CICC released a research report following Alibaba-W's (09988) announcement of its third-quarter results for the 2026 fiscal year, which corresponds to the fourth quarter of last year. Revenue increased by 1.7% year-on-year to RMB 284.8 billion. On a comparable basis, excluding the impact of asset disposals, revenue grew by 9% year-on-year, falling short of expectations due to weaker performance in both domestic and international e-commerce segments. Adjusted EBITA declined by 57.3% year-on-year to RMB 23.4 billion, primarily attributed to investments in Taobao Deals and overall e-commerce pressures. Cloud revenue growth accelerated, and T-Head achieved mass production. Both domestic and overseas e-commerce businesses faced headwinds, although unit economics for the flash sales business showed a reduced quarterly loss. The firm lowered its target prices for the Hong Kong-listed and US-listed shares by 13% to HK$172 and $178, respectively, while maintaining an "Outperform" rating. CICC also reduced its revenue forecasts for fiscal years 2026 and 2027 by 1% each to RMB 10.33 trillion and RMB 11.875 trillion, citing soft e-commerce performance. Additionally, non-GAAP net profit estimates for fiscal 2026 and 2027 were cut by 15% and 27%, to RMB 807 billion and RMB 983 billion, respectively, reflecting increased investments in AI and flash sales initiatives.