Alibaba Group said on Friday that its revenue for Alibaba Q2 2025 results (the quarter ending June 30, 2025), was RMB 247.65 billion (US$34.57 billion), which is 2% more than the same quarter last year. According to a press release , revenue grew by 10% on a like-for-like basis, not excluding the sold Sun Art and Intime businesses.
Profitability was mixed as the company leaned into instant commerce and AI. Income from operations declined 3% to RMB 34.99 billion. Adjusted EBITA fell 14% to RMB 38.84 billion, reflecting higher spending on Taobao Instant Commerce, user experience, customer acquisition, and technology. Net income increased 76% to RMB 42.38 billion, driven mainly by mark-to-market gains on equity investments and a disposal at Trendyol’s local consumer service business. Non-GAAP net income fell 18% to RMB 33.51 billion.
Chief Executive Eddie Wu said the quarter underscored two strategic pillars—consumption and “AI + Cloud”—noting record consumer engagement and accelerating demand for cloud services, as quoted by Alibaba’s press release. Chief Financial Officer Toby Xu said customer-management revenue grew 10% and Cloud Intelligence Group revenue rose 26%, while the company continued to fund quick commerce and AI initiatives; he added that AIDC’s loss narrowed toward breakeven, as quoted by the company.
China e-commerce showed steady gains. Customer-management revenue increased 10% to RMB 89.25 billion, helped by a higher take rate. Alibaba launched Taobao Instant Commerce at the end of April to meet on-demand delivery needs across categories from groceries to electronics. The company said monthly active consumers on the Taobao app were up 25% year over year in the first three weeks of August, and 88VIP members surpassed 53 million. The 6.18 Shopping Festival delivered year-over-year growth in consumer activity on Taobao.
International operations accelerated. Revenue at Alibaba International Digital Commerce Group (AIDC) rose 19% to RMB 34.74 billion, led by cross-border businesses. Management said AliExpress (Choice) improved logistics efficiency and unit economics, Trendyol’s international unit strengthened sequentially, and broader merchant adoption of AI tools on its wholesale platform supported monetization. AIDC focused on operating discipline while expanding in priority regions.
Cloud momentum continued. Cloud Intelligence Group revenue climbed 26% to RMB 33.40 billion, propelled by public-cloud growth and rising adoption of AI-related products. Alibaba said AI-related product revenue posted triple-digit growth for the eighth straight quarter. As AI workloads scale, the company expects higher demand for compute, storage, and related services and plans further investment to maintain market leadership. The press release also cited an Omdia assessment highlighting Alibaba Cloud’s full-stack GenAI capabilities.
Cash generation reflected heavier reinvestment. Net cash provided by operating activities was RMB 20.67 billion, down 39% year over year. Free cash flow swung to an outflow of RMB 18.82 billion, mainly due to increased cloud-infrastructure spending and investment in instant commerce. Cash and other liquid investments totaled RMB 585.66 billion (US$81.76 billion) at quarter-end.
Alibaba simplified its reporting structure to align with a “user first” strategy. Taobao and Tmall Group, Ele.me, and Fliggy were combined into the Alibaba China E-commerce Group. Cainiao, Amap, and the rebranded Hujing Digital Media & Entertainment moved to “All others.” Segment reporting now comprises: (1) Alibaba China E-commerce Group, (2) Alibaba International Digital Commerce Group, (3) Cloud Intelligence Group, and (4) All others.
Capital returns continued. The company repurchased 56 million ordinary shares (equivalent to 7 million ADSs) for US$815 million during the quarter. As of June 30, 2025, the remaining authorization under its buyback program—effective through March 2027—was US$19.3 billion.
Management said it will keep investing behind consumption and AI + Cloud while pushing for operating efficiencies across businesses, according to the press release.
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