Alibaba Group reported sustained revenue acceleration across its core businesses for the quarter ended March 31. Group quarterly revenue rose 7% year over year, driven by strong AI demand and robust monetization in China e-commerce, while adjusted EBITA increased 36%.
Cloud Intelligence Group’s revenue grew 18% year-over-year, led by strong demand of AI-related products, which have now posted seven consecutive quarters of triple-digit revenue growth. Taobao and Tmall Group (TTG) reported a 12% increase in customer management revenue, while the international commerce business segment achieved a 22% revenue growth.
“Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our ‘user first, AI-driven’ strategy, with core business growth continuing to accelerate,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
The company also reinforced its commitment to shareholder returns in fiscal year 2025, returning US$16.5 billion to shareholders. This included a 5.1% net reduction in outstanding shares via US$11.9 billion in share repurchases, and a significantly increased dividend payout totaling US$4.6 billion.
Strong AI Demand Drives Cloud Momentum
Cloud Intelligence Group posted 18% in revenue growth in the quarter, reaching RMB30,127 million (US$4,152 million), propelled by accelerating public cloud revenue and increasing adoption of AI-related products.
AI-related product revenue rose by triple digits for the seventh consecutive quarter. A wide range of industry verticals, including internet, retail, manufacturing, and media increasingly adopted Alibaba’s value-added offerings. Lingma, Alibaba’s AI coding assistant launched last year, saw strong traction among enterprise customers, delivering robust revenue growth.
“Looking ahead, we will remain focused on our core businesses and continue to drive AI + Cloud as a new engine for our long-term growth,” said Wu.
In April, the company launched the Qwen3 series, its latest generation of open-source hybrid reasoning models that combines fast, direct responses with advanced chain-of-thought reasoning. The Qwen model family has now surpassed 300 million downloads globally, with over 100,000 derivative models developed by the global open source community to support AI innovations at startups and enterprises.
Robust E-Commerce Growth Driven by Merchant and User Experience Investments
Taobao and Tmall Group delivered another quarter of strong growth, with customer management revenue rising 12% year-over-year to RMB71,077 million (US$9,794 million). The growth was supported by improved take rate, resulting from the impact of software service fee and broader penetration of AI-powered marketing tool Quanzhantui.
TTG’s investments in user growth and experience drove growth in new consumers and order volume. The number of 88VIP members, Alibaba’s high-value consumer cohort, exceeded 50 million, with double-digit growth year-over-year, signaling strong engagement from premium consumers.
TTG also deepened partnership with Xiaohongshu , allowing direct links from Xiaohongshu content to Taobao and Tmall storefronts, creating a seamless shopping experience and unlocking new traffic opportunities for merchants.
Diversified International Commerce Businesses
Alibaba International Digital Commerce Group (AIDC) delivered 22% year-over-year revenue growth in the quarter, reaching RMB33,579 million (US$4,627 million), driven primarily by strong performance in cross-border commerce. AIDC continued to improve operational and investment efficiency, narrowing losses while diversifying business and product offerings to maintain its competitive advantage.
Both AliExpress and Trendyol actively diversified their product offerings by working closely with local merchants and partners and tailoring business models to local market needs.
This year marks the 15th anniversary of AliExpress, which launched in 2010. The platform now serves over 150 million consumers across more than 200 countries and regions.
