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Mar 31

Alibaba Q4 2025 Earnings Report

Alibaba reported solid growth in revenue and profits during Q4 FY25, supported by strong AI and cloud momentum.

Key Takeaways

Alibaba delivered strong Q4 FY25 results with notable growth in revenue and net income. Cloud and AI businesses continued to gain traction, while international commerce and entertainment segments performed well. Profitability improved due to better operational efficiency and lower compensation expenses.

Total Revenue
$32.6B
Previous year: $30.9B
+5.6%
EPS
$1.73
Previous year: $1.4
+23.6%
Operating Margin
12%
Previous year: 7%
+71.4%
Cloud Revenue Growth
18%
AI Revenue Growth
100%
Cash and Equivalents
$20B
Previous year: $84.3B
-76.2%
Free Cash Flow
$516M

Alibaba

Alibaba

Alibaba Revenue by Segment

Alibaba Revenue by Geographic Location

Forward Guidance

Alibaba expects continued momentum in AI and cloud, supported by improved user experience and monetization, while remaining cautious on logistics and macroeconomic challenges.

Positive Outlook

  • AI-related products are driving strong cloud revenue growth.
  • Public cloud adoption continues to accelerate.
  • Taobao and Tmall Group benefit from improved take rates and marketing efficiency.
  • Youku’s profitability boosts entertainment segment results.
  • Operational efficiency gains improved EBITA margins.

Challenges Ahead

  • Cainiao revenue declined due to logistics integration changes.
  • Free cash flow fell sharply due to cloud infrastructure spending.
  • International businesses still operating at a segment loss despite narrowing deficits.
  • Decreased profitability in logistics and lower margin retail impact segments.
  • Macroeconomic and currency volatility affect international revenue.