Q1 26 EPS
$2.06
MISS 86.68%
Est. $15.47
Q1 26 Revenue
$34.57B
MISS 86.38%
Est. $253.81B
vs S&P Since Q1 26
-14.3%
TRAILING MARKET
BABA -2.6% vs S&P +11.7%
Market Reaction
Did BABA Beat Earnings? Q1 2026 Results
Alibaba delivered a deeply disappointing fiscal first quarter, with earnings per share of $2.06 falling 86.68% short of the $15.47 consensus estimate, while revenue of $34.57 billion missed expectations by 86.38% and declined 85.8% year over year, fi… Read more Alibaba delivered a deeply disappointing fiscal first quarter, with earnings per share of $2.06 falling 86.68% short of the $15.47 consensus estimate, while revenue of $34.57 billion missed expectations by 86.38% and declined 85.8% year over year, figures that reflect the dramatic scale distortion from disposed businesses including Sun Art and Intime rather than a true operational collapse. The more telling story lies beneath those headline numbers: Alibaba's aggressive push into quick commerce under the new Taobao Instant Commerce banner drove sales and marketing expenses to 21.5% of revenue from 13.3% a year ago, compressing adjusted EBITA by 14% and sending free cash flow to negative $18.82 billion as capital expenditures surged to $38.68 billion. The silver lining came from Cloud Intelligence Group, which accelerated to 26% revenue growth with AI-related products posting triple-digit gains for the eighth straight quarter, a momentum Alibaba says it will continue funding through heavy infrastructure investment as it bets on consumption and AI cloud as its twin engines of long-term growth.
Key Takeaways
- • Customer management revenue grew 10% driven by take rate improvement from software service fees and Quanzhantui penetration
- • Cloud Intelligence Group revenue grew 26% driven by public cloud and AI-related product adoption
- • AIDC nearly reached breakeven with loss narrowing from RMB 3.7 billion to RMB 59 million year-over-year
- • 88VIP membership surpassed 53 million with double-digit year-over-year growth
- • Like-for-like revenue growth of 10% excluding disposed Sun Art and Intime businesses
- • AliExpress Choice unit economics continued to improve through logistics optimization
BABA YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
BABA Revenue by Segment
With YoY comparisons, source: SEC Filings
“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. We generated substantial synergies from combining resources of our consumer platforms which resulted in new highs in monthly active consumers and daily order volume. Driven by robust AI demand, Cloud Intelligence Group experienced accelerated revenue growth, and AI-related product revenue is now a significant portion of revenue from external customers. Looking ahead, we remain committed to investing in our two strategic pillars of consumption and AI + Cloud to capture historic opportunities and drive long-term growth.”
— Eddie Wu, Q1 2026 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 | — | — | — | — | — |