Shares of Alibaba Group (BABA-WR) surged 13.47% in Hong Kong's pre-market trading on Monday, following the release of its impressive first-quarter fiscal year 2026 financial results. The e-commerce and technology giant's stock opened nearly 15% higher, reaching HK$133 with a trading volume of HK$2.518 billion, as investors responded positively to the company's strong performance and strategic direction.
Alibaba reported a 10% year-over-year revenue growth to RMB 247.652 billion for the quarter, excluding the impact of divested businesses. Net profit surged 76% to RMB 42.382 billion. The company's AI+Cloud segment showed particularly strong results, with capital expenditure reaching a record high of RMB 38.6 billion, a 220% increase year-over-year. Alibaba Cloud revenue grew by 26%, its highest growth rate in three years, while AI-related product revenue achieved triple-digit year-over-year growth for the eighth consecutive quarter.
During the earnings call, CEO Wu Yongming emphasized Alibaba's strategic focus on two major opportunities: the technology platform centered on "AI+Cloud" and the large consumer platform integrating shopping and lifestyle services. The company's instant retail business also showed promising results, with revenue increasing 12% to RMB 14.784 billion. Alibaba remains committed to its three-year RMB 380 billion investment plan in AI and cloud, despite potential changes in chip supply policies. As CEO Eddie Wu stated, "We will continue to make determined investments around our two strategic focuses of mass consumption and AI+Cloud, seize historical opportunities, and achieve long-term growth."
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