Alibaba’s Revenue Beats Expectations as Instant Retail and AI Drive Growth

By Zenia Pearl V. Nicolas

Alibaba’s headquarters in Hangzhou, China, photographed on a clear day with its signature geometric facade. Image Courtesy of Deposit photos / 236712734.

Alibaba’s Revenue Beats Expectations as Instant Retail and AI Drive Growth

Alibaba reported quarterly revenue of ¥247.8 billion (US $34.97 billion) on November 25, exceeding analyst expectations despite a significant decline in profitability. Reuters reports that revenue grew 5% year-on-year, while net profit fell about 53% to ¥20.61 billion, reflecting the cost of expanding its instant-retail network and ongoing investment in AI infrastructure (Reuters).

The instant-retail segment, which focuses on one-hour delivery for groceries, fast-moving goods and everyday essentials, continues to be a core strategic priority for the company. Analysts cited by BusinessDay note that this category could contribute substantially to Alibaba’s gross merchandise value (GMV) over the next several years, though it remains capital-intensive in the short term (BusinessDay).

Alibaba’s cloud division delivered one of the strongest performances of the quarter, posting approximately 34% revenue growth. Investor’s Business Daily attributes this surge to increased AI workloads and the adoption of Alibaba’s large-model services under its Qwen AI portfolio (Investor’s Business Daily). The company’s newly launched AI app also surpassed 10 million downloads in its first week, signaling rapid consumer adoption beyond enterprise clients.

MarketWatch notes that Alibaba’s stronger-than-expected top-line performance reflects how Chinese tech companies are leaning on cloud and AI to offset softer consumer sentiment in the broader retail environment (MarketWatch).

Even with compression in margins, the results highlight Alibaba’s pivot toward high-frequency retail, cloud computing, and AI productization — areas the company identifies as central to its long-term competitiveness across both retail and technology.

REFERENCES

Reuters. (2025, November 25). Alibaba revenue tops estimates with strong instant retail, AI push. https://www.reuters.com/world/asia-pacific/alibaba-beats-quarterly-revenue-estimates-2025-11-25/

Investor’s Business Daily. (2025, November 25). Alibaba stock jumps as AI powers 34% cloud growth for China tech giant. https://www.investors.com/news/technology/alibaba-stock-baba-news-earnings-2025-ai/

MarketWatch. (2025, November 25). Alibaba shows off its AI credentials as revenue tops expectations. https://www.marketwatch.com/story/alibaba-shows-off-its-ai-credentials-as-revenue-tops-expectations-4cb47301

BusinessDay. (2025, November 25). Alibaba tops revenue estimates on rapid delivery service, AI push. https://www.businessday.co.za/world/international-companies/2025-11-25-alibaba-tops-revenue-estimates-on-rapid-delivery-service-ai-push/

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