Alibaba (BABA) Report on the results of the quarter of June 2025

The actions listed in Hong Kong Alibaba Group Holdings increased up to 18.84% on Monday, thanks to its better than expected results in the June quarter, fueled by accelerated sales in its unit composed of cloud and a continuous renewal of its electronic commerce activities.

The actions listed by the United States of the Chinese giant had won almost 13% on Friday after the company announced results.

Here’s how Alibaba did during her first tax quarter finished in June, compared to LSEG estimates:

• Income: 247.65 billion Chinese yuan ($ 34.6 billion), compared to 252.9 billion yuan expected.
• Net income: 43.11 billion yuan, against 28.5 billion yuan expected.

Revenues increased by 2% in annual shift, while the net income of the company increased by 78%. Alibaba has attributed the increase in profits to gains in some of its investment in equity and the elimination of the Turkish Electronic Commerce Company Trendyol. This was offset by a drop in operations income.

However, excluding investment gains, Alibaba’s net profit would have decreased 18% in annual shift while it continues to invest in the instant commercial space reduced in China.

Alibaba performs a delicate balancing act between investment areas such as artificial intelligence and new models of electronic commerce, while showing that it can continue to grow on the competitive market of China. Until now, investors have rewarded Alibaba with a rally of 40% in its listed shares in the United States this year.

This thanks in part an acceleration of continuous growth in its key division of cloud computing as well as improvements in its electronic commerce activities in China and international.

Cloud computing was one of the light points.

Alibaba said the division revenues totaled 33.4 billion yuan, up 26% in annual shift. It was faster than the 18% growth rate observed during the previous quarter. Alibaba’s cloud unit is considered the key to monetizing artificial intelligence, much like Microsoft or Google.

“Taken by the demand for robust AI, the cloud intelligence group has experienced accelerated income growth and revenue of AI products are now a significant part of external customers income,” said Eddie Wu, CEO of Alibaba, in a press release.

Investors focus on Alibaba’s investments in artificial intelligence, where he has become a major world player. The company has aggressively launched various models of AI and sells services via its Cloud Computing division.

While Alibaba has concentrated open source AI – which means that its models can be used for free and built by developers – it also sells AI services via its cloud unit.

Alibaba said revenues for AI -related products “have grown three -digit growth from one year to the other for the eighth consecutive quarter”.

Managed adjusted before interest, taxes and amortization (EBITA), a measure of profitability, jumped from 26% in annual sliding in the cloud unit.

Alibaba is developing a new AI chip while trying to rely on the growth of its cloud division, CNBC reported on Friday. The news of the chip, reported for the first time by the Wall Street Journal, was also a driver behind Alibaba’s sharing jump on Friday.

Alibaba Management said on Friday that the objective for the company was to maintain the cloud growth rate above the market average, rather than increasing the short-term margins in the short term.

Alibaba’s main electronic commerce activities, which represent more than 50% of income, have had mixed results.

Overall, income increased by 10% in annual sliding to 19.6 billion yuan. Customer management income, which Alibaba is selling marketing and other merchant services on his platform, jumped 10%. The RMR represents most of the income from electronic commerce.

However, the profits adjusted in the division fell by 21% during the quarter on an annual basis. Indeed, Alibaba has invested massively in a supposedly fast or instant business. This is a feature introduced on Taobao, one of the main Chinese electronic commerce applications in Alibaba, this year that provides deliveries of certain products in China in an hour

Competition is intense in China, with competitors, including the giant of food delivery Meituan and JD.com, all involved. And the rivalry is already wreaking havoc on some of these companies, Meituan this week displaying an 89% dive for net profit adjusted in the second quarter.

Alibaba’s own rapid trade division generated more than 14.8 billion yuan, or $ 2 billion, up 12% in annual sliding. On Friday, during a profit call, the management of Alibaba said that instant trade would add 1 Billion of Yuans in the value of annual annualized annualized (GMV) in the next three years. The GMV is the amount of money treated on Alibaba’s platforms but does not translate into direct income.

However, investors appear well with the instant investments of Alibaba, because its cloud computing activity continues to grow, while its international online shopping unit – which includes Aliexpress – saw a jump of 19% of income during the quarter as the losses have shrunk.

– Amala Balakrishner of CNBC contributed to this report.