Alibaba stock falls 4.72 percent as profit drops 75 percent

Published on 09/24/2026 at 14:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Alibaba stock posted CNY 268.953 billion in Q1 FY2027 revenue, up 9 percent year over year. AI Cloud revenue reached CNY 48.4 billion after 45 percent growth.

BABA, US01609W1027, Illustration mit AI erstellt.

Alibaba Group (ISIN US01609W1027) stock stood at USD 110.78 on the NYSE on September 23, 2026, down 4.72 percent from the prior session. The move comes against a sharply divided quarterly picture, with group revenue rising while profit contracted.

Revenue grows by 9 percent

Alibaba reported CNY 268.953 billion in revenue for the quarter ended June 30, 2026, up 9 percent year over year, according to FXStreet. The comparison is important because the growth was accompanied by a 75 percent decline in GAAP net income to CNY 10.444 billion.

Cash generation also weakened in the same quarter. Quarterly free cash flow was negative CNY 44.7 billion, while the company expanded investment in artificial intelligence infrastructure, according to TS2.

AI cloud reaches CNY 48.4 billion

The growth engine is increasingly visible in cloud services. AI Cloud and Compute Services revenue rose 45 percent year over year to CNY 48.4 billion in the June 2026 quarter, while adjusted EBITA more than doubled to CNY 5.6 billion, FXStreet reported on September 24, 2026.

That contrast defines the current investment debate: cloud expansion is producing faster top-line growth, but the 75 percent profit decline and negative CNY 44.7 billion free cash flow show the cost of scaling. Alibaba also completed an HKD 80 billion Hong Kong share placement on August 26, 2026, according to the company investor relations page.

AI announcements set the next test

A Citi research report cited by Moomoo on September 21, 2026, pointed to Alibaba's Apsara Conference from September 22 to September 24. The report highlighted possible updates to Qwen models, AI infrastructure, chips and enterprise applications.

Stock remains below yearly high

Alibaba stock was USD 110.78 on the NYSE on September 23, 2026. The price was below the 52-week high of USD 192.67 and above the 52-week low of USD 91.99, leaving the earnings and capital-spending tradeoff central to the stock's valuation.