Alibaba Cloud Growth Explodes, But Earnings Evaporate In Costly AI Push
Key takeaways
- Alibaba Cloud Growth Explodes, But Earnings Evaporate In Costly AI Push Anusuya Lahiri Wed, May 13, 2026 at 6:17 PM GMT+7 3 min read BABA Alibaba Group Holding Ltd.
- The company reported quarterly revenue of $35.28 billion, up 3% from a year earlier and slightly ahead of analyst estimates of $35.23 billion.
- Adjusted earnings per American Depositary Share came in at 9 cents, missing analyst expectations of $1.12.
Alibaba Cloud Growth Explodes, But Earnings Evaporate In Costly AI Push Anusuya Lahiri Wed, May 13, 2026 at 6:17 PM GMT+7 3 min read BABA Alibaba Group Holding Ltd. (NYSE:BABA) shares fell Wednesday after the e-commerce and cloud-computing company reported mixed fiscal fourth-quarter 2026 results, as strong revenue growth and accelerating AI momentum were overshadowed by a sharp decline in adjusted earnings.
The company reported quarterly revenue of $35.28 billion, up 3% from a year earlier and slightly ahead of analyst estimates of $35.23 billion. Excluding the divested Sun Art and Intime businesses, revenue increased 11% on a like-for-like basis.
Adjusted earnings per American Depositary Share came in at 9 cents, missing analyst expectations of $1.12. Adjusted net income fell nearly 100% to $12 million, while adjusted EBITA declined 84% to $740 million as Alibaba increased investments in AI initiatives, Taobao Instant Commerce and user experience improvements.