Alibaba Posts $40 Billion Q2 Revenue as Profit Drops 38% on Capex and EU Fine
Updated
Updated · The Motley Fool · Aug 20
Alibaba Posts $40 Billion Q2 Revenue as Profit Drops 38% on Capex and EU Fine
3 articles · Updated · The Motley Fool · Aug 20
Summary
Net income fell 38% to 20.7 billion yuan ($3.1 billion), missing analyst expectations of 10.72 yuan per ADS after Alibaba reported Q2 revenue of nearly 269 billion yuan ($40 billion), up 9%.
Capital spending jumped 75% to 67.7 billion yuan ($10.1 billion) as Alibaba poured money into AI infrastructure, while a 550 million euro ($642 million) EU fine on AliExpress added to the hit.
Free cash flow swung to negative 44.7 billion yuan ($6.6 billion) from positive 18.8 billion yuan a year earlier, underscoring how investment and one-off charges weighed on the quarter.
China e-commerce revenue slipped 8% to just under 111 billion yuan ($16.5 billion), while AI and cloud revenue surged 45% to 48.4 billion yuan ($7.2 billion), highlighting Alibaba's shift away from its maturing core business.