\n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nCash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n BUSINESS AND STRATEGIC UPDATES<\/b><\/p>\n \nDuring the quarter ended June 30, 2026, we undertook strategic combinations of certain businesses to realize synergies across our commerce platforms and strengthen our full-stack AI capabilities. Alibaba China E-commerce Group, Alibaba International Digital Commerce Group, together with Freshippo, were integrated to form Alibaba E-commerce Group. Cloud Intelligence Group and T-Head were combined to form AI Cloud and Compute Services. In addition, AI model labs, Qwen Consumer Business Group, QwenWork, all previously included in \u201cAll Others\u201d, were consolidated to form AI Labs and Applications. Based on this strategic re-alignment, starting from this quarter, our segment reporting will present the following: (1) Alibaba E-commerce Group, (2) AI Cloud and Compute Services, (3) AI Labs and Applications, and (4) All Others.<\/p>\n Alibaba E-commerce Group<\/span><\/b><\/p>\n\nThe new Alibaba E-commerce Group reflects our strategic focus on unlocking significant synergies across our domestic and cross-border e-commerce businesses. Starting from this quarter, we will present Alibaba E-commerce Group\u2019s revenue as the following: (1) China E-commerce, (2) China Quick Commerce, (3) International E-commerce, and (4) Global Wholesale.<\/p>\n \nWe are deepening the integration of AI capabilities into our e-commerce platforms to enhance experiences for both consumers and merchants. On the consumer side, Qwen Shopping Assistant, a one-stop AI agent which delivers end-to-end assistance across the entire shopping journey from consumer idea inspiration to after-sales services on the Taobao app, demonstrated rapid growth in user adoption since its launch in May. For merchants, we have enhanced our merchant operations management platform with skill-based agentic capabilities that seamlessly automate end-to-end workflows, from product listing and store management to advertising and customer services.<\/p>\n \nIn our China E-commerce business, CMR decreased 7% year-over-year during the quarter. Excluding the contra revenue impact from the new business development program, on a like-for-like basis, CMR would have grown 1% year-over-year. The slow-down in revenue growth was primarily due to weaker transaction activities. We saw incremental customer management revenue driven by the increase in monthly active consumers on the Taobao app because of our growth of quick commerce business.<\/p>\n \nThe China Quick Commerce business includes Taobao Instant Commerce, Freshippo, and other on-demand delivery business. Taobao Instant Commerce continued to improve its unit economics quarter-over-quarter, driven by higher average order value and enhanced fulfillment logistics efficiency, while maintaining market share. We improved the order mix through an increasing focus on high-value food orders and non-food categories. Meanwhile, Freshippo maintained robust year-over-year growth momentum in orders and revenue, driven by its expanding footprint into emerging cities and counties, as well as deeper collaboration with Taobao Instant Commerce to offer differentiated grocery and fresh produce products.<\/p>\n \nThe number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year to approximately 64 million as of June 30, 2026. We remain focused on the growth and retention of 88VIP members through enhanced value proposition to our most valued customers.<\/p>\n \nIn our International E-commerce business, AliExpress achieved operating profit this quarter, driven by logistics optimization and cost efficiency enhancement. We continued to diversify and enrich our product offerings by leveraging the supply chain advantages of the Alibaba ecosystem. The proportion of AliExpress\u2019 sales that are contributed by local product supplies has continued to increase significantly year-over-year.<\/p>\n AI Cloud and Compute Services<\/span><\/b><\/p>\n\nFor the quarter ended June 30, 2026, revenue from AI Cloud and Compute Services was RMB48,437 million (US$7,139 million). The year-over-year growth of total revenue and revenue from external customers both accelerated to 45%. This momentum was primarily driven by the increasing adoption of AI-related products. AI-related product revenue continued to show strong momentum, achieving RMB12,376 million (US$1,824 million) and delivering the twelfth consecutive quarter of triple-digit year-over-year growth.<\/p>\n Cloud<\/i><\/p>\n \nAlibaba Cloud continues to lead the market, driven by growing customer adoption of our full-stack AI capabilities across AI agents, AI models, AI cloud infrastructure, and orchestration software that manages heterogeneous chip clusters, including our own proprietary chips. Omdia\u2019s \u201cAI Cloud Market: China – 2025\u201d reported that Alibaba Cloud ranked first in China\u2019s AI cloud market with the largest share of 38.1%, highlighting our ability to outperform industry and lead China’s fast-growing AI cloud market with our comprehensive full-stack AI capabilities.<\/p>\n Chip Design \u2013 T-Head Semiconductor (\u201cT-Head\u201d)<\/i><\/p>\n \nT-Head has established a portfolio of proprietary silicon, spanning GPU, CPU, storage and networking chips. This comprehensive chip portfolio enables integrated hardware optimization across compute, storage and networking, strengthening our ability to deliver high performance and efficiency in AI infrastructure.<\/p>\n \nThe Zhenwu chips, including Zhenwu M890, the latest AI processor, have achieved broad commercial adoption via Alibaba Cloud services from more than 650 external customers across over 20 industries, including autonomous driving, Internet, and financial services. This broad adoption demonstrates its ability to support AI workloads from training and fine-tuning to inference.<\/p>\n AI Labs and Applications<\/span><\/b><\/p>\nModel<\/i><\/p>\n \nOur model development has demonstrated a combination of capability and fast iteration, with our frontier language, coding, video, audio, image and music models all delivering top-tier performance. In August, we launched our flagship foundation model Qwen3.8-Max within three months of its prior version, and we opened its model weights with 2.4 trillion parameters. Qwen3.8-Max delivers comprehensive improvements across coding, real-world work, research, long-horizon tasks and multimodal agents, enabling it to complete complex tasks with greater reliability.<\/p>\n QwenWork<\/i><\/p>\n \nQwenWork is our flagship unified AI-native workforce agent. Through advanced AI models and agentic capabilities, QwenWork is designed to unlock productivity at the organizational level and drive operating efficiency. It also supports individual users with everyday workplace tasks. On distribution, QwenWork is deeply integrated with Alibaba Cloud and DingTalk\u2019s ecosystem, providing a natural gateway to Alibaba’s extensive enterprise user base and established workplace workflows. Its reach is further extended through broad integration with third-party business workflows and productivity platforms.<\/p>\n Qwen App<\/i><\/p>\n \nQwen app, our flagship consumer-facing AI application, is adding diverse value-added offerings to meet user demands. Qwen app deepens its integration with core services across our ecosystem, including Taobao and Tmall, and Taobao Instant Commerce, to further expand the customer reach of our e-commerce business and enable a wider range of agentic use cases. 250 million users have had their first AI-driven shopping experience through Qwen app\u2019s agentic features across an expanding range of e-commerce and other services since the launch of Qwen app. The integration also creates a flywheel across our AI and e-commerce businesses: broader AI adoption unlocks new growth opportunities, while feedback from real-world use cases enables us to enhance our models and user experiences.<\/p>\n Share Repurchases<\/span><\/b><\/p>\n\nDuring the quarter ended June 30, 2026, we repurchased a total of 13.4 million ordinary shares (equivalent to approximately 1.7 million ADSs) for a total of US$162 million. These purchases were made in the U.S. market under our share repurchase program.<\/p>\n Capital Expenditures<\/span><\/b><\/p>\n\nDuring the quarter ended June 30, 2026, capital expenditures were RMB67,678 million (US$9,975 million), an increase of 75% compared to RMB38,676 million in the same quarter of 2025, reflecting our continued investments in AI infrastructure to meet strong and growing customer demand. The significant year-over-year increase was due to several reasons, including fluctuations in procurement cycles, increase in CPU-compute capacity driven by anticipated growing customer adoption of AI agents, and higher pricing of a broad range of chip components.<\/p>\n JUNE QUARTER SUMMARY FINANCIAL RESULTS<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n RMB<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n US$<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n YoY %
\n
Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages and per share amounts)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue<\/p>\n<\/td>\n | | \n\n \n247,652<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n268,953<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n39,639<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n9%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nIncome from operations<\/p>\n<\/td>\n | | \n\n \n34,988<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n15,161<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2,234<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(57)%(2)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOperating margin<\/p>\n<\/td>\n | | \n\n \n14%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITDA(1)<\/sup><\/p>\n<\/td>\n | \n\n \n45,735<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n39,143<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n5,769<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(14)%(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITDA margin(1)<\/sup><\/p>\n<\/td>\n | \n\n \n18%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n15%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITA(1)<\/sup><\/p>\n<\/td>\n | \n\n \n38,844<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n27,329<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n4,028<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(30)%(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITA margin(1)<\/sup><\/p>\n<\/td>\n | \n\n \n16%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n10%<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet income<\/p>\n<\/td>\n | | \n\n \n42,382<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n10,444<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,539<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(75)%(4)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet income attributable to ordinary shareholders<\/p>\n<\/td>\n | | \n\n \n43,116<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n10,537<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1,553<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(76)%(4)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-GAAP net income(1)<\/sup><\/p>\n<\/td>\n | \n\n \n33,510<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n20,715<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3,053<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(38)%(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDiluted earnings per share(5)<\/sup><\/p>\n<\/td>\n | \n\n \n2.25<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.46<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.07<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(79)%(4)(6)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nDiluted earnings per ADS(5)<\/sup><\/p>\n<\/td>\n | \n\n \n17.98<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3.71<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.55<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(79)%(4)(6)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-GAAP diluted earnings per share(1)(5)<\/sup><\/p>\n<\/td>\n | \n\n \n1.84<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.07<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.16<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(42)%(3)(6)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNon-GAAP diluted earnings per ADS(1)(5)<\/sup><\/p>\n<\/td>\n | \n\n \n14.75<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n8.52<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.26<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(42)%(3)(6)<\/sup><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nSee the sections entitled \u201cNon-GAAP Financial Measures\u201d and \u201cReconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures\u201d for more information about the non-GAAP measures referred to within this results announcement.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year decrease was primarily due to the decrease in adjusted EBITA, impairment of goodwill and a provision recorded this year (see the section entitled \u201cJune Quarter Other Financial Results\u201d).<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year decreases were primarily attributable to the investment in technology, partly offset by improved operating results in our Cloud business, as well as enhanced operating efficiencies across various businesses.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(4)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year decreases were primarily attributable to the decrease in income from operations, decrease in net gains from disposal of investments, and the decrease in net gain from mark-to-market changes of our equity investments, while net income attributable to ordinary shareholders and earnings per share\/ADS would further take into account the net loss attributable to noncontrolling interests. We excluded non-cash share-based compensation expense, gains\/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(5)<\/p>\n<\/td>\n | | \n\n \nEach ADS represents eight ordinary shares.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(6)<\/p>\n<\/td>\n | | \n\n \nThe year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n JUNE QUARTER SEGMENT RESULTS<\/b><\/p>\n \nRevenue for the quarter ended June 30, 2026 was RMB268,953 million (US$39,639 million), an increase of 9% year-over-year compared to RMB247,652 million in the same quarter of 2025.<\/p>\n \nThe following table sets forth a breakdown of our revenue by segment for the periods indicated:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended June 30,<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n US$<\/b><\/p>\n<\/td>\n | | \n\n YoY %
\n
Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAlibaba E-commerce Group:<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nChina E-commerce<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n– Customer management<\/p>\n<\/td>\n | | \n\n \n89,199<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n82,547<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n12,166<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(7)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n– Direct sales, logistics and others(2)<\/sup><\/p>\n<\/td>\n | \n\n \n31,675<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n28,353<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4,179<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(10)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n120,874<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n110,900<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n16,345<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(8)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nChina Quick Commerce(3)<\/sup><\/p>\n<\/td>\n | \n\n \n36,725<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n53,295<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7,855<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n45%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInternational E-commerce<\/p>\n<\/td>\n | | \n\n \n28,177<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n27,761<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4,091<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(1)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGlobal Wholesale<\/p>\n<\/td>\n | | \n\n \n13,036<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n13,906<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n2,049<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal Alibaba E-commerce Group<\/p>\n<\/td>\n | | \n\n \n198,812<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n205,862<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n30,340<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAI Cloud and Compute Services<\/p>\n<\/td>\n | | \n\n \n33,418<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n48,437<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7,139<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n45%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAI Labs and Applications<\/p>\n<\/td>\n | | \n\n \n2,882<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,338<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n492<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n16%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAll others<\/p>\n<\/td>\n | | \n\n \n28,629<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n28,803<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4,245<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnallocated<\/p>\n<\/td>\n | | \n\n \n519<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n783<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n116<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInter-segment elimination<\/p>\n<\/td>\n | | \n\n \n(16,608<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(18,270<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(2,693<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Consolidated revenue<\/b><\/p>\n<\/td>\n | | \n\n 247,652<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 268,953<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 39,639<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 9%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nDuring the quarter ended June 30, 2026, we have implemented a new segment structure, to reflect the strategic re-alignment to realize synergies across our commerce platforms, strengthen our integrated AI infrastructure offering, and accelerate the development of our AI products and services, as follows:<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \ni) Alibaba E-commerce Group, a unified group formed by combining Alibaba China E-Commerce Group, Alibaba International Digital Commerce Group, together with Freshippo and certain commerce businesses within Cainiao.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \nii) AI Cloud and Compute Services, combining Cloud Intelligence Group with T-Head to strengthen the infrastructure and computing layer of our full-stack AI capabilities.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \niii) AI Labs and Applications, where AI model labs, Qwen Consumer Business Group and QwenWork, formerly classified under All others, were brought together to integrate the full value chain from AI model innovation through to consumer applications and enterprise productivity solutions.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \niv) All others include mainly Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Lingxi Games and other technology businesses.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \nAccordingly, the above presentation has been recast to conform with the new reporting structure to reflect how our chief operating decision maker (\u201cCODM\u201d) reviews information under this new structure.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nDirect sales, logistics and others revenue under China E-commerce business of Alibaba E-commerce Group primarily represents direct sales businesses of Tmall Supermarket (excluding on-demand delivery business), Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and other value-added services.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nChina Quick Commerce revenue includes revenue generated by Taobao Instant Commerce, Freshippo, and on-demand delivery business of Tmall Supermarket.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThe following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended June 30,<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n US$<\/b><\/p>\n<\/td>\n | | \n\n YoY %
\n
Change<\/b>(3)<\/sup><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAlibaba E-commerce Group<\/p>\n<\/td>\n | | \n\n \n39,988<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n39,749<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5,858<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(1)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAI Cloud and Compute Services<\/p>\n<\/td>\n | | \n\n \n2,419<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5,628<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n830<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n133%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAI Labs and Applications<\/p>\n<\/td>\n | | \n\n \n(3,224<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(13,861<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(2,043<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(330)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAll others<\/p>\n<\/td>\n | | \n\n \n687<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(3,343<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(493<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \nN\/A<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnallocated(2)<\/sup><\/p>\n<\/td>\n | \n\n \n(419<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(163<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(24<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInter-segment elimination<\/p>\n<\/td>\n | | \n\n \n(607<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(681<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(100<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Consolidated adjusted EBITA<\/b><\/p>\n<\/td>\n | | \n\n 38,844<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 27,329<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 4,028<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (30)%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nLess: Non-cash share-based compensation expense<\/p>\n<\/td>\n | | \n\n \n(3,194<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(2,962<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(437<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLess: Amortization of intangible assets<\/p>\n<\/td>\n | | \n\n \n(807<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(665<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(98<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLess: Impairment of goodwill, and others<\/p>\n<\/td>\n | | \n\n \n145<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(8,541<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n(1,259<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income from operations<\/b><\/p>\n<\/td>\n | | \n\n 34,988<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 15,161<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2,234<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (57)%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nDuring the quarter ended June 30, 2026, we have implemented a new segment structure, to reflect the strategic re-alignment to realize synergies across our commerce platforms, strengthen our integrated AI infrastructure offering, and accelerate the development of our AI products and services, as follows:<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \ni) Alibaba E-commerce Group, a unified group formed by combining Alibaba China E-Commerce Group, Alibaba International Digital Commerce Group, together with Freshippo and certain commerce businesses within Cainiao.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \nii) AI Cloud and Compute Services, combining Cloud Intelligence Group with T-Head to strengthen the infrastructure and computing layer of our full-stack AI capabilities.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \niii) AI Labs and Applications, where AI model labs, Qwen Consumer Business Group and QwenWork, formerly classified under All others, were brought together to integrate the full value chain from AI model innovation through to consumer applications and enterprise productivity solutions.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \niv) All others include mainly Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Lingxi Games and other technology businesses.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \nAccordingly, the above presentation has been recast to conform with the new reporting structure to reflect how our chief operating decision maker (\u201cCODM\u201d) reviews information under this new structure.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nUnallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nFor a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Alibaba E-commerce Group<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n\n- China E-commerce Business\n
<\/i><\/b>Revenue from our China E-commerce business in the quarter ended June 30, 2026 was RMB110,900 million (US$16,345 million), a decrease of 8% compared to RMB120,874 million in the same quarter of 2025.<\/p>\n Customer management revenue decreased by 7% year-over-year. Excluding the contra revenue impact from the new business development program, customer management revenue on a like-for-like basis would have grown by 1% year-over-year.<\/p>\n Direct sales, logistics and others revenue under China E-commerce business in the quarter ended June 30, 2026 was RMB28,353 million (US$4,179 million), a decrease of 10% compared to RMB31,675 million in the same quarter of 2025, reflecting our planned reduction of certain direct sales businesses.<\/p>\n<\/li>\n<\/ul>\n \n- China Quick Commerce Business\n
<\/i><\/b>Revenue from our China Quick Commerce business in the quarter ended June 30, 2026 was RMB53,295 million (US$7,855 million), an increase of 45% compared to RMB36,725 million in the same quarter of 2025, primarily driven by Freshippo and Taobao Instant Commerce.<\/p>\n<\/li>\n<\/ul>\n \n- International E-commerce Business\n
<\/i><\/b>Revenue from our International E-commerce business in the quarter ended June 30, 2026 was RMB27,761 million (US$4,091 million), a decrease of 1% compared to RMB28,177 million in the same quarter of 2025.<\/p>\n<\/li>\n<\/ul>\n \n- Global Wholesale Business\n
<\/i><\/b>Revenue from our Global Wholesale business in the quarter ended June 30, 2026 was RMB13,906 million (US$2,049 million), an increase of 7% compared to RMB13,036 million in the same quarter of 2025, primarily due to the increase in revenue generated by cross-border related value-added services.<\/p>\n<\/li>\n<\/ul>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAlibaba E-commerce Group adjusted EBITA decreased by 1% to RMB39,749 million (US$5,858 million) in the quarter ended June 30, 2026, compared to RMB39,988 million in the same quarter of 2025, primarily due to our increased investment in user experiences and technology, partly offset by improved operating performance across various businesses.<\/p>\n AI Cloud and Compute Services<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n \nRevenue from our AI Cloud and Compute Services in the quarter ended June 30, 2026 was RMB48,437 million (US$7,139 million), an increase of 45% compared to RMB33,418 million in the same quarter of 2025, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.<\/p>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAI Cloud and Compute Services adjusted EBITA increased by 133% to RMB5,628 million (US$830 million) in the quarter ended June 30, 2026, compared to RMB2,419 million in the same quarter of 2025, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.<\/p>\n AI Labs and Applications<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n \nRevenue from AI Labs and Applications in the quarter ended June 30, 2026 was RMB3,338 million (US$492 million), an increase of 16% compared to RMB2,882 million in the same quarter of 2025.<\/p>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAI Labs and Applications adjusted EBITA was a loss of RMB13,861 million (US$2,043 million) in the quarter ended June 30, 2026, compared to a loss of RMB3,224 million in the same quarter of 2025, primarily due to our increased investment in AI capabilities, and higher inference cost related to Qwen app.<\/p>\n All Others<\/span><\/b><\/p>\n(i) Segment revenue<\/b><\/p>\n \nRevenue from All others segment was RMB28,803 million (US$4,245 million) in the quarter ended June 30, 2026, an increase of 1% compared to RMB28,629 million in the same quarter of 2025.<\/p>\n (ii) Segment adjusted EBITA<\/b><\/p>\n \nAdjusted EBITA from All others segment in the quarter ended June 30, 2026 was a loss of RMB3,343 million (US$493 million), compared to a profit of RMB687 million in the same quarter of 2025, primarily due to our increased investment in technology businesses.<\/p>\n JUNE QUARTER OTHER FINANCIAL RESULTS<\/b><\/p>\n Costs and Expenses<\/span><\/b><\/p>\n\nThe following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended June 30,<\/b><\/p>\n<\/td>\n | | \n\n % of
\n
Revenue
\n
YoY
\n
change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n % of
\n
Revenue<\/b><\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n US$<\/b><\/p>\n<\/td>\n | | \n\n % of
\n
Revenue<\/b><\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Costs and expenses:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of revenue<\/p>\n<\/td>\n | | \n\n \n136,429<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n55.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n166,096<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n24,480<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n61.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n6.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nProduct development expenses<\/p>\n<\/td>\n | | \n\n \n15,001<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n22,529<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,320<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n8.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n2.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales and marketing expenses<\/p>\n<\/td>\n | | \n\n \n53,178<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n21.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n47,625<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7,019<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n17.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(3.8<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGeneral and administrative expenses<\/p>\n<\/td>\n | | \n\n \n7,398<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n12,708<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1,873<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAmortization of intangible assets<\/p>\n<\/td>\n | | \n\n \n807<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n665<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n98<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nImpairment of goodwill<\/p>\n<\/td>\n | | \n\n \n\u2013<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n4,458<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n657<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal costs and expenses<\/p>\n<\/td>\n | | \n\n \n212,813<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n254,081<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n37,447<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Share-based compensation expense:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of revenue<\/p>\n<\/td>\n | | \n\n \n463<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n424<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n62<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n0.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nProduct development expenses<\/p>\n<\/td>\n | | \n\n \n1,466<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1,477<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n218<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales and marketing expenses<\/p>\n<\/td>\n | | \n\n \n458<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n337<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n50<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.1<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGeneral and administrative expenses<\/p>\n<\/td>\n | | \n\n \n1,158<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1,066<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n157<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.4<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal share-based compensation expense(1)<\/sup><\/p>\n<\/td>\n | \n\n \n3,545<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,304<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n487<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Costs and expenses excluding share-based compensation expense:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of revenue<\/p>\n<\/td>\n | | \n\n \n135,966<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n54.9<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n165,672<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n24,418<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n61.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n6.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nProduct development expenses<\/p>\n<\/td>\n | | \n\n \n13,535<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n5.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n21,052<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,102<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n7.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n2.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSales and marketing expenses<\/p>\n<\/td>\n | | \n\n \n52,720<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n21.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n47,288<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6,969<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n17.6<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(3.7<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGeneral and administrative expenses<\/p>\n<\/td>\n | | \n\n \n6,240<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n2.5<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n11,642<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1,716<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n4.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1.8<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAmortization of intangible assets<\/p>\n<\/td>\n | | \n\n \n807<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.3<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n665<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n98<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.2<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n(0.1<\/p>\n<\/td>\n | \n \n)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nImpairment of goodwill<\/p>\n<\/td>\n | | \n\n \n\u2013<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n0.0<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n4,458<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n657<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n1.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n | | \n\n \n1.7<\/p>\n<\/td>\n | \n \n%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal costs and expenses excluding share-based compensation expense<\/p>\n<\/td>\n | | \n\n \n209,268<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n250,777<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n36,960<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nThis includes both cash and non-cash share-based compensation expenses.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Cost of revenue<\/b> \u2013 Cost of revenue in the quarter ended June 30, 2026 was RMB166,096 million (US$24,480 million), or 61.8% of revenue, compared to RMB136,429 million, or 55.1% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 54.9% in the quarter ended June 30, 2025 to 61.6% in the quarter ended June 30, 2026, primarily driven by the increase in proportion of cloud and technology businesses in our revenue mix, as well as the contra revenue impact from the new business development program.<\/p>\n Product development expenses<\/b> \u2013 Product development expenses in the quarter ended June 30, 2026 were RMB22,529 million (US$3,320 million), or 8.4% of revenue, compared to RMB15,001 million, or 6.1% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.5% in the quarter ended June 30, 2025 to 7.8% in the quarter ended June 30, 2026, primarily due to investments in our technology infrastructure costs, as well as research and development personnel.<\/p>\n Sales and marketing expenses<\/b> \u2013 Sales and marketing expenses in the quarter ended June 30, 2026 were RMB47,625 million (US$7,019 million), or 17.7% of revenue, compared to RMB53,178 million, or 21.5% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have decreased from 21.3% in the quarter ended June 30, 2025 to 17.6% in the quarter ended June 30, 2026, primarily due to the impact of our new business development program, where relevant subsidies previously recorded as sales and marketing expenses are now recorded as contra revenue item, as well as more efficient investment in Taobao Instant Commerce.<\/p>\n General and administrative expenses<\/b> \u2013 General and administrative expenses in the quarter ended June 30, 2026 were RMB12,708 million (US$1,873 million), or 4.7% of revenue, compared to RMB7,398 million, or 3.0% of revenue, in the same quarter of 2025. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have increased from 2.5% in the quarter ended June 30, 2025 to 4.3% in the quarter ended June 30, 2026, primarily due to a provision in relation to the fine imposed by the European Commission under the Digital Services Act of EUR550 million recorded this year.<\/p>\n Share-based compensation expense<\/b> \u2013 Total share-based compensation expense included in the cost and expense items above in the quarter ended June 30, 2026 was RMB3,304 million (US$487 million), compared to RMB3,545 million in the same quarter of 2025.<\/p>\n \nThe following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:<\/p>\n \n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three months ended June 30,<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2026<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n RMB<\/b><\/p>\n<\/td>\n | | \n\n US$<\/b><\/p>\n<\/td>\n | | \n\n YoY %
\n
Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n (in millions, except percentages)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n By type of awards:<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAlibaba Group share-based awards(1)<\/sup><\/p>\n<\/td>\n | \n\n \n2,321<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n2,461<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n363<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n6%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOthers(2)<\/sup><\/p>\n<\/td>\n | \n\n \n1,224<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n843<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n124<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(31)%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal share-based compensation expense(3)<\/sup><\/p>\n<\/td>\n | \n\n \n3,545<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n3,304<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n487<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n(7)%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| ____________________<\/td>\n<\/tr>\n | \n| \n \n(1)<\/p>\n<\/td>\n | | \n\n \nThis represents Alibaba Group share-based awards granted to our employees.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(2)<\/p>\n<\/td>\n | | \n\n \nThis represents share-based awards of our subsidiaries and Ant Group granted to our employees.<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(3)<\/p>\n<\/td>\n | | \n\n \nThis includes both cash and non-cash share-based compensation expenses.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nShare-based compensation expense decreased in the quarter ended June 30, 2026 compared to the same quarter of 2025.<\/p>\n \nWe expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.<\/p>\n Amortization of intangible assets<\/b> \u2013 Amortization of intangible assets in the quarter ended June 30, 2026 was RMB665 million (US$98 million), a decrease of 18% from RMB807 million in the same quarter of 2025.<\/p>\n Impairment of goodwill<\/b> \u2013 Impairment of goodwill of RMB4,458 million (US$657 million) was recorded in the quarter ended June 30, 2026. Impairment recorded represents the impairment of goodwill in relation to businesses in All others.<\/p>\n Income from operations and operating margin<\/span><\/b><\/p>\n\nIncome from operations in the quarter ended June 30, 2026 was RMB15,161 million (US$2,234 million), or 6% of revenue, a decrease of 57% compared to RMB34,988 million, or 14% of revenue, in the same quarter of 2025, primarily due to the decrease in adjusted EBITA, impairment of goodwill and a provision in relation to the fine imposed by the European Commission under the Digital Services Act of EUR550 million recorded this year.<\/p>\n Adjusted EBITDA and Adjusted EBITA<\/span><\/b><\/p>\n\nAdjusted EBITDA decreased 14% year-over-year to RMB39,143 million (US$5,769 million) in the quarter ended June 30, 2026, compared to RMB45,735 million in the same quarter of 2025. Adjusted EBITA decreased 30% year-over-year to RMB27,329 million (US$4,028 million) in the quarter ended June 30, 2026, compared to RMB38,844 million in the same quarter of 2025, primarily attributable to the investment in technology, partly offset by the improved operating results in our Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.<\/p>\n Adjusted EBITA by segment<\/span><\/b><\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |