Alibaba's Cloud Intelligence Group revenue rose 34% to 158.13 billion yuan in fiscal 2026, while company-wide operating income fell 64%

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.

Alibaba reported in its annual report on Form 20-F, filed on May 20, 2026, that revenue for the year ended Mar 31, 2026 was 1.02 trillion yuan, up 2.7% on the year before. A 20-F is the yearly report a non-US company listed in the United States files with the SEC, and this one translates the revenue into $148.4 billion. Its Cloud Intelligence Group, which includes Alibaba Cloud and other businesses, had segment revenue of 158.13 billion yuan, up 34% from 118.03 billion yuan the year before. The filing shows segment revenue before sales between Alibaba's own segments are eliminated. Alibaba said the segment's revenue excluding Alibaba-consolidated subsidiaries grew 33%, primarily driven by growth in public cloud revenue, including the increasing adoption of AI-related products. The segment's adjusted EBITA, the company's own adjusted profit measure before interest, taxes and amortization, rose 35% to 14.27 billion yuan from 10.56 billion yuan.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13^,14

The report described "AI + Cloud" as a strategic initiative, with offerings in AI infrastructure, a foundational model, MaaS and AI applications for enterprises and consumers, and said the company expected to invest in full-stack AI capabilities. Sales and marketing expenses rose 70% to 245.02 billion yuan. Excluding share-based compensation, they rose from 14% to 24% of revenue, which Alibaba attributed mainly to investment in the user experience of its China e-commerce group and to user acquisition for the Qwen app. The All others segment, which includes the Qwen Consumer Business Group alongside Freshippo, Cainiao and DingTalk among other businesses, had an adjusted EBITA loss of 35.74 billion yuan, against 9.50 billion yuan a year earlier. The company put the loss down mainly to increased investment in technology businesses, partly offset by better results at Hujing Digital Media and Entertainment Group and other businesses. The filing says it moved Cainiao, Amap and Hujing Digital Media and Entertainment Group into All others in a simplified reporting structure and updated its earlier figures to match, so the year-earlier loss is stated on that basis.15^,16^,17^,18^,19^,20^,21^,22

Operating income fell 64% to 50.15 billion yuan from 140.91 billion yuan. The company said the drop was primarily due to lower adjusted EBITA and higher goodwill impairment, partly offset by lower one-time provisions and non-cash share-based expenses. Net income attributable to Alibaba Group Holding Limited fell 20.4% to 103.59 billion yuan from 130.11 billion yuan, and net income including non-controlling interests fell 18.9% to 102.13 billion yuan. Below operating income, interest and investment income, net, was 87.51 billion yuan against 20.76 billion yuan a year earlier, which the company attributed mainly to mark-to-market gains on its equity investments and gains from the disposal of investments, including the local consumer service business of Trendyol. In the filing's dollar translation, capital expenditures were $18.28 billion, and net cash from operating activities was $11.05 billion, down 53%. The company attributed the drop in operating cash to investment in quick commerce and higher cloud infrastructure spending.23^,24^,25^,26^,27^,28^,29^,30^,31^,32^,33^,34^,35^,36

We hold the text of the filing's management discussion, 90 subsections, but not its notes to the financial statements or its other exhibits.37