Alibaba Group reports revenue miss for December quarter, shares fall

Alibaba Group (NYSE:BABA) reported weaker-than-expected results for its December quarter, arsenic gross fell abbreviated of forecasts and profits declined sharply, sending its US-listed shares down astir 8%.

For the 4th ended December 31, 2025, the institution posted gross of 284.8 cardinal yuan ($41.4 billion), beneath the 290.7 cardinal yuan expected by analysts.

Revenue roseate 2% year-over-year, oregon 9% connected a like-for-like ground excluding divested businesses.

Net income fell 66% to 15.6 cardinal yuan from 46.4 cardinal yuan a twelvemonth earlier, portion operating income dropped 74%, reflecting continued investments successful speedy commerce, idiosyncratic experience, and technology.

Adjusted EBITA declined 57% year-over-year to 23.4 cardinal yuan, with margins down 12 percent points to 8%.

Cash travel besides weakened, with operating currency travel down 49% and escaped currency travel falling 71%, mostly owed to spending connected its speedy commerce segment.

By segment, Alibaba’s China e-commerce radical grew 6% year-over-year to 159.3 cardinal yuan, though lawsuit absorption gross roseate conscionable 1%. International integer commerce gross accrued 4% year-over-year to 39.2 cardinal yuan.

Cloud Intelligence Group performed strongly, with gross up 36% to 43.3 cardinal yuan, portion the “All Others” class fell 25% to 67.3 cardinal yuan.

“This quarter, Alibaba maintained beardown investments crossed our halfway pillars of AI and consumption,” Alibaba CEO Eddie Wu said successful a statement.

“Looking ahead, we are well-positioned to thrust maturation connected some endeavor AI and user AI fronts, powered by our fullstack AI capabilities spanning instauration models, unreality infrastructure, and proprietary chips, alongside heavy integration with our broader ecosystem.”

Jefferies analysts highlighted that the results were 1.7% down statement and mostly successful enactment with our estimates, noting that adjusted EBITA of 23.4 cardinal yuan fell abbreviated of some statement astatine 32.1 cardinal yuan and their forecast of 27.5 cardinal yuan.

They highlighted mixed conception performance, with China e-commerce underperforming comparative to expectations, planetary integer commerce maturation beneath forecast, and unreality gross somewhat exceeding estimates.

The analysts judge cardinal areas to ticker see exemplary contention and Agentic AI opportunities, unreality pricing and borderline trends, superior expenditure plans, user demand, speedy commerce performance, and planetary strategy.