Alibaba misses top and bottom line expectations in Q2

Investing.com -- Alibaba reported second-quarter top and bottom line that missed analyst expectations. Even so, the Chinese tech giant’s shares edged slightly higher in U.S. premarket trading following the report.

Alibaba posted earnings of RMB14.75 per share, missing analyst estimates of RMB15.47. Revenue came in at RMB247.7 billion, below the consensus forecast of RMB253.8 billion.

“This quarter, our strategic focus on consumption and AI + Cloud delivered strong growth. Our decisive investment in the quick commerce business achieved key milestones as we won consumer mindshare," said Eddie Wu, Chief Executive Officer of Alibaba Group.

"Our core businesses delivered strong revenue growth. Customer management revenue grew 10% and revenue from Cloud Intelligence Group grew 26%, with AI-related product revenue achieving triple-digit growth for the eighth consecutive quarter. The strength of our core businesses gives us confidence and resources to make significant investments in quick commerce and AI initiatives."

For the three months ended June 30, 2025, revenue from the AIDC division rose 19% year-on-year to RMB34.7 billion ($4.85 billion), supported by strength in cross-border businesses.

Cloud Intelligence Group delivered RMB33.4 billion ($4.66 billion), up 26% from a year earlier.

The China e-commerce group generated RMB140.1 billion ($12.46 billion) in total revenue during the quarter.

Alibaba’s adjusted EBITA for the period fell 14% to RMB38.8 billion ($5.42 billion), which the company primarily attributed to investment in “Taobao Instant Commerce.”

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