Alibaba Group reported mixed Q4 fiscal 2026 results. Revenue rose 3% year-over-year to $35.28 billion. Adjusted earnings per ADS fell 95% due to heavy investments in artificial intelligence, cloud infrastructure, and e-commerce.
The Cloud Intelligence Group recorded revenue growth between 38% and 40%. CEO Eddie Wu stated that AI investments are now scaling commercially. AI-related product revenue maintained a trend of triple-digit growth.
BABA shares reversed a pre-market decline to surge approximately 7% during the day. Investors prioritized the long-term potential of Alibaba’s AI and cloud segments over the current decline in profitability.