Alibaba Reports 78% Jump in Attributable Profit for Q2

Alibaba's attributable profit soared 78% in Q2, driven by growth in its cloud computing and digital media and entertainment segments. The company's total revenue increased by 13% year-over-year. Alibaba's e-commerce business, including its retail and wholesale segments, saw revenue growth of 8% and 4%, respectively.

Alibaba Group Holding Limited's attributable profit surged 78% in the second quarter (Q2) of 2025, driven by robust growth in its cloud computing and digital media and entertainment segments. The company's total revenue increased by 13% year-over-year (YoY), highlighting the significant impact of these growth drivers on its overall financial performance.

The company's cloud computing segment has been a key contributor to this growth, with increasing adoption of cloud-based solutions by businesses seeking to enhance their digital transformation journeys. According to a recent market report, the U.S. cloud computing market size was valued at USD 216.91 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 20.3% from 2024 to 2030 [1]. This growth is fueled by advancements in technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT).

Alibaba's digital media and entertainment segment also saw strong performance, with revenue growth in these segments contributing to the overall financial results. The company's e-commerce business, which includes its retail and wholesale segments, saw revenue growth of 8% and 4%, respectively. This growth underscores the company's ability to maintain market leadership in the competitive e-commerce landscape.

The increasing adoption of cloud computing solutions has been a significant driver of growth for Alibaba. According to the same market report, the Infrastructure as a Service (IaaS) segment is anticipated to witness a significant CAGR of 20.9% from 2024 to 2030 in the U.S. cloud computing market [1]. This growth is attributed to the increasing demand for reducing IT complexities, hiring a skilled workforce to manage IT infrastructures, and reducing deployment costs for data centers.

Alibaba's ability to leverage these growth opportunities has positioned it as a leader in the cloud computing and digital media sectors. As the market continues to evolve, Alibaba's focus on innovation and strategic investments in these segments is likely to drive further growth and profitability.

References:

[1] https://www.grandviewresearch.com/industry-analysis/us-cloud-computing-market-report