Alibaba’s AI Spending Push Leads to Operating Loss and Share Decline
Published: · Source: hankyung.com
Key points
- Alibaba reported fiscal 2026 revenue of 243.4 billion yuan, up 3%, but below market expectations, as AI spending and delivery competition led to an 848 million yuan operating loss.
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Alibaba of China reported results for fiscal 2026, covering April 2025 to March 2026, on May 14 local time. Revenue reached 243.4 billion yuan, up 3% from a year earlier, but missed the market forecast of 247.2 billion yuan. The company posted an operating loss of 848 million yuan, while net profit fell to 105.9 billion yuan, its first decline in four years. The weak performance was attributed to higher AI investment and costly coupon competition in China’s delivery market. Bloomberg Intelligence said Alibaba is using 90% of its e-commerce profit for its AI model Qwen. CEO Eddie Wu said AI investment is starting to support profitability and could show concrete results in three to five years. Alibaba shares closed down 3.22% at $141.12. Source: hankyung.com
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