Alibaba Q4 Earnings Miss Estimates, Adjusted EBITA Plunges 57% as Cloud Up 36%
Alibaba’s Q4 adjusted EPS slid to RMB7.09 versus RMB10.94 estimates and its revenue rose 2% to RMB284.84 billion, missing the RMB289.73 billion forecast, while adjusted EBITA plunged 57% to RMB23.4 billion. Cloud Intelligence revenue jumped 36%, Qwen AI hit 300 million MAUs and free cash flow fell 71% to RMB11.35 billion on heavy investment.
1. Q4 Financial Results
Alibaba posted adjusted EPS of RMB7.09 versus analyst estimates of RMB10.94 and saw revenue rise 2% year over year to RMB284.84 billion, below the RMB289.73 billion forecast. Adjusted EBITA plunged 57% to RMB23.4 billion, reflecting a sharp decline in profit margins.
2. Cloud and AI Growth
Cloud Intelligence Group revenue jumped 36% year over year, marking the tenth consecutive quarter of triple-digit growth in AI-related product sales. The Qwen AI consumer interface also surpassed 300 million monthly active users during the period.
3. Investment Impact and Future Targets
Free cash flow fell 71% to RMB11.35 billion as the company ramped up investments in quick commerce, user experience enhancements and technology development. Management has set a five-year goal of achieving $100 billion in combined cloud and AI revenue to drive long-term profitability.