Alibaba’s quarterly revenue grows 7% as ‘all-in on AI’ strategy pays off

The Hangzhou-based company’s adjusted earnings rose 36 per cent year on year to 32.6 billion yuan in the March quarter

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Ann Caoin ShanghaiandWency Chenin Shanghai

Published: 6:06pm, 15 May 2025Updated: 9:16pm, 15 May 2025

Alibaba Group Holding’s “all-in on AI” strategy to remake its business appears to be paying off, based on the tech giant’s latest quarterly results.

The Hangzhou-based company, which shocked investors earlier this year by pledging US$52 billion in capital spending on computing resources and artificial intelligence (AI) infrastructure over the next three years, posted 18 per cent growth in cloud unit revenue for its fourth quarter ended March 31, while AI-related products saw triple-digit revenue growth for the seventh consecutive quarter.

“We continue to see growing demand for cloud and AI, an opportunity that will define the next 10 to 20 years and will not be derailed by short term supply chain fluctuations,” Alibaba CEO Eddie Wu Yongming said during the post-earnings call with analysts on Thursday.

Alibaba’s total revenue rose 7 per cent to reach 236.5 billion yuan (US$32.6 billion) in the last quarter of its financial year to March, slightly missing the Bloomberg consensus estimate of 237.9 billion yuan. That marked the 11th consecutive quarter of revenue growth for the company.

Net income attributable to ordinary shareholders surged 279 per cent to 12.4 billion yuan, lower than the 22.6 billion yuan expected by analysts surveyed by Bloomberg. The company said gains from investments and operations were partly offset by “losses from disposal of subsidiaries”.

Alibaba’s adjusted earnings before interest, taxes and amortisation rose 36 per cent year on year to 32.6 billion yuan in the quarter, which was in line with the consensus estimate of 32.6 billion yuan.