Alibaba Reports Earnings: Cloud Unit Grows Despite Revenue Miss

Aug 29, 2025

Alibaba Group released its quarterly earnings on Friday, announcing a 2% year-over-year increase in revenue to 247.65 billion Chinese yuan for the quarter ending June 30, 2025.

Despite the revenue growth, Alibaba missed market expectations. The company’s e-commerce business faced strong competition and changing consumer demand, impacting overall sales.

On a brighter note, Alibaba's cloud computing unit delivered strong sales growth, helping offset some of the pressure from its core e-commerce business.

Alibaba’s stock has outperformed both the broader Chinese stock market and the S&P 500 (SPX) this year, rising more than 40%.

Why did Alibaba miss revenue expectations?

Alibaba's main e-commerce business faced increased competition and changing consumer behavior, which affected its overall revenue.

How did Alibaba's cloud business perform?

Alibaba's cloud computing unit saw strong sales growth, which was a positive part of the earnings report.

How has Alibaba's stock performed this year?

Alibaba's stock has risen over 40% this year, outperforming both the Chinese market and the S&P 500.

Sources
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