Alibaba posted stronger-than-expected revenue in its fiscal second quarter as booming demand for artificial intelligence continued to lift its cloud business.
Revenue rose 5% to 247.8 billion yuan ($34.8 billion), beating LSEG estimates, while cloud computing revenue jumped 34% year-over-year to 39.8 billion yuan.
CEO Eddie Wu said AI-driven demand pushed cloud growth higher for a ninth straight quarter, with AI product revenue rising at triple-digit rates.
Alibaba just reported Q3 numbers. Look at their Cloud Intelligence Group:
— Value Investigator (@value_invest12) November 25, 2025
The acceleration accelerates! The cloud king of China. $BABA pic.twitter.com/KgELFTsT59
The company has spent roughly 120 billion yuan on AI and cloud infrastructure over the past four quarters. Alibaba also reported that downloads of its Qwen chatbot surpassed 10 million in the first week.
Despite this momentum, Alibaba’s aggressive investment in China’s hyper-competitive instant commerce sector dragged down profits. Adjusted EBITA fell 78% year-over-year to 9.1 billion yuan.
Still, investors looked past the margin pressure as China e-commerce revenue rose 16% and quick commerce surged 60% in the quarter.
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TIPP Staff
