In a significant demonstration of its continued market strength, Alibaba Group has released its financial results for the third quarter of fiscal year 2025, showcasing robust growth across multiple business segments and a remarkable increase in profitability.
Financial Performance Highlights
Alibaba posted quarterly revenue of CNY 280.15 billion (USD 38.38 billion), representing an 8% year-over-year increase. More impressively, the company's net profit soared to CNY 46.43 billion (USD 6.36 billion), marking a substantial 333% increase from the same period last year. The adjusted non-GAAP net profit reached CNY 51.07 billion (USD 7 billion), showing a 6% year-over-year growth.
Key Financial Metrics (Q3 FY2025):
- Revenue: CNY 280.15 billion (+8% YoY)
- Net Profit: CNY 46.43 billion (+333% YoY)
- Cloud Revenue: CNY 31.74 billion (+13% YoY)
- International Commerce Revenue: CNY 37.76 billion (+32% YoY)
- Cash and Investments: CNY 610.04 billion
Cloud Intelligence Group Performance
The Cloud Intelligence Group (CIG) demonstrated strong momentum with revenue reaching CNY 31.74 billion (USD 4.35 billion), up 13% year-over-year. This growth was particularly notable in AI-related products, which maintained triple-digit growth for consecutive quarters. The company significantly increased its capital expenditure, with an 80% quarter-over-quarter rise primarily directed toward AI infrastructure development.
Core Commerce Segments
The Taobao and Tmall Group, representing Alibaba's core commerce business, generated revenue of CNY 136.09 billion (USD 18.64 billion), growing 5% year-over-year. The International Digital Commerce Group showed exceptional performance with a 32% year-over-year increase, reaching CNY 37.76 billion (USD 5.17 billion) in revenue.
Segment Revenue Breakdown:
- Taobao and Tmall Group: CNY 136.09 billion
- Cloud Intelligence Group: CNY 31.74 billion
- International Digital Commerce: CNY 37.76 billion
- Cainiao Logistics: CNY 28.24 billion
- Local Services: CNY 16.99 billion
- Digital Media and Entertainment: CNY 5.44 billion
Strategic Initiatives and Capital Management
Alibaba continues to optimize its portfolio through strategic divestments, including the disposal of its interests in Sun Art Retail and Intime for HKD 12.3 billion and CNY 7.4 billion respectively. The company maintains a strong financial position with cash and investments totaling CNY 610.04 billion (USD 83.58 billion). Additionally, Alibaba has demonstrated its commitment to shareholder returns through an active share repurchase program, buying back 119 million ordinary shares worth USD 1.3 billion during the quarter.
Workforce and Operational Efficiency
As of December 31, 2024, Alibaba's workforce stood at 194,320 employees, reflecting the company's ongoing optimization of its organizational structure while maintaining operational efficiency across its diverse business segments.