Alibaba Group (09988) has announced its financial results for the quarter ended March 31, 2026. The group reported revenue of RMB 243.38 billion, representing a 3% increase compared to the same period last year. Excluding revenue from disposed businesses such as Sun Art Retail and Intime, revenue on a comparable basis grew by 11%. Profit attributable to ordinary shareholders was RMB 25.476 billion. Net profit stood at RMB 23.502 billion, surging 96% year-on-year. Diluted earnings per American Depositary Share (ADS) were RMB 10.36.

For the full fiscal year ended March 31, 2026, the group achieved revenue of RMB 1,023.67 billion, a 3% year-on-year increase. On a comparable basis, excluding revenue from the disposed businesses, the growth rate was 11%. Profit attributable to ordinary shareholders for the fiscal year was RMB 105.904 billion. Net profit for the year was RMB 102.127 billion, a decrease of 19% year-on-year. Diluted earnings per ADS for the fiscal year were RMB 44.00.

Alibaba Group CEO, Wu Yongming, stated, "Alibaba's full-stack AI technology investment has officially moved beyond the initial cultivation phase and entered a positive cycle of scaled commercial returns. This quarter, we achieved accelerated breakthroughs across the model, cloud infrastructure, and application layers. The growth rate of external commercial cloud revenue accelerated to 40%, with AI-related revenue accounting for 30%. At the AI model layer, the Qwen large model demonstrated leading capabilities in reasoning and programming, while we also launched video generation and world models to enrich our multimodal model portfolio. At the AI application layer, we see immense potential in agent AI—we have launched several enterprise-grade agents covering scenarios like office work and programming. The consumer-facing Qwen app has fully integrated e-commerce service capabilities, further deepening the synergy between AI applications and our broad consumption ecosystem."

Alibaba Group CFO, Toby Xu, commented, "Our strategic investments continue to translate into business growth. Cloud Intelligence Group revenue growth continued to accelerate, with AI-related product revenue achieving triple-digit growth for the eleventh consecutive quarter. Customer management revenue for China commerce, on a comparable basis, grew 8% quarter-on-quarter. Unit economics and average order value for instant retail steadily improved. Looking ahead, we are confident in our business and will continue to invest in AI+Cloud to strengthen our strategic advantages."

**Consumer Business** **Alibaba China Commerce Group** We are actively integrating AI capabilities with e-commerce applications to enhance the experience for consumers and merchants. On the consumer side, we have connected the Taobao and Tmall e-commerce businesses with the Qwen app, expanding Qwen's user reach and bringing AI-driven new experiences to Taobao and Tmall consumers. Furthermore, the Taobao app launched the Qwen AI Shopping Assistant, providing end-to-end services throughout the shopping journey, including product discovery, pre-sales support, order management, and after-sales service. On the merchant side, we launched the enterprise-grade AI-native agent "Wukong," designed to integrate advanced intelligent capabilities into workflows to improve merchant operational efficiency.

To help merchants expand their business scale and increase their willingness to invest on our platform, starting this quarter we updated the marketing development plan for certain merchants. Under this plan, platform subsidies for these merchants are linked to their investment on the platform. This accounting treatment means these subsidies, previously recorded under sales and marketing expenses, are now treated as a reduction of customer management revenue. Therefore, the disclosed customer management revenue for the quarter showed a 1% year-on-year increase. Excluding the impact of these subsidies treated as revenue reductions, customer management revenue on a comparable basis would have grown 8% year-on-year.

The instant retail business continued to focus on scale while improving unit economics and further expanding high average-order-value categories in both food and non-food segments. This quarter, the unit economics of the instant retail business further improved, with average order value increasing sequentially, primarily due to optimized order structure.

Our 88VIP members represent our highest purchasing power consumer group. Their number continued to grow at a double-digit rate year-on-year, exceeding 62 million. For our most important customers, we will continue to focus on improving 88VIP member retention by enhancing the value proposition.

**Alibaba International Digital Commerce Group (AIDC)** This quarter, AIDC's losses narrowed significantly year-on-year and approached breakeven, primarily driven by logistics optimization and improved operational efficiency. The unit economics of AliExpress Choice business continued to show significant sequential improvement. We are committed to leveraging the supply chain advantages of the Alibaba ecosystem to continuously provide a rich and diverse product assortment. The AliExpress "Brand+" program further accelerated brand onboarding. This quarter, the penetration of quarterly active buyers for "Brand+" exceeded 30%.

Our international wholesale platform, Alibaba.com, continued to drive widespread merchant adoption of its AI-powered tools. Building upon the existing AI procurement assistant Accio, we also launched Accio Work, an intelligent business platform for global SMEs. It covers their entire operational lifecycle beyond just procurement, aiming to significantly lower the entry barrier for cross-border trade and enhance operational efficiency.

**AI+Cloud Business** **Cloud Intelligence Group** For the quarter ended March 31, 2026, Cloud Intelligence Group revenue was RMB 41.626 billion (USD 6.035 billion), an increase of 38% year-on-year. Notably, external commercial revenue growth accelerated to 40% year-on-year. This growth momentum was primarily driven by public cloud revenue growth, which included increased adoption of AI-related products. AI-related product revenue remained strong this quarter at RMB 8.971 billion, marking the eleventh consecutive quarter of triple-digit year-on-year growth.

Alibaba Cloud continues to drive more customers to adopt our comprehensive AI+Cloud products and services, including high-performance networks, distributed storage, cloud operating systems, and model training and inference services. We are executing our strategy with integrated, full-stack AI capabilities to lead the Chinese AI cloud market. These capabilities encompass AI models, AI cloud infrastructure, and orchestration software for managing heterogeneous chip clusters, including self-developed dedicated inference chips.

This quarter, we focused on advancing our Model-as-a-Service (MaaS) strategy. Observing rapid growth in demand for MaaS, we tailored diverse offerings on the MaaS platform, Bailian, for users ranging from individual developers to large enterprises. This includes a broader matrix of top-tier models like Qwen3.6-Plus, enterprise solutions supporting flexible token schemes, and a continuously enriched portfolio of agent products covering Wukong, Miaowu, and industry-specific agents. Consequently, in March 2026, the number of customers on the Bailian platform increased eightfold year-on-year.

**Models** We continue to expand the boundaries of AI capabilities through deep innovation. Recently, by launching a series of new large language models and multimodal models, we have made significant progress in model intelligence. In March, we released Qwen3.6-Plus, achieving substantial all-around performance improvements, particularly excelling in programming and agent programming, setting industry benchmarks in front-end web development and complex warehouse-level tasks. Qwen3.6-Plus also possesses enhanced multimodal perception and reasoning capabilities, with a native context window supporting up to 1 million tokens, alongside improved stability and trustworthiness.

Beyond the Qwen model family, we continue to enrich our specialized model portfolio. This includes the world model HappyOyster, supporting real-time creation and interaction, and the multimodal video generation model HappyHorse, both currently in limited testing.

The company's Board of Directors has approved the distribution of a fiscal year 2026 annual regular cash dividend. The dividend will be paid to holders of ordinary shares and ADSs registered at the close of business on June 11, 2026 (Hong Kong Time and New York Time). The amounts are USD 0.13125 per ordinary share or USD 1.05 per ADS, payable in U.S. dollars. The total dividend amount is approximately USD 2.5 billion.