Understanding the Market | Alibaba-W opened over 6% lower after earnings, with third-quarter revenue and profit performance falling short of expectations
Alibaba-W opened over 6% lower after earnings, and as of the time of writing, it has dropped 6.44% to HKD 123.5, with a trading volume of HKD 1.397 billion. On March 19, Alibaba released its fiscal Q3 2026 earnings report, achieving revenue of CNY 284.84 billion, a year-on-year increase of 2%; adjusted net profit decreased by 67% year-on-year to CNY 16.71 billion. Adjusted EBITA was CNY 23.397 billion, a year-on-year decline of 57%. Alibaba stated that this was mainly due to investments in instant retail, user experience, and technology, partially offset by improvements in operating performance brought about by the continued growth of cloud business and enhancements in operational efficiency across multiple business segments. During the period, Alibaba Cloud revenue grew by 36%, and revenue from AI-related products experienced triple-digit growth for the tenth consecutive quarter; e-commerce business revenue was CNY 131.583 billion, a year-on-year increase of 1%; customer management revenue also grew by 1% year-on-year. In terms of cash flow, the net cash flow from operating activities was CNY 36.032 billion, a decrease of 49% compared to CNY 70.915 billion in the same period of 2024; free cash flow was CNY 11.346 billion, a decrease of 71% compared to CNY 39.020 billion in the same period of 2024
According to Zhitong Finance APP, Alibaba-W (09988) opened over 6% lower after its earnings report, and as of the time of writing, it has dropped 6.44% to HKD 123.5, with a trading volume of HKD 1.397 billion.
In terms of news, on March 19, Alibaba released its financial report for the third quarter of fiscal year 2026, achieving revenue of CNY 284.84 billion, a year-on-year increase of 2%; adjusted net profit decreased by 67% year-on-year to CNY 16.71 billion. Adjusted EBITA was CNY 23.397 billion, a year-on-year decline of 57%. Alibaba stated that this was mainly due to investments in instant retail, user experience, and technology, partially offset by improvements in operating performance brought about by the continued growth of cloud business and enhancements in operational efficiency across multiple business segments.
During the period, Alibaba Cloud's revenue grew by 36%, and revenue from AI-related products has seen triple-digit growth for the tenth consecutive quarter; e-commerce business revenue was CNY 131.583 billion, a year-on-year increase of 1%; customer management revenue also increased by 1% year-on-year. In terms of cash flow, the net cash flow from operating activities was CNY 36.032 billion, a decrease of 49% compared to CNY 70.915 billion in the same period of 2024; free cash flow was CNY 11.346 billion, a decrease of 71% compared to CNY 39.020 billion in the same period of 2024
