According to a report from UOB Kay Hian analysts, Alibaba's performance for the third quarter of fiscal year 2026 may be unremarkable. However, profit margins are anticipated to gradually recover as investments in the fiercely competitive on-demand delivery sector slow down. These analysts maintain a cautiously optimistic stance on the core e-commerce business, which faces challenges from high base effects and intense competition, but they hold a favorable view of the cloud computing segment. UOB Kay Hian forecasts that quarterly customer management revenue will increase by 3.5% year-over-year, while non-GAAP net profit is projected to decline by 45%. The brokerage predicts a significant 36% surge in revenue for Alibaba's cloud business. It has reaffirmed its Buy rating on Alibaba's H-shares with a target price of HK$206, noting that Alibaba remains the only listed company in China with comprehensive, full-stack AI capabilities.