Alibaba Shares Drop as Earnings Miss and Investment Weighs on Profit

Font: Financial Modeling Prep  • Mar 19, 2026

Alibaba Group Holding Ltd. (NYSE: BABA) reported fourth-quarter results that missed analyst expectations, sending shares down about 4% in premarket trading Thursday.

The Chinese e-commerce and cloud computing company reported adjusted earnings per American Depositary Share of RMB7.09, significantly below the analyst consensus estimate of RMB10.94.

Revenue totaled RMB284.84 billion, missing the forecast of RMB289.73 billion, though it represented a 2% increase year over year. On a like-for-like basis excluding divested businesses Sun Art and Intime, revenue would have grown 9% year over year.

Adjusted EBITA declined sharply by 57% to RMB23.40 billion, primarily due to increased investments in quick commerce, enhancements to user experience, and technology development.

Alibaba’s Cloud Intelligence Group delivered strong performance, with revenue rising 36% year over year and AI-related product revenue achieving triple-digit growth for the tenth consecutive quarter.

The company also reported that its Qwen AI consumer interface surpassed 300 million monthly active users during the quarter.

Free cash flow fell 71% year over year to RMB11.35 billion, largely reflecting elevated investment levels in quick commerce initiatives.