from the previous year.  
- Despite profitability pressures, Alibaba's cloud and AI sectors showed strong growth, with cloud revenue increasing 38% year-over-year, and management plans aggressive AI investments through 2027.

BABA Earnings: Alibaba Stock Drops on Big Q4 Earnings Miss Despite AI Cloud Strength