Alibaba reported non-GAAP earnings of 61 cents per ADS in Q2 of fiscal 2026, missing estimates by 7.58%. Revenues reached $34.8 billion, beating estimates by 1.09%. The company’s focus on consumption and AI + Cloud drove revenue growth, but investments in quick commerce impacted margins. Alibaba continues to advance its AI capabilities with the Qwen family of models.

In terms of revenue segments, Alibaba saw growth in various areas. The China E-commerce Group posted revenues of RMB 132.6 billion, up 16% year-over-year. Quick Commerce revenues grew 60% to RMB 29.7 billion. The International Digital Commerce Group generated RMB 32.4 billion. The Cloud Intelligence Group saw revenues of RMB 39.8 billion, up 34% year-over-year.

Operating expenses showed significant increases, with sales and marketing expenses totaling RMB 75.0 billion. Adjusted EBITDA was RMB 9.1 billion, down 78% year-over-year. Cash and cash equivalents stood at RMB 188.4 billion. Alibaba repurchased $1.3 billion worth of shares during the quarter. The company currently holds a Zacks Rank #5 (Strong Sell).

Investors can access Zacks’ AI Boom 2.0 report for insights into the next wave of AI investments. Alibaba’s stock analysis report and those of other companies in the Retail-Wholesale sector are available for free. The article originally published on Zacks Investment Research.

Read more at Nasdaq: BABA Q2 Earnings Miss Estimates, Revenues Increase Y/Y