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Sentiment · FY2027 Q1
As of FY2026 Q4, the Tellvest earnings-call sentiment score for Alibaba Group Holding Limited (BABA) is 6/10, unchanged from the prior quarter.
Alibaba closed fiscal 2026 with reported group revenue of RMB 243.4 billion, held to low single-digit GAAP growth by the divestitures of Sun Art and Intime; excluding those units, management said revenue grew 11% year-over-year. The quarter's defining theme was aggressive AI-and-cloud reinvestment: Cloud Intelligence Group's external revenue growth accelerated to 40% with AI-related product revenue posting triple-digit growth for the 11th consecutive quarter, while total adjusted EBITA fell 84% as spending surged into cloud infrastructure, quick commerce and user experience. GAAP net income rose 96% to RMB 23.5 billion, but that increase was driven mainly by mark-to-market gains on equity investments rather than operations, and free cash flow swung to an outflow of RMB 17.3 billion. Management framed the outlay as building AI 'training' and 'inferencing' factories, guiding model-and-application services ARR to surpass RMB 10 billion in the June quarter and RMB 30 billion by year-end and signaling cloud growth should accelerate further. The result is a company deliberately sacrificing near-term margins for a compute-and-consumption expansion it argues is now translating into tangible results.
Scored from Alibaba Group Holding Limited’s FY2026 Q4 earnings call. The newest quarter is available with Tellvest Pro.
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| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|
| FY2025 Q2 | $236.50B | +5.2% | $18.16 | +55.5% | 14.9% | 18.6% | $13.86B |
| FY2025 Q3 | $280.15B | +7.6% | $20.40 | +259.2% | 14.7% | 17.5% | $69.58B |
| FY2025 Q4 | $236.45B | +6.6% | $5.20 | +306.3% | 12.0% | 5.3% | $-27.82B |
| FY2026 Q1 | $247.65B | +1.8% | $18.00 | +81.5% | 14.1% | 16.4% | $-17.72B |
| FY2026 Q2 | $247.79B | +4.8% | $8.72 | -52.0% | 2.2% | 8.5% | $-21.40B |
| FY2026 Q3 | $284.84B | +1.7% | $6.64 | -67.5% | 7.1% | 5.8% | $6.76B |
| FY2026 Q4 | $243.38B | +2.9% | $10.40 | +100.0% | -0.3% | 10.5% | $-18.10B |
| FY2027 Q1 | $268.19B | +8.3% | $3.68 | -79.6% | 7.2% | 3.9% | $-44.73B |