Alibaba Group Holding Ltd, the prominent Chinese e-commerce company, disclosed its quarterly revenue results on Thursday, which fell slightly short of Wall Street predictions. As the company reshapes its strategies to sustain consumer expenditure amid economic challenges and global trade uncertainties, U.S.-listed shares of Alibaba saw a decline of over 4% in premarket trading, despite having increased by nearly 60% earlier this year.
Confronted with a high unemployment rate and ongoing economic sluggishness, Chinese consumers are displaying heightened price sensitivity, prompting the need for deeper discounts and lower prices to encourage purchasing.
For the fiscal fourth quarter, ending March 31, Alibaba reported revenues of 236.45 billion yuan, compared to analysts’ forecasts of 237.24 billion yuan, as collected by LSEG data.
Alibaba Q4 FY2025 Earnings Overview
- Revenue: 236.45 billion yuan (Forecast: 237.91 billion yuan); a 7% increase year-on-year.
- Adjusted EPS: 12.52 yuan (Forecast: 12.81 yuan); marking a 23% annual growth.
CEO Eddie Wu noted the company’s core business is experiencing accelerated growth, propelled by increased adoption of AI and robust progress in the cloud sector, indicating that AI-related product revenues have maintained triple-digit growth for the seventh consecutive quarter.
CFO Toby Xu highlighted that the company achieved a 7% rise in revenue and a 36% increase in EBITA. He emphasized that their actions such as share repurchases and special dividends underscore a commitment to enhancing shareholder value.
Additionally, the executives added that revenue from AI products continues to experience significant triple-digit annual growth across various sectors, including retail, manufacturing, and media.
