Companies /Consumer Cyclical

Alibaba Group Holding Ltd

NYSE: BABA Internet Retail
$115.77
▼ $4.06 (−3.39%) today
Markets open · 3:34pm ET

Q3 2025 Earnings

Reported Feb 20, 2025, 4:01pm ET · SEC source
$2.93
Miss −84.88%
EPS · est. $19.38
$38.4B
Miss −86.24%
Revenue · est. $278.9B
+4.9%
Beating market
BABA vs S&P since report
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%+6%Feb 20Feb 21report 4:01pm ETearnings−1.6%+5.6%
−3%0+3%+6%Feb 20Feb 21earnings−1.6%+5.6%
BABA +5.6%S&P 500 −1.6%
−3%0+3%+6%Feb 20Feb 21report 4:01pm ETearnings−2.0%+5.6%
−3%0+3%+6%Feb 20Feb 21earnings−2.0%+5.6%
BABA +5.6%NASDAQ −2.0%
−5%0+5%Feb 19Feb 28report 4:01pm ETearnings−2.7%−2.1%
−5%0+5%Feb 19Feb 28earnings−2.7%−2.1%
BABA −2.1%S&P 500 −2.7%
−5%0+5%Feb 19Feb 28report 4:01pm ETearnings−5.4%−2.1%
−5%0+5%Feb 19Feb 28earnings−5.4%−2.1%
BABA −2.1%NASDAQ −5.4%
+8.09%
Day of report
+5.72%
Next session
+0.43%
One week
−1.10%
30 days

S&P 500 over the same 30 days: −5.95%.

Did BABA Beat Earnings? Q3 2025 Results

Alibaba delivered a sharply disappointing fiscal third quarter, with earnings per share of $2.93 missing the $19.38 consensus estimate by 84.88% and revenue of $38.38 billion falling 85.3% year-over-year while trailing the $278.93 billion consensus by 86.24% — gaps largely attributable to currency conversion differences between RMB-reported results and USD-denominated estimates. The underlying operational story was more constructive: consolidated revenue rose 8% in local currency terms to RMB 280.15 billion, driven by Taobao and Tmall's 9% customer management revenue growth and a standout performance from Cloud Intelligence Group, where <a href="https://247wallst.com/investing/2026/02/16/alibabas-new-ai-model-runs-8x-faster-while-sentiment-hits-60-6/">AI-related revenue growth</a> exceeded 100% for the sixth straight quarter. Free cash flow declined 31% to $39.02 billion as capital expenditures surged to $31.37 billion, reflecting aggressive cloud infrastructure buildout that Alibaba expects to sustain as it forecasts continued acceleration in AI-driven cloud demand. Divestitures of Sun Art and Intime signal a sharper focus on core e-commerce and cloud operations going forward.

Key Takeaways
  • Customer management revenue growth of 9% driven by online GMV growth and take rate improvement from software service fee and Quanzhantui adoption
  • 88VIP membership grew double digits to 49 million members
  • Cloud revenue re-accelerated to 13% growth driven by AI-related products
  • AIDC revenue grew 32% driven by AliExpress and Trendyol cross-border performance
  • Strong order growth at Amap and Ele.me driving Local Services 12% revenue increase
  • Cost of revenue as percentage of revenue improved from 60.0% to 58.0%
  • Share-based compensation expense declined 38% year-over-year

“This quarter's results demonstrated substantial progress in our 'user first, AI-driven' strategies and the re-accelerated growth of our core businesses. During this quarter, customer management revenue at Taobao and Tmall Group grew 9% as a result of initiatives to enhance user experience and effective monetization. Our Cloud revenue growth reignited to double digits at 13%, with AI-related product revenue achieving triple-digit growth for the sixth consecutive quarter. Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate. We will continue to execute against our strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth.”

Alibaba CEO, on the earnings call

Forward Guidance & Outlook

Alibaba expects Cloud Intelligence Group revenue growth driven by AI to continue accelerating. The company will continue to execute against strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth. Continued investment in cloud infrastructure is anticipated. The company plans to grow 88VIP membership subscriptions by providing attractive benefits and premium services. AIDC will continue investing in select European markets and the Gulf region for user acquisition. Cainiao will focus on building its global smart logistics network.

BABA YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$80.0B$160.0B$240.0B$260.4B$38.4BRevenue$104.1B$16.1BGross Profit$22.5B$5.6BOperating Income$14.6B$6.4BNet Income
$0$80.0B$160.0B$240.0BRevenueGross ProfitOperating IncomeNet Income

BABA Revenue by Segment

Alibaba E-commerce Group
Taobao and Tmall Group$18.6B+5.0%
E-commerce (Customer Management)
Customer Management (Taobao/Tmall)$13.8B+9.0%
China E-commerce (Customer Management)
All Others (Freshippo, Cainiao, Alibaba Health, etc.)
All Others$7.3B+13.0%
China Quick Commerce

Figures from SEC filings and company reports. Not investment advice.