BUSINESS

Alibaba Profit Plunges 67% as Costly Delivery Push Hits Margins

Published: Mar. 20, 2026 3:56 a.m. GMT+8

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Alibaba’s quarterly revenue rose 2% to 284.8 billion yuan, missing analysts’ 289.8 billion yuan estimate. Photo: VCG

Alibaba Group Holding Ltd. reported a sharp drop in fourth-quarter profit, missing expectations as heavy investment in on-demand retail weighed on margins and cash flow.

The Chinese e-commerce giant said non-GAAP net income fell 67% from a year earlier, highlighting the financial strain of its shift toward rapid delivery services as it defends market share amid weak consumption and intense competition.

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Alibaba's Q4 non-GAAP net income fell 67% year-over-year, with revenue up 2% to 284.8 billion yuan, missing analyst expectations.
Heavy investment in on-demand retail boosted segment revenue 56% but sharply reduced margins and cash flow; adjusted EBITA fell 57%.
Cloud computing was a bright spot, with revenue up 36% and market share reaching 36%, while Alibaba maintained net cash of $42.5 billion.

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Who’s Who

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. experienced a sharp 67% drop in Q4 profit due to heavy investments in on-demand retail and intense competition. Revenue increased 2% to 284.8 billion yuan, below expectations. Shares fell, with U.S.-listed shares dropping 9.7%. Cloud computing was a bright spot, with revenue up 36%.

Sun Art Retail Group Ltd.: Sun Art Retail Group Ltd. is a divested unit of Alibaba Group Holding Ltd. This divestment impacted Alibaba's reported revenue. Excluding Sun Art Retail Group Ltd. and other divested units, Alibaba's revenue increased by 9% in the fourth quarter. Further details about Sun Art Retail Group Ltd. are not provided in the article.

Intime Retail Group Co. Ltd.: Intime Retail Group Co. Ltd. (銀泰商業集團有限公司) is a divested unit of Alibaba Group Holding Ltd. Its divestment resulted in a reduced revenue figure for Alibaba when not factoring in the divested units.

AI generated, for reference only