Alibaba beats Q4 earnings estimates with revenue growth in key segments

From Nasdaq: 2025-05-16 13:46:00

Alibaba (BABA) exceeded expectations in Q4 2025 with earnings of $1.73 per ADS, beating estimates by 16.89%. Revenues of $32.6 billion missed estimates by 1.49%. Strong performance in e-commerce, cloud, and international markets drove revenue growth. Shares rose 1.65% post-earnings, with a YTD increase of 46.2%, outperforming the sector.

Key segments driving revenue growth included Taobao and Tmall Group, China Commerce Retail, International Digital Commerce, and Local Services Group. Cloud Intelligence Group saw an 18% revenue increase. Alibaba also introduced Qwen3 series hybrid reasoning models. Digital Media and Entertainment Group revenues rose 12%, while all other segments saw varying growth rates contributing to a total revenue increase.

Operating details showed increased expenses in sales and marketing, but decreased in general and administrative expenses. Operating income rose 92.8%, with an expanded operating margin of 12%. Adjusted EBITDA grew 36% with an expanded margin of 14%. Cash and cash equivalents were $20 billion, short-term investments were $31.5 billion, and free cash flow was $516 million.

Alibaba currently holds a Zacks Rank #2 (Buy), with upcoming earnings reports from Advance Auto Parts, Costco Wholesale, and Canada Goose. Zacks names a top semiconductor stock poised for growth given the booming demand for AI, ML, and IoT. The global semiconductor market is projected to grow substantially, presenting opportunities for investors.



Read more at Nasdaq: Alibaba Q4 Earnings Surpass Estimates, Revenues Increase Y/Y