"Alibaba reported fiscal Q4 2026 on May 13, 2026. Revenue came in at $35.28 billion, up 3% year over year, with EPS of $0.09. Adjusted EBITA fell 84% to $740 million and free cash flow swung to negative $2.51 billion. The market's reaction was muted: shares closed at $141.12, down 3.22% on the session."
"Alibaba Cloud grew 38% to $6.04 billion, with external revenue accelerating to 40% growth. AI-related products now represent 30% of external cloud revenue, marking the eleventh consecutive quarter of triple-digit AI growth. Quick commerce (Taobao Instant Commerce and Ele.me) surged 57%. Shares are up 7.44% over the past month and 7.08% over the past year, though still 3.72% lower year to date."
"Bulls have a credible roadmap. The Street's average target sits at $188.98, with 31 Buy and 8 Strong Buy ratings. Our bull-case scenario points to $208.07 within 12 months. The drivers: Qwen LLM with 300 million monthly active users, over 100,000 Zhenwu PPU AI chips deployed, and Alibaba Cloud holding 35.8% of China's AI cloud market."
"CEO Eddie Wu summed up the posture: "Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale." A $19.1 billion remaining buyback authorization through March 2027 adds a floor."
Alibaba reported fiscal Q4 2026 revenue of $35.28 billion, up 3% year over year, with EPS of $0.09. Adjusted EBITA fell 84% to $740 million and free cash flow turned negative at $2.51 billion. Alibaba Cloud revenue grew 38% to $6.04 billion, with external revenue accelerating to 40% growth. AI-related products represented 30% of external cloud revenue, with eleven consecutive quarters of triple-digit AI growth. Quick commerce surged 57%. The stock closed at $141.12, down 3.22% on the day. A 12-month price target of $157.86 implies 11.86% upside, supported by Qwen LLM usage, deployed AI chips, and a remaining $19.1 billion buyback authorization through March 2027.
Read at 24/7 Wall St.
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