【9988 Earnings】Alibaba Falls 9%, CEO: Cloud and AI Commercialization Revenue Expected to Exceed $100 Billion Within Five Years; FY29 Instant Retail Achieves Profitability

Alibaba (09988)
Announces Q4 Fiscal Year 2025 Results
CEO Daniel Zhang stated during the earnings call that Alibaba Group’s AI strategic business goals are very clear. Over the next five years, including MaaS, the commercialization revenue from cloud and AI will surpass $100 billion.

Alibaba’s U.S. stock (NYSE: BABA) is down 9%, trading at $122.37.

【9988 Earnings】Alibaba’s adjusted net profit for the last quarter was 16.7 billion RMB, below expectations, affected by strategic investments. Revenue increased by 2% year-over-year, with AI Qianwen MAU surpassing 300 million.

Daniel Zhang said that currently, Alibaba has a complete full-stack AI capability: with chips and cloud computing as the AI infrastructure layer; with Alibaba Token Hub as the main line, composed of large models, MaaS business, and “to B + to C” applications as the AI application layer; forming a full capability and scenario from AI infrastructure to applications.

Zhang also revealed that Alibaba Cloud’s external commercialization revenue for fiscal year 2026, ending February 2026, officially exceeded 100 billion RMB.

He further mentioned that over the past three months, the token consumption scale (words, i.e., AI language and currency) in the public model service market on the Bai Lian MaaS platform increased sixfold. It is expected that MaaS revenue will become Alibaba Cloud’s largest revenue product.

Pingtouge’s self-developed GPU chips have achieved mass production. As of February 2026, a total of 470,000 units have been delivered. In Alibaba Cloud’s actual business scenarios, over 60% of Pingtouge chips serve external commercial clients.

He also announced that Alibaba will launch the next version of the model based on Qwen 3.5, optimized for coding and agentic scenarios.

Alibaba continues to invest in instant retail. When asked about future expectations, CEO James Jiang said that the primary goal is to maintain the overall transaction scale of instant retail in FY28 at over 1 trillion RMB. Based on this scale, he believes positive cash flow from scale can be achieved. Additionally, it is expected that FY29 will see overall profitability in the instant retail sector.