Alibaba's June-quarter revenue rose 9% to RMB268,953 million as income from operations fell 57%

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.

On Aug 20, 2026, Alibaba reported unaudited revenue of RMB268,953 million for the quarter ended June 30, 2026, up 9% from RMB247,652 million a year earlier, while income from operations fell 57% to RMB15,161 million from RMB34,988 million. Alibaba said the fall in income from operations was primarily due to lower adjusted EBITA, an impairment of goodwill and a provision tied to a fine the European Commission imposed under the Digital Services Act, which the release puts at EUR550 million. Adjusted EBITA is a non-GAAP measure that leaves out share-based compensation, amortization and impairment of intangible assets, impairment of goodwill and other items; for the group it fell 30% to RMB27,329 million from RMB38,844 million a year earlier. Net income, before the share attributed to non-controlling interests, was RMB10,444 million, down 75% from RMB42,382 million, which Alibaba tied to lower income from operations and smaller gains from investments; net income attributable to ordinary shareholders was RMB10,537 million.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12

With the June quarter, Alibaba began reporting under a new segment structure that includes AI Cloud and Compute Services, which combined its cloud unit with the T-Head chip unit, and AI Labs and Applications, which brought together its AI model labs, Qwen consumer business and QwenWork, formerly in All others. AI Cloud and Compute Services had segment revenue of RMB48,437 million, up 45% from a recast RMB33,418 million a year earlier. That segment revenue is before inter-segment eliminations, which the table shows for the whole group as a deduction of RMB18,270 million in the quarter on the way to the group's RMB268,953 million; the release says growth in revenue from external customers also reached 45%. The segment's adjusted EBITA was RMB5,628 million, up 133% from a recast RMB2,419 million a year earlier. Segment revenue of AI Labs and Applications was RMB3,338 million, up 16% from a recast RMB2,882 million, and its adjusted EBITA loss was RMB13,861 million against a recast loss of RMB3,224 million a year earlier, which Alibaba tied to increased investment in AI capabilities and higher inference cost for the Qwen app.13^,14^,15^,16^,17^,18^,19^,20^,21^,22

In August, Alibaba said, it launched its flagship foundation model Qwen3.8-Max within three months of the prior version and opened its model weights, with 2.4 trillion parameters. AI-related product revenue was RMB12,376 million in the quarter, which Alibaba said was the twelfth consecutive quarter of triple-digit year-over-year growth, and it said 250 million users had had a first AI-driven shopping experience through the Qwen app since its launch.23^,24^,25

Capital expenditures were RMB67,678 million, up 75% from RMB38,676 million a year earlier, which the company tied to continued investment in AI infrastructure. Free cash flow, a non-GAAP measure of liquidity, was an outflow of RMB44,670 million against an outflow of RMB18,815 million a year earlier. Cash and other liquid investments were RMB474,505 million at June 30, 2026, against RMB520,824 million at March 31, 2026, and Alibaba had 132,165 employees at June 30, 2026, up from 131,462 at March 31.26^,27^,28^,29

Amounts are in renminbi as the unaudited release states them; its US dollar translations use RMB6.7851 to US$1.00, the rate on June 30, 2026, which puts revenue at US$39,639 million.30^,1