Shares of Alibaba Group Holding Restricted (NYSE: BABA) rose 6% on Thursday after the corporate delivered sturdy outcomes for the third quarter of 2025. Income and earnings grew on a year-over-year foundation and surpassed expectations. The corporate noticed progress within the ecommerce and cloud companies and expects additional momentum in cloud, pushed by synthetic intelligence (AI).
Q3 numbers
Within the third quarter of 2025, Alibaba’s income elevated 8% to $38.38 billion in comparison with the year-ago interval. Adjusted earnings per ADS grew 13% YoY to $2.93. Each the highest and backside line numbers got here forward of projections.
Cloud and AI momentum
Alibaba’s Q3 outcomes considerably benefited from progress in its cloud division. Income from Cloud Intelligence Group elevated 13% YoY to $4.35 billion. Income excluding Alibaba-consolidated subsidiaries grew 11%, pushed primarily by double-digit progress in income from public cloud merchandise, together with AI-related merchandise. In the meantime, AI-related product income grew triple-digits YoY for the sixth consecutive quarter.
Alibaba expects income progress at its cloud division to proceed to achieve tempo pushed by AI. The corporate plans to proceed investing in AI infrastructure to extend cloud adoption for AI and preserve its main place available in the market.
Ecommerce progress
In Q3, income from the China commerce retail enterprise elevated 5% YoY to $17.7 billion. Buyer administration income grew 9%, pushed by progress in on-line gross merchandise quantity and an enchancment in take price. Direct gross sales and others income fell 9% as a result of a deliberate discount in sure direct gross sales companies.
Income from the China commerce wholesale enterprise rose 24% YoY to $901 million, pushed by a rise in income from value-added companies offered to paying members.
In the course of the quarter, income from the worldwide commerce retail enterprise elevated 36% YoY to $4.3 billion, helped by an increase in income from AliExpress and Trendyol. Income from the worldwide commerce wholesale enterprise grew 18% to $850 million, pushed by a rise in income generated by cross-border associated value-added companies.
