Alibaba Q3 2025 revenue up 5% despite sharp profit decline

Alibaba Group reported revenue of 247,795 million yuan for the September quarter 2025, a 5% increase year-over-year. However, income from operations decreased by 85% to 5,365 million yuan, and non-GAAP net income fell by 72% to 10,352 million yuan, primarily due to investments in quick commerce, user experiences, and technology. Diluted earnings per ADS for the quarter were 8.75 yuan, a 52% decrease.

For the six months ended September 30, 2025, revenue rose 3% to 495,447 million yuan. Income from operations decreased 43% to 40,353 million yuan, and non-GAAP net income was 43,862 million yuan, a 43% decrease compared to the same period in 2024. Diluted earnings per ADS for the six months were 26.73 yuan.

Net cash provided by operating activities for the quarter was 10,099 million yuan, down 68%, resulting in a free cash flow outflow of 21,840 million yuan. During the six months, the company repurchased 73 million ordinary shares for $1.0 billion. As of September 30, 2025, Alibaba had 126,661 employees.