By bigbreakingwire 
Key Financial Highlights:
Adjusted EPS: ¥21.39, beating estimates of ¥19.12, up 13% YoY.
Revenue: ¥280.15 billion, exceeding expectations of ¥277.37 billion, up 8% YoY.
Adjusted EBITDA: ¥62.05 billion, surpassing forecasts of ¥60.42 billion, up 4% YoY.
Business Segment Performance:
Cloud Intelligence Group:
Revenue grew 13% YoY to ¥31.74 billion, exceeding estimates.
Adjusted EBITA rose 33% YoY to ¥3.14 billion, highlighting strong AI-driven demand.
Taobao & Tmall Group:
Revenue increased 5% YoY to ¥136.09 billion.
Customer management revenue rose 9% YoY to ¥100.79 billion.
Direct sales revenue dropped 9% YoY to ¥28.73 billion.
Adjusted EBITA saw 2% YoY growth to ¥61.08 billion.
Alibaba International Digital Commerce Group:
Revenue surged 32% YoY to ¥37.76 billion.
Retail commerce grew 36% YoY to ¥31.55 billion, while wholesale saw an 18% YoY rise to ¥6.2 billion.
However, adjusted EBITA posted a ¥4.95 billion loss, widening 57% YoY.
Cainiao Smart Logistics:
Revenue declined 1% YoY to ¥28.24 billion.
Adjusted EBITA dropped 76% YoY to ¥235 million.
Local Services Group:
Revenue climbed 12% YoY to ¥16.99 billion.
Losses narrowed 71% YoY to ¥596 million.
Digital Media & Entertainment:
Revenue grew 8% YoY to ¥5.44 billion.
Losses reduced 40% YoY to ¥309 million.
Other Segments:
Revenue increased 13% YoY to ¥53.1 billion.
Losses remained stable at ¥3.16 billion.
Other Key Metrics:
Net income skyrocketed 333% YoY to ¥46.43 billion.
Non-GAAP net income rose 6% YoY to ¥51.07 billion.
Income from operations surged 83% YoY to ¥41.21 billion.
Operating margin expanded to 15% from 9% YoY.
Free cash flow fell 31% YoY to ¥39.02 billion.
Net cash from operations rose 10% YoY to ¥70.92 billion.
Strategic and Shareholder Updates:
Repurchased 15 million ADSs (~¥1.3 billion), reducing total outstanding ADSs by 0.6%.
Issued $5 billion in senior unsecured notes to extend debt maturities.
Sold stakes in Sun Art and Intime for a total of ¥19.7 billion, streamlining non-core assets.
Leadership Commentary:
CEO Eddie Wu highlighted the company’s “user-first, AI-driven” strategy, with cloud business benefiting from six consecutive quarters of triple-digit AI growth. CFO Toby Xu emphasized financial discipline while investing in core segments, citing positive EBITA growth in Taobao and Tmall and an improved balance sheet through asset sales and buybacks.
Alibaba’s Q3 results showcase its strong cloud performance, international expansion, and disciplined financial management, positioning the company for continued growth.
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