The Chinese giant slightly increased revenue, but profits exploded

China's Alibaba Group Holding Ltd. had consolidated net revenue of 247.65 billion yuan ($36.64 billion) in the first quarter of fiscal 2025/26 ended June 30.

For comparison, in the same period last year it was 243.24 billion yuan (34.02 billion dollars), which means an increase of about 2 percent. According to the published announcement, the company achieved a net profit of 34.12 billion yuan (4.77 billion dollars), which was 1.8 times higher.

The results achieved in the group were contributed by various entities, of which the largest share is held by Alibaba China E-commerce Group with revenue of 140.07 billion yuan (19.59 billion dollars).

The International Digital Commerce Group, which includes Lazada, AliExpress, Alibaba, and Trendyol, contributed 34.72 billion yuan ($4.85 billion) to sales. Cloud services revenue amounted to approximately 33.4 billion yuan ($4.67 billion).

In its announcement, Alibaba emphasizes that the high net profit was achieved thanks to the use of solutions based on artificial intelligence, which results in a significant reduction in costs.

According to the American daily The Wall Street Journal, the Chinese company is working on new cloud solutions that will be based on new, more efficient semiconductors that will come from Chinese factories.