Alibaba Group Holding Ltd ADR

BABA: XNYS (USA)

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Alibaba Earnings: Free Cash Flow Disappointing Due to High AI Investment; Cut Fair Value by 11%

Chelsey Tam

Aug 21, 2026

Alibaba's second-quarter AI cloud and compute services' adjusted EBITA grew 133% year on year. Alibaba expects cloud revenue growth and EBITA margins to rise in the coming quarters. However, free cash flow fell CNY 28 billion to negative CNY 45 billion sequentially due to higher capex and AI costs.

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Alibaba Group Holding Ltd ADR

Alibaba Earnings: Free Cash Flow Disappointing Due to High AI Investment; Cut Fair Value by 11%

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