Alibaba Group reported better-than-expected Q2 results for the September 2025 quarter, sending U.S.-listed shares up more than 4% in premarket trading. Strong gains in cloud services, faster international commerce growth, and a surge of interest in its AI model Qwen all contributed to improved investor sentiment.
Key Highlights from Alibaba’s Q2 2025 Results
- Total Q2 Revenue: RMB 247.80 billion vs. estimates of RMB 242.65 billion
- Cloud Intelligence Group Revenue: RMB 39.82 billion vs. RMB 29.61 billion last year
- International Digital Commerce Revenue: RMB 34.80 billion vs. RMB 31.67 billion last year
- China E-Commerce Revenue: Up 16% YoY
- Net Income: RMB 20.61 billion
- Adjusted Net Income: RMB 10.35 billion
- Operating Margin: 2%
- EPS: RMB 1.09
- Adjusted EPS: RMB 0.55
Cloud & AI: Alibaba’s Strongest Growth Engines
Alibaba highlighted two core business drivers that continued to deliver strong growth this quarter:
- AI + Cloud Intelligence – Rapid expansion driven by enterprise adoption and AI workloads.
- Consumption Platforms – One-hour delivery investments boosted user activity across shopping apps.
The company said it will continue reinvesting profits and free cash flow into cloud, AI, and logistics infrastructure. Management also noted that near-term profitability may fluctuate as these investments grow.
Mainland Chinese Investors Keep Buying Alibaba Shares
Mainland investors have been aggressively accumulating Alibaba shares through the Southbound Hong Kong Stock Connect platform. They have bought the stock for seven straight sessions, raising their total ownership to 11.07%, slightly above Tencent’s level.
This makes Alibaba the most actively purchased stock via the Connect channel over the last 60 trading days.
AI Model Qwen Fueling Investor Excitement
Alibaba’s new AI model, Qwen, crossed 10 million downloads within one week, boosting the company’s position in China’s AI race. The strong AI traction helped push Alibaba shares up 4.7% on Monday, even before earnings were released.
Market Reaction
- U.S.-listed Alibaba shares +4% premarket
- Hong Kong-listed Alibaba shares also traded higher
- AI Insight sentiment: Bullish across BABA.N, BABA.O, and 9988.HK
What This Means for Investors
Alibaba’s Q2 results signal a positive turnaround driven by AI momentum, strong cloud revenue, improving consumption trends, and heavy mainland investor support. Near-term profit fluctuations may continue, but long-term growth drivers remain solid.
Frequently Asked Questions (FAQ)
Is Alibaba’s revenue growing?
Yes. Alibaba reported a strong 247.80 billion yuan in Q2 revenue, beating market expectations.
Why are investors buying Alibaba shares?
Mainland investors are bullish due to strong earnings, rapid cloud growth, and excitement around Alibaba’s AI model Qwen.
How did Alibaba’s cloud business perform?
Cloud Intelligence revenue grew sharply to RMB 39.82 billion, driven by higher AI workload demand.
Is Alibaba reinvesting in its business?
Yes. Alibaba stated it will reinvest profits into AI, cloud infrastructure, and consumption-driven platforms.
Be First to Comment