Alibaba Q3 Revenue Up 15% to RMB 247.8bn; Profit Falls 53%
Alibaba’s September quarter revenue reached RMB 247.8 billion, up 15% year-over-year on 16% e-commerce and 34% cloud intelligence growth, with external cloud sales rising 29%. GAAP net income fell 53% to RMB 20.6 billion and free cash flow swung to negative RMB 21.8 billion on heavy AI and quick commerce spending.
1. Quarter Revenue and Segment Growth
Total revenue reached RMB 247.8 billion in the September 2025 quarter, a 15% increase year-over-year. China e-commerce grew 16% and cloud intelligence rose 34%, while external cloud revenue climbed 29%.
2. Profitability and Cash Flow
GAAP net income declined 53% year-over-year to RMB 20.6 billion, operating cash flow fell to RMB 10.1 billion, and free cash flow turned negative RMB 21.8 billion due to elevated investment levels.
3. AI and Quick Commerce Investments
Quick commerce revenue surged 60%, but profitability pressure intensified as the company invested heavily in faster delivery. AI-related products now represent over 20% of external cloud sales, supporting long-term growth.
4. Market Positioning and Outlook
Management holds a market share exceeding the combined next three competitors in China e-commerce and AI cloud. Long-term ecosystem expansion is prioritized, with profitability expected to recover as investments mature and scale benefits emerge.