Alibaba-W focuses on consumption and AI+Cloud strategy in the first quarter, with net profit attributable to shareholders increasing by 78% year-on-year to 43.116 billion yuan
Alibaba-W announced its first-quarter results for the period ending June 30, 2025, with revenue of 247.652 billion yuan, a year-on-year increase of 2%; operating profit of 34.988 billion yuan, a year-on-year decrease of 3%. The net profit attributable to ordinary shareholders was 43.116 billion yuan, a year-on-year increase of 78%. The growth in net profit was mainly due to changes in the market value of equity investments and gains from the disposal of the Trendyol business. AIDC revenue increased by 19% year-on-year, and Cloud Intelligence Group revenue increased by 26% year-on-year
According to the Zhitong Finance APP, Alibaba-W (09988) announced its performance for the three months ending June 30, 2025, with revenue of RMB 247.652 billion (USD 34.571 billion), a year-on-year increase of 2%. Operating profit was RMB 34.988 billion (USD 4.884 billion), a year-on-year decrease of 3%. The net profit attributable to ordinary shareholders was RMB 43.116 billion (USD 6.019 billion), a year-on-year increase of 78%; diluted earnings per American Depositary Share were RMB 17.98 (USD 2.51).
The announcement stated that the decrease in operating profit was mainly due to the reduction in adjusted EBITA, partially offset by the amortization of intangible assets, a decrease in non-cash equity incentive expenses, and a one-time provision made in the same period last year. The growth in net profit was mainly due to changes in the fair value of equity investments held by the group and gains from the disposal of Trendyol's local life services business, partially offset by the decrease in operating profit.
For the quarter ending June 30, 2025, AIDC's revenue grew by 19% year-on-year to RMB 34.741 billion (USD 4.850 billion), mainly driven by strong performance in cross-border business. AIDC has strategically focused on key regions and continued to emphasize operational efficiency, significantly narrowing its losses both year-on-year and quarter-on-quarter. The unit economics of the AliExpress Choice business have continued to improve significantly, mainly due to logistics optimization and increased input efficiency. The unit economics of Trendyol's international business have also improved quarter-on-quarter.
For the quarter ending June 30, 2025, the Cloud Intelligence Group's revenue was RMB 33.398 billion (USD 4.662 billion), a year-on-year increase of 26%. In this quarter, overall revenue (excluding revenue from Alibaba's consolidated businesses) also accelerated to a year-on-year growth of 26%. This growth momentum was mainly driven by the increase in public cloud business revenue, including the adoption of AI-related products.
Revenue from AI-related products has achieved triple-digit year-on-year growth for eight consecutive quarters. While demand for AI is growing rapidly, we are also seeing sustained growth in demand for computing, storage, and other public cloud services to support AI applications. We will continue to invest in customer growth and technological innovation, including AI products and services, to enhance cloud adoption in the AI field and maintain our market leadership.
Alibaba Group CEO Eddie Wu stated: "In this quarter, we focused on the strategy of consumption and AI + cloud, achieving strong growth. We have heavily invested in instant retail business, quickly achieving phased results and winning consumer minds. By integrating consumption platforms, we generated significant synergies, driving monthly active consumers and daily order volumes to new highs. Driven by sustained strong demand for AI, the Cloud Intelligence Group's revenue accelerated growth, with AI revenue significantly contributing to external commercialization revenue. Looking ahead, we will continue to invest firmly around the two strategic focuses of large consumption and AI + cloud, seizing historical opportunities for long-term growth." Alibaba Group Chief Financial Officer Xu Hong stated: "Our core business has achieved strong revenue growth. Customer management revenue increased by 10% year-on-year, and the Cloud Intelligence Group's revenue grew by 26% year-on-year, with AI-related product revenue achieving triple-digit growth for the eighth consecutive quarter. The advantages of our core business further strengthen the group's confidence and provide resources to support our significant investments in instant retail and AI. We have excelled in fulfilling our commitment to improving operational efficiency, with AIDC significantly reducing losses year-on-year this quarter, approaching breakeven."
