Alibaba Shares Rise as Cloud and AI Fuel Revenue Growth Despite Profit Drop

Alibaba Group reported stronger-than-expected revenue for the quarter ended September 30, 2025, reaching 247.8 billion yuan (about $34.8 billion), a 5% increase from the previous year. This surpassed analyst expectations and was driven primarily by rapid growth in its cloud computing division and rising demand for artificial intelligence (AI) services.

Cloud computing revenue grew by 34% to 39.8 billion yuan, beating forecasts and marking an acceleration from previous quarters. Alibaba's investments in AI-related products and services played a key role in this growth, as the company continued to focus on expanding its cloud and AI business.

Despite the strong revenue performance, Alibaba's net profit dropped by 53%. This decline was mainly due to intense competition in the food-delivery sector. However, the impressive rise in cloud and AI business helped offset some of the profit pressure.

Following the earnings announcement, Alibaba's shares rose by as much as 5%, reflecting investor optimism about the company's cloud and AI prospects.

Alibaba shares rise as AI drives 34% cloud sales jump

CNBC

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Alibaba Group Announces September Quarter 2025 Results and Interim Results for t...

Business Wire

HONG KONG--(BUSINESS WIRE)---- $BABA #alibaba--Alibaba Group Holding Limited today announced its financial results for the quarter and six months ended September 30, 2025.

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Benzinga

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