Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. Excluding revenue from Sun Art and Intime, our total revenue on a like-for-like basis grew 10% year-over-year. Cloud Intelligence Group revenue growth accelerated to 26% year-over-year, with AI-related product revenue maintaining triple-digit growth for the eighth consecutive quarter. In AI + Cloud, the accelerated development of AI applications and increasing AI product adoption by customers drove a 26% year-over-year revenue increase from external customers.
During the quarter, AI-related revenue accounted for over 20% of revenue from external customers as AI demand continued to grow rapidly. We're also seeing AI applications driving great growth momentum of traditional products, including compute and storage. As SAP's global cloud computing partner, Alibaba Cloud will support SAP customers to run and manage their core software systems on Alibaba's platform. In August, monthly active consumers on our quick commerce business are approaching 300 million, contributing to a 25% increase in monthly active consumers on the Taobao app.
This is evidenced by Alibaba Cloud's return to rapid growth, driven by AI demand and our AI-enhanced experiences across consumer and enterprise-facing scenarios. We're seeing an increasingly clear path for AI to drive Alibaba Group's robust growth. China has a well-developed e-commerce infrastructure, high population density, and strong demand for service consumption, providing a solid foundation for the integration of our quick commerce business and the Taobao app. We're confident that these investments in the core business will sharpen our competitive edge and fuel long-term growth.
| Metric | Period | Current guidance |
|---|---|---|
| AI + cloud infrastructure investment | Three years (announced February) | CNY 380 billion (increase) |
| Consumption investment | Announced July | CNY 50 billion (incremental to existing user/supply-chain investment) (increase) |
| Quick commerce / platform GMV | Within three years | CNY 1 trillion GMV goal; long-term CNY 30 trillion addressable consumption market (increase) |
| Customer management revenue (CMR) growth | Coming couple of quarters | expected relatively rapid growth from Quanzhantui penetration and quick commerce, though software service fee base effect diminishes from September (increase) |
| Cloud revenue growth | Following few quarters | expected to continue increasing/accelerating (increase) |
| AIDC profitability | Looking ahead | profitability to continue improving with operating and investment efficiency (improve) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +10% on a like-for-like basis (RMB 247.7 billion) | Like-for-like excludes Sun Art and Intime; strong core cloud and e-commerce growth. |
| China E-commerce Group revenue | +10% (RMB 140.1 billion) | CMR up 10% on take-rate improvement; successful June 18 shopping festival; quick commerce revenue up 12%. |
| Cloud segment revenue | +26% (external customers +26%) | Public cloud growth and surging AI demand; AI-related revenue triple-digit for the 8th consecutive quarter. |
| AIDC revenue | +19% | Strong cross-border performance; adjusted EBITA loss narrowed, approaching break-even. |
| Quick commerce revenue | +12% | Order growth from the end-April rollout of Taobao Instant Commerce. |
| Total adjusted EBITA | -14% | Strategic focus on scaling quick commerce, partly offset by margin improvements at AIDC and other units. |
| GAAP net income | +76% | Mark-to-market gains on equity investments and gain on disposal of Trendyol local consumer service business. |
| Cloud adjusted EBITA margin | relatively stable at 8.8% | — |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Cloud / AI demand | 7th consecutive triple-digit AI quarter (prior) | 8th consecutive quarter; growth accelerated to 26%; AI over 20% of external revenue | Accelerating |
| Full-stack AI + Qwen open source | — | Qwen3 upgrades (Qwen3-Coder), WAN 2.2 and Qwen-Image open-sourced; SAP strategic partnership | Up |
| Quick commerce (Taobao Instant Commerce) | launched end April | peak 120 million daily orders, MAC ~300 million, 2 million+ daily riders (3x April) | Scaling up |
| Consumption platform strategy | separate business units | Taobao/Tmall, Ele.me, and Fliggy combined into Alibaba China E-Commerce Group; tiered loyalty program; CNY 30 trillion addressable market | Up |
| CapEx | — | CNY 380 billion three-year plan; RMB 38.6 billion this quarter; over RMB 100 billion in AI infra/R&D over past four quarters | Up |
| Shareholder returns | — | repurchased ~7 million ADSs for $815 million; nearly $50 billion net cash | Ongoing |