Alibaba Group reported a 9% year-over-year revenue increase to RMB 268.95 billion for the June quarter. The company's strategic focus on artificial intelligence drove this growth. External revenue for the AI Cloud and Compute Services segment surged 45%, marking its fastest growth in 22 quarters. AI-related product revenue maintained triple-digit growth for the twelfth consecutive quarter.
Net income fell 75% to RMB 10.44 billion. Non-GAAP net income dropped 38% during the period. Capital expenditures increased 75% as the company invested heavily in AI infrastructure. These aggressive technology investments resulted in significant negative free cash flow for the quarter.