Alibaba's fiscal 2026 income from operations fell 64% to RMB 50,150 million as cloud revenue rose 34%

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

In unaudited results prepared under US GAAP, Alibaba reported revenue of RMB 1,023,670 million for the fiscal year ended Mar 31, 2026, up 3% from RMB 996,347 million; excluding the disposed Sun Art and Intime businesses, revenue would have grown 11%. Income from operations fell 64% to RMB 50,150 million from RMB 140,905 million, which the company put mainly down to a lower adjusted EBITA, a non-GAAP measure, and a higher goodwill impairment, partly offset by lower one-time provisions and share-based expenses. It tied the fall in adjusted EBITA to investment in quick commerce, user experiences and its technology businesses. Net income attributable to ordinary shareholders was RMB 105,904 million; including non-controlling interests, net income was RMB 102,127 million, down 19% from RMB 125,976 million. The company said the fall in net income came from the lower income from operations, partly offset by mark-to-market gains on its equity investments and gains on disposals, including Trendyol's local consumer service business.1^,2^,3^,4^,5^,6^,7^,8^,9^,10

Cloud Intelligence Group revenue for the year was RMB 158,132 million, up 34% from RMB 118,028 million, and its adjusted EBITA, a non-GAAP measure, was RMB 14,265 million, up 35% from RMB 10,556 million. The announcement states each segment's revenue, cloud included, before an elimination of sales between segments, which it deducts to reach group revenue. In the quarter ended Mar 31, 2026, cloud revenue was RMB 41,626 million, up 38% from RMB 30,127 million, and revenue from external customers grew 40%, which the company tied mainly to public cloud growth, including AI-related products. AI-related product revenue in the quarter was RMB 8,971 million, which the company said was the eleventh consecutive quarter of triple-digit year-over-year growth. Alibaba introduced its Qwen3.6-Plus model in March, with a native context window of up to 1 million tokens, and said the customer base of its Model Studio platform grew eight-fold year over year as of March 2026. It also said more than 100,000 Zhenwu chips from its T-Head subsidiary had been deployed on Alibaba Cloud's public cloud platform.11^,12^,13^,14^,15^,3^,16^,17^,18^,19^,20

Group revenue for the March quarter was RMB 243,380 million, up 3% from RMB 236,454 million, and the company swung to a loss from operations of RMB 848 million from an income from operations of RMB 28,465 million a year earlier. Free cash flow in the March quarter, a non-GAAP measure, was an outflow of RMB 17,300 million against an inflow of RMB 3,743 million a year earlier, which the company tied to quick commerce, user acquisition for its Qwen app and higher cloud infrastructure spending.21^,22^,23

The board approved an annual dividend of US$1.05 per ADS, an American depositary share that represents eight ordinary shares, or US$0.13125 per ordinary share, about US$2.5 billion in all, for holders on record on Jun 11, 2026. The announcement also says Alibaba is deemed a company with a weighted voting rights structure under Hong Kong's listing rules, because of the Alibaba Partnership's director nomination rights.24^,25^,26