Alibaba Q4 Revenue Up 3%, Profitability Down 84%

Alibaba Group Holding reported mixed fiscal fourth-quarter results on Wednesday, with revenue rising 3 percent year-over-year to 243.4 billion yuan ($34.3 billion) but core profitability plunging amid heavy investments in artificial intelligence and cloud computing. The Hangzhou-based ecommerce giant, which operates platforms including Taobao and Tmall, posted adjusted earnings before interest, taxes and amortization of 5.1 billion yuan ($750.9 million) for the quarter ended March 31, an 84 percent decline from the prior year that fell short of analyst expectations.

For the full fiscal year 2026, net profit dropped 18 percent to 105.9 billion yuan ($15.6 billion) from 129.5 billion yuan, reflecting pressures from a slowing Chinese economy, intense competition in ecommerce and quick commerce, and surging costs for AI infrastructure. Total annual revenue grew modestly, supported by strength in core marketplaces, digital media and logistics, though margins compressed due to elevated research and development spending.

Alibaba's Cloud Intelligence Group delivered the quarter's brightest spot, with revenue climbing 38 percent to 41.6 billion yuan and adjusted EBITA surging 57 percent....