BABA NYSE Earnings call
Alibaba Group (BABA) · Q2 2026 results
Share price: $101.52 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 20 Aug 2026 and 13 May 2026
Net income down 58.4% on the previous quarter. Management sounded very upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−58.4%
Net income vs Q1 2026
Net income 10.61B vs 25.54B
Revenue +10.5%
Against the same quarter last year (Q2 2025) it is −73.9%, so it is not just seasonal.
Why Net income fell primarily due to a decrease in income from operations and a decrease in net gains from disposal of investments and mark-to-market changes.
2 · How management spoke
Very upbeat
More upbeat than 92% of company calls
Answers to analysts: very upbeat, in line with the script.
Similar to last call.
3 · What stood out
Alibaba Cloud's external revenue grew 45% and EBITDA increased 133% year-over-year.
Valuation
Reverse DCF. Free cash flow from the last full fiscal year, grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
Valuation unavailable: figures reported in CNY, the price in USD (no currency conversion yet).
Current price
$101.52
close of 2026-11-11
P/E
20.1
today
Revenue growth, 3 years
+5.6% a year
compound annual rate (CAGR)
Read between the lines
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Figure
Alibaba Cloud's external revenue grew 45% and EBITDA increased 133% year-over-year, fulfilling the company's commitment to accelerate growth.
Source quote
“Alibaba Cloud's external revenue grew 45% and EBITDA increased 133% year-over-year, continuing to deliver on our commitment to accelerate growth.”
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Fading
Cloud Intelligence Group's external revenue growth accelerated to 40% while AI-related product revenue achieved triple-digit growth for the 11th consecutive quarter.
Source quote
“Over the past quarter, Alibaba's high-intensity investment in our 2 strategic priorities of AI + Cloud and consumption is rapidly translating into tangible business results... ...Alibaba Group's Fiscal Year 2026 Fourth Quarter Earnings Call. This quarter, Cloud Intelligence Group's external revenue growth accelerated to 40%, and AI-related product revenue achieved triple-digit growth for the 11th consecutive quarter.”
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Fading
The quick commerce business improved unit economics while maintaining stable market scale, contributing to a 8% year-over-year growth in CMR on a like-for-like basis.
Source quote
“The quick commerce business achieved significant unit economics improvement while maintaining stable market scale. This quarter, CMR grew 8% year-over-year on a like-for-like basis as we continue to improve user experience and merchant operating efficiency. In summary, the return on our investments in AI + Cloud and consumption are increasingly clear.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Alibaba Cloud's external revenue grew 45% and EBITDA increased 133% year-over-year, continuing to deliver on our commitment to accelerate growth.”
“As we continue to ramp up our supply, our AI and cloud revenue growth will accelerate further in the coming quarters, alongside continued improvement in profitability.”
“Cloud segment revenue growth further accelerated to 45% with its EBITDA margin sequentially rising to 12%.”
Full figures
CNY · ROIC.AI fundamentals (HKEX:9988, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 268.95B | 243.38B | +10.5% | 247.65B | +8.6% |
| Gross profit | 102.86B | 83.99B | +22.5% | 111.22B | −7.5% |
| Operating income | 19.62B | -848.0M | Turned profit | 34.99B | −43.9% |
| Net income | 10.61B | 25.54B | −58.4% | 40.65B | −73.9% |
| EPS | 0.57 | 1.39 | −58.6% | 2.20 | −74.0% |
| P/E today 20.1 | — | 22.8 | — | — | — |
Topics
Most discussed now
- The strong performance demonstrates growing customer adoption of Alibaba's full stack AI capabilities, spanning AI agents, models, cloud…
- This quarter, Alibaba Cloud's external revenue growth accelerated to 45%, a 22 quarter high, while adjusted EBITDA margin reached 11.6%.
Faded since Q1 2026
- Fading Free cash flow was an outflow of RMB 17.3 billion.
- Fading The AI and cloud commercialization inflection point has arrived.
- Fading The first Alibaba can call the AI training factory.