Q3 25 EPS
$2.93
MISS 84.88%
Est. $19.38
Q3 25 Revenue
$38.38B
MISS 86.24%
Est. $278.93B
vs S&P Since Q3 25
-22.6%
TRAILING MARKET
BABA -2.4% vs S&P +20.1%
Market Reaction
Did BABA Beat Earnings? Q3 2025 Results
Alibaba delivered a sharply disappointing fiscal third quarter, with earnings per share of $2.93 missing the $19.38 consensus estimate by 84.88% and revenue of $38.38 billion falling 85.3% year-over-year while trailing the $278.93 billion consensus b… Read more Alibaba delivered a sharply disappointing fiscal third quarter, with earnings per share of $2.93 missing the $19.38 consensus estimate by 84.88% and revenue of $38.38 billion falling 85.3% year-over-year while trailing the $278.93 billion consensus by 86.24%, gaps largely attributable to currency conversion differences between RMB-reported results and USD-denominated estimates. The underlying operational story was more constructive: consolidated revenue rose 8% in local currency terms to RMB 280.15 billion, driven by Taobao and Tmall's 9% customer management revenue growth and a standout performance from Cloud Intelligence Group, where AI-related revenue growth exceeded 100% for the sixth straight quarter. Free cash flow declined 31% to $39.02 billion as capital expenditures surged to $31.37 billion, reflecting aggressive cloud infrastructure buildout that Alibaba expects to sustain as it forecasts continued acceleration in AI-driven cloud demand. Divestitures of Sun Art and Intime signal a sharper focus on core e-commerce and cloud operations going forward.
Key Takeaways
- • Customer management revenue growth of 9% driven by online GMV growth and take rate improvement from software service fee and Quanzhantui adoption
- • 88VIP membership grew double digits to 49 million members
- • Cloud revenue re-accelerated to 13% growth driven by AI-related products
- • AIDC revenue grew 32% driven by AliExpress and Trendyol cross-border performance
- • Strong order growth at Amap and Ele.me driving Local Services 12% revenue increase
- • Cost of revenue as percentage of revenue improved from 60.0% to 58.0%
- • Share-based compensation expense declined 38% year-over-year
BABA YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
BABA Revenue by Segment
With YoY comparisons, source: SEC Filings
“This quarter's results demonstrated substantial progress in our 'user first, AI-driven' strategies and the re-accelerated growth of our core businesses. During this quarter, customer management revenue at Taobao and Tmall Group grew 9% as a result of initiatives to enhance user experience and effective monetization. Our Cloud revenue growth reignited to double digits at 13%, with AI-related product revenue achieving triple-digit growth for the sixth consecutive quarter. Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate. We will continue to execute against our strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth.”
— Eddie Wu, Q3 2025 Earnings Press Release
BABA Earnings Trends
BABA vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
BABA EPS Trend
Earnings per share: estimate vs actual
BABA Revenue Trend
Quarterly revenue: estimate vs actual
BABA Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $1.01 | — | $40.73B | — |
| Q2 26 MISS | $5.78 | $1.23 | -78.71% | $34.81B | -85.69% |
| Q1 26 MISS | $15.47 | $2.06 | -86.68% | $34.57B | -86.38% |
| Q3 25 MISS | $19.38 | $2.93 | -84.88% | $38.38B | -86.24% |
| Q2 25 | — | — | — | — | — |