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- **Revenue Growth**: 15% YoY total revenue, 34% cloud growth, and triple-digit AI product expansion highlight strategic momentum.
- **AI Leadership**: Qwen app surpasses 10M downloads; AI cloud market share exceeds competitors combined, driven by full-stack capabilities.
- **Quick Commerce Turnaround**: UE loss halved, 75% non-beverage orders, and 3,500 brands onboarded for on-demand retail.
- **Financial Focus**: RMB 21.8B free cash flow reinvested in AI and quick commerce; cloud AI-related products >20% of external revenue.
- **Future Growth**: 3-year RMB 1T GMV target for quick commerce; $380B+ CapEx for AI infrastructure to meet surging demand.

**【CEO Summary Section】**
- Total revenue grew 15% YoY (excluding Sun Art and Intime), driven by 34% cloud revenue growth and triple-digit AI-related product expansion.
- AI + Cloud strategy: Qwen3-Max ranks globally in coding tasks; AI cloud market share surpasses competitors combined. Qwen app reached 10M downloads in first week, targeting enterprise and consumer AI solutions.
- Quick Commerce: 60% revenue growth, UE loss halved since July, with 75% non-beverage orders and 3,500 brands onboarded for on-demand retail.
- Consumption ecosystem: Amap's DAU hits 360M, Street Stars feature boosts engagement; Taobao app MAU growth supported by quick commerce synergy.

**【CFO Financial Commentary】**
- Total revenue: RMB 247.8B; adjusted EBITDA down 78% due to quick commerce investments, offset by e-commerce and cloud growth.
- GAAP net income: RMB 20.6B (-53% YoY); operating cash flow: RMB 10.1B (-68% YoY) due to strategic investments.
- Free cash flow outflow: RMB 21.8B for quick commerce and AI infrastructure; net cash: RMB 41B supports reinvestment.
- Cloud: External customer revenue +29%, AI-related products >20% of external revenue; EBITDA margin stable at 9%.
- Quick Commerce: Adjusted EBITDA loss narrowed; 30% GMV growth in groceries/healthcare via Taobao instant commerce.

**【Q&A Highlights】**
- **Cloud Growth Drivers**: Enterprise AI adoption across product development/manufacturing; compute demand from model training/inference. Supply chain constraints limit server deployment pace.
- **Quick Commerce Efficiency**: 50% UE loss reduction via order mix (75% non-beverage) and scale economies; 3-year goal of RMB 1T GMV through category expansion.
- **CapEx Outlook**: $380B 3-year plan may be undersized; prioritizes foundation model training, Bailian inference, and high-value external customers.
- **ROI on AI Investments**: Focus on token utilization efficiency; internal use cases (Amap, Cainiao) and external demand for full-stack AI services drive returns.
- **Consumption Synergies**: Amap, Fliggy, and local services integrate with e-commerce to capture broader consumption market share.

Alibaba Group Holding Limited(BABA)-20251125-2026 Q2 Earnings call transcript

Core Commerce

Cainiao Smart Logistics Network Limited

Local Services Group

All others

Cloud Computing and Internet Infrastructure

Digital Media and Entertainment Group

Innovation Initiatives and Others

Unallocated

Consolidation Adjustments

Cloud Intelligence Group

BABA

BABA fundamentals

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