TLDR
- Alibaba’s cloud computing revenue jumped 34% to 39.8 billion yuan, beating estimates of 37.9 billion yuan
- AI-related product revenue achieved triple-digit growth for the ninth consecutive quarter
- Overall revenue rose 5% to 247.8 billion yuan, topping Wall Street expectations
- Alibaba spent roughly 120 billion yuan on AI and cloud infrastructure over the past four quarters
- Qwen app, Alibaba’s ChatGPT rival, surpassed 10 million downloads within the first week of launch
Alibaba reported second-quarter results that beat Wall Street expectations. The Chinese tech giant’s cloud computing division drove much of the growth.
$BABA (Alibaba) #earnings are out: pic.twitter.com/HAKqGkU8V2
— The Earnings Correspondent (@earnings_guy) November 25, 2025
The company posted total revenue of 247.8 billion yuan ($34.8 billion) for the quarter ended September 30. That topped analyst estimates of 242.65 billion yuan. Revenue increased 5% year-over-year.
Alibaba’s New York-listed shares rose 4% in premarket trading. The stock gained another 3.9% as U.S. markets opened on Tuesday.
Alibaba Group Holding Limited, BABA
The cloud intelligence division delivered the strongest performance. Revenue in this segment reached 39.82 billion yuan. That beat expectations of 37.9 billion yuan.
The 34% growth rate marked an acceleration from the previous quarter. Alibaba’s cloud division grew 26% in the June quarter. This marks the third straight quarter of accelerating growth.
CEO Eddie Wu credited AI investments for the cloud unit’s performance. “Robust AI demand further accelerated our Cloud Intelligence Group business,” Wu said in the earnings statement.
AI-related products continue to show explosive growth. These products posted triple-digit year-over-year growth for the ninth consecutive quarter.
Heavy Spending on AI Infrastructure
Alibaba is pouring money into artificial intelligence. The company spent roughly 120 billion yuan on AI and cloud infrastructure over the past four quarters. CFO Toby Xu said the company is re-investing profits and free cash flow for future growth.
In February, Alibaba announced plans to spend 380 billion yuan ($53 billion) over three years on AI. The company added more spending commitments in September for AI models and infrastructure development.
The cloud division’s profitability also improved. Earnings before interest, taxes, and amortization grew 35% to 3.6 billion yuan.
Consumer Apps Gain Traction
Alibaba launched its Qwen app on November 18. The AI chatbot competes directly with OpenAI’s ChatGPT. The app surpassed 10 million downloads within its first week.
Qwen runs on Alibaba’s own artificial intelligence models. The company has emerged as one of China’s leading AI players.
The company is also investing heavily in instant commerce. This service promises super-fast delivery on certain items. CFO Xu noted that AI revenue is growing its share of cloud business from external customers.
Quick Commerce Drives User Growth
Fast delivery options helped attract more users to Alibaba’s shopping platforms. CEO Wu said quick commerce continued to scale with improved unit economics. The service drove rapid growth in monthly active consumers.
Chinese retailers on Alibaba’s platforms are offering discounts and deals. Competition remains fierce in the domestic market.
A government trade-in program is also boosting sales. The policy lets shoppers exchange older appliances for newer versions. The program expires on December 31.
Alibaba’s adjusted earnings per American depositary receipt came in at 4.36 yuan. That missed Bloomberg consensus projections of 6.34 yuan. The company’s near-term profitability is expected to fluctuate as it invests in growth.
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