Research memoAlibaba Group Holding Limited (9988.HK) · HKSEMemo of October 12, 2026

Alibaba earnings date and guidance

Alibaba’s next results are expected on December 1, 2026. The key thing to watch is whether external demand fills capacity and turns cloud investment into cash.

December 1, 2026
Next results
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Every number traced to Alibaba's filings8 chapters · 16,537 words214 sources cited

What has Alibaba guided for AI products and cloud?

Management has guided to a US$10 billion annualized AI-product revenue run rate in the quarter ending September 2026. Annualized means multiplying the latest quarter’s pace by four; it is not money already collected. If Taobao, which Alibaba owns, uses Alibaba Cloud, that may prove the technology’s value, but money moving between Alibaba divisions is not new revenue for the consolidated group.

The larger promise is to exceed US$100 billion in annual combined external cloud and AI revenue within five years. It includes ordinary computing, storage and databases, not only model services. Management also maintains a calendar-year-end target of RMB30 billion in annual recurring revenue from model and application services, including model as a service, through which customers use hosted models instead of running their own systems.

Guidance in forceUS$ billions
PeriodLowHighGiven on
Annualized revenue run rate of our AI productsQuarter to Sep 2026 (FY2027)1010Aug 20, 2026

What are Alibaba’s recent revenue and profit trends?

June 2026 brought higher sales but much weaker profitability. Revenue rose, while gross margin, operating income, net income and diluted EPS all fell sharply.

The last eight reported periodsRMB millions; per share in RMB
Jun 2026Mar 2026Dec 2025Sep 2025Jun 2025Mar 2025Dec 2024Sep 2024
Revenue268,953243,380284,843247,795247,652
Gross margin38.2%34.5%40.5%39.2%44.9%
Operating income15,161-84810,6455,36534,988
Net income10,61425,54116,38321,01940,649
EPS, diluted0.461.300.741.092.25
= Free cash flow-44,733-18,3517,033-21,402-18,004

What should investors watch in Alibaba’s next results?

The decisive evidence will be paying customers, repeatable merchant returns and regulatory execution. September-quarter results should test the annualized AI-product milestone, while December-quarter disclosures should test the model-and-application-services target.

Investors should track external cloud sales, margins, capital spending and free cash flow together. Alibaba separates AI Cloud and Compute Services from AI Labs and Applications, allowing a basic question: are infrastructure sales becoming profitable enough to support the continuing cost of developing and distributing models?

From the full memo · 1. The business

Alibaba is chiefly a digital marketplace operator: it connects shoppers and businesses, then sells the computing, logistics and retail services that help those transactions happen. Its money comes from fees, service charges and some direct sales, while its costs come from technology, people, inventory, infrastructure and delivery.

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Where these numbers come from

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