Understanding the Market | Alibaba-W opened nearly 15% higher, with the growth rate of cloud business and capital expenditure in the first fiscal quarter exceeding expectations
Alibaba-W opened nearly 15% higher, rising 14.95% to HKD 133 as of the time of writing, with a transaction volume of HKD 2.518 billion. The company released its Q1 fiscal year 2026 financial report, with revenue of 247.652 billion yuan, a year-on-year increase of 10%; net profit of 42.382 billion yuan, a year-on-year increase of 76%. Capital expenditure for AI + Cloud reached 38.6 billion yuan, a year-on-year increase of 220%. Alibaba Cloud's revenue grew by 26% year-on-year, the highest growth rate in three years. Instant retail business revenue was 14.784 billion yuan, a year-on-year increase of 12%
According to Zhitong Finance APP, Alibaba-W (09988) opened nearly 15% higher, and as of the time of writing, it has risen by 14.95%, trading at HKD 133, with a transaction volume of HKD 2.518 billion.
In terms of news, on August 29, Alibaba released its financial report for the first quarter of the fiscal year 2026, achieving revenue of RMB 247.652 billion for the quarter. Excluding the impact of divested businesses, overall revenue grew by 10% year-on-year; net profit was RMB 42.382 billion, a year-on-year increase of 76%. Notably, in this quarter, Alibaba's capital expenditure on AI + Cloud reached RMB 38.6 billion, a year-on-year increase of 220% and a quarter-on-quarter increase of 57.1%, setting a record high for a single quarter. Alibaba Cloud's revenue grew by 26% year-on-year, the highest growth rate in three years, and revenue from AI-related products has achieved triple-digit year-on-year growth for eight consecutive quarters. The company stated that although there are occasional changes in chip supply policies, it will always be prepared with response plans. The company is confident in continuing to implement its plan to invest RMB 380 billion in AI and Cloud over three years.
Additionally, the financial report mentioned that instant retail has quickly achieved stage results, winning consumer mindshare, with the first three weeks of August driving a 25% year-on-year increase in monthly active consumers on the Taobao app. For this quarter, the group's instant retail business revenue was RMB 14.784 billion (USD 2.064 billion), an increase of 12% compared to RMB 13.196 billion in the same period of 2024, mainly due to the increase in order volume brought by Taobao Flash Purchase launched at the end of April 2025. Alibaba Group CEO Eddie Wu said, "Looking to the future, we will continue to firmly invest around the two strategic focuses of large consumption and AI + Cloud, seizing historical opportunities to achieve long-term growth."
