Alibaba Group Holding Limited (BABA,9988.HK) reported Tuesday sharply lower profit in its second quarter, even as revenues increased from last year mainly with strong growth in Alibaba China E-commerce Group.
In the pre-market activity, the shares were gaining around 4.4 percent to trade at $167.88.
In the second quarter, net income attributable to ordinary shareholders fell 52 percent to RMB20.99 billion or $2.95 billion from last year's RMB43.87 billion, primarily attributable to the decrease in income from operations.
Earnings per share were RMB1.09 or $0.15, compared to RMB2.27 a year ago. Earnings per ADS was RMB8.75 or $1.23, compared to RMB18.17 last year.
Adjusted net income in the quarter was RMB10.35 billion or $1.45 billion, compared to RMB36.52 billion a year ago. Adjusted earnings per share was RMB0.55 or $0.08, a decrease of 71 percent from RMB1.88 last year. Adjusted earnings per ADS was RMB4.36 or $0.61, compared to RMB15.06 in the prior year.
In the quarter ended September 30, income from operations plunged 85 percent year-over-year to RMB5.37 billion or $754 million.
Adjusted EBITA decreased 78 percent year-over-year to RMB9.07 billion or $1.27 billion, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group.
Revenue, however, increased 5 percent to RMB247.80 billion or $34.81 billion from RMB236.50 billion a year earlier. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis improved 15 percent year-over-year.
Total Alibaba China E-commerce Group's revenues climbed 16 percent from last year to RMB132.58 billion or $18.62 billion.
Alibaba International Digital Commerce Group's revenue from AIDC grew 10 percent year-over-year to RMB34.80 billion or $4.89 billion.
Cloud Intelligence Grou's revenue climbed 34 percent year-over-year to RMB39.82 billion or $5.59 billion, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.
Further, the company noted that the remaining amount of Board authorization for share repurchase program, which is effective through March 2027, was $19.1 billion as of September 30, 2025.
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