Alibaba-W Shares Drop Over 6% Following Earnings Release as Q3 Revenue and Profit Miss Estimates

Stock News
Mar 20

Alibaba-W (09988) opened more than 6% lower after reporting its financial results. As of writing, the stock was down 6.44% at HK$123.5, with a turnover of HK$1.397 billion. On March 19, Alibaba announced its third-quarter results for fiscal year 2026. Revenue reached RMB 284.84 billion, up 2% year-on-year, while adjusted net profit fell 67% to RMB 16.71 billion. Adjusted EBITA dropped 57% to RMB 23.397 billion. The company attributed the decline primarily to investments in instant retail, user experience, and technology, partly offset by improved operational performance from continued growth in its cloud business and enhanced efficiency across multiple segments. During the period, Alibaba Cloud revenue grew 36%, with AI-related product revenue posting triple-digit growth for the tenth consecutive quarter. E-commerce revenue reached RMB 131.583 billion, up 1% year-on-year, while customer management revenue also increased 1%. Net cash flow from operating activities was RMB 36.032 billion, down 49% from RMB 70.915 billion in the same period of 2024. Free cash flow stood at RMB 11.346 billion, a 71% decrease from RMB 39.020 billion a year earlier.

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