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Alibaba September 2025 earnings: revenue beats, profit down 53%

Alibaba September 2025 earnings came in mixed: revenue reached roughly RMB 247.8B (+5% YoY) and topped estimates, but net income fell 53% to about RMB 20.6B. According to company filings and media reports, sales beat an LSEG consensus near RMB 242.65B as demand held up in core commerce.

Alibaba September 2025 earnings drivers: cloud and AI

In the context of Alibaba September 2025 earnings, cloud and AI underpinned the top line. However, reinvestment and competitive intensity pressured margins, according to available reports.

Cloud engine: 34% growth on AI demand

Cloud Intelligence Group revenue rose 34% year over year to RMB 39.824B. Moreover, AI‑related product revenue logged triple‑digit growth for the ninth straight quarter. Notably, alibaba cloud revenue 34% growth highlights how AI workloads are scaling across industries. In short, alibaba cloud revenue 34% shows the segment as the growth engine this quarter.

RMB 380B AI/cloud investment plan

Management reaffirmed alibaba 380 billion ai investment over three years and suggested spending could rise with demand. Consequently, this plan secures compute, model training, and data infrastructure at scale. As a result, alibaba 380 billion ai investment looks like a floor, not a ceiling, if AI adoption accelerates further.

Profitability impact: reinvestment and capex

Over the last four quarters, Alibaba deployed about RMB 120B toward AI and cloud infrastructure. Therefore, near‑term profitability may fluctuate as profits and free cash flow are recycled into growth. That dynamic helps explain why, despite strong cloud momentum, alibaba net income down 53% in the period.

Timeline: September 2025 results and AI milestones

Start with the september 2025 quarter results: revenue increased 5% to roughly RMB 247.8B while alibaba net income down 53% to around RMB 20.6B. During the same window, cloud AI products sustained triple‑digit growth for a ninth consecutive quarter. Meanwhile, the Qwen AI app 10 million milestone within its first week signaled rapid consumer traction. Furthermore, the Qwen AI app 10 million figure reinforces downstream demand that ultimately pulls more cloud compute.

What’s next

Watch the rollout pace of the RMB 380B+ program, subsequent capex levels, and the sustainability of cloud’s growth. Additionally, track pricing environments and any signs of margin stabilization in commerce. For comparability, line up upcoming prints against the september 2025 quarter results baseline. As investors digest Alibaba September 2025 earnings, focus on whether cloud growth and reinvestment translate into durable, higher‑quality revenue.